A blocked fund is defined as money or capital realized when a foreign operation involving the transfer of funds is blocked as a result of regulations imposed by the government of the country where the money was generated. When a fund is suspected to be generated from illegal activities or criminal acts, government can impose certain regulations hindering the money to be transferred. The fund then becomes a blocked fund.
An individual or a company with a large amount of blocked funds can be impaired by the inaccessibility of the funds.
