Congress Bank Accounts 'Frozen': How Financial Coercion Became a Political Tool

Freezing bank accounts as a political strategy is not restricted to dictatorships and authoritarian regimes.

Freezing bank accounts as a means of political coercion is not just restricted to dictatorships and authoritarian regimes.

(Photo: Shruti Mathur/The Quint)

My friends from the Bharatiya Janata Party (BJP) were elated when the government froze the bank accounts of the Indian National Congress – and later withdrew Rs 66 crore (USD 8 million) to adjust against a past tax demand.

They joyously complimented the incumbent government on its cleverness in depriving an Opposition party of campaign funds ahead of the parliamentary election. Their delight over this "novel and innovative” idea is misplaced.

A Nazi Tactic To Exercise Control

Both authoritarian and liberal regimes across the world have been freezing the bank accounts of their political opponents as part of their strategy to suppress dissent and consolidate power.

After Adolf Hitler became the Chancellor of Germany in January 1933, the Nazi regime swiftly moved to silence and marginalise political opponents, particularly members of left-wing parties such as the Social Democrats and the Communists.

One of the tactics employed by the Nazis was to freeze the bank accounts belonging to individuals and organisations deemed hostile to the regime. This action was often carried out under the pretext of combating "subversive activities" or "treasonous behaviour."

By doing so, the Nazis sought to cripple the financial resources of their opponents, making it difficult for them to fund political activities, publications, or resistance efforts. Additionally, freezing bank accounts sent a clear message to political opponents that they would face severe consequences for challenging or defying the Nazi regime.

A Key Tool of Fear and Repression 

During Ferdinand Marcos's dictatorship in the Philippines which lasted from 1965 to 1986, the freezing of bank accounts was a common tactic used to target political rivals, activists, and dissidents.

Benigno "Ninoy" Aquino Jr, a prominent Opposition leader and a vocal critic of Marcos's authoritarian rule, was detained multiple times during martial law declared in 1972. His bank accounts, along with those of his family members and supporters, were frozen.

Such manoeuvres contributed to the fear and repression that characterised Marcos's dictatorship and helped him maintain his grip on power for over two decades.

During Augusto Pinochet's military dictatorship in Chile, which lasted from 1973 to 1990, the regime froze bank accounts of political rivals, dissenters and individuals critical of the regime. In the mid-1970s, "Operación Colombo" involved the disappearance of left-wing activists and dissidents, many of whom were the opponents of the Pinochet regime.

The regime used a combination of censorship, disinformation, and repression to create the impression that these individuals had been killed in internal disputes among leftist groups. In reality, many of these individuals were detained, tortured, or killed by the regime's security forces.

The regime froze the bank accounts of these individuals, their families and supporters, and confiscated their assets.

More recently in 2019, the freezing of the bank accounts of political opponents occurred in Russia during the Moscow City Duma election campaign.

Alexei Navalny, the Opposition leader and anti-corruption activist who died last week in the Arctic Circle prison, faced harassment and repression from the Russian government. In August 2019, just weeks before the election, Russian authorities raided the offices of Navalny's Anti-Corruption Foundation (FBK) and froze the organisation's bank accounts.

This move severely disrupted the activities of the FBK which had been instrumental in exposing corruption among Russian officials and mobilising Opposition to the ruling party, United Russia.

A Proven Global Strategy To Curb the Opposition

Despite these challenges, Navalny and his supporters continued to campaign against government corruption, using alternative means of fundraising and communication to bypass government restrictions.

The freezing of bank accounts served as a reminder of the risks faced by political opponents in Russia and the lengths the government would go to maintain its grip on power.

In Venezuela, under the presidency of Nicolás Maduro, the freezing of bank accounts of political opponents has also been used as a method to suppress Opposition movements. In January 2019, amid a political crisis in Venezuela, Juan Guaidó, the leader of the Opposition, invoked constitutional provisions to declare himself interim president, challenging Maduro's legitimacy.

In response to it, the Maduro government initiated a series of measures to dent Guaidó's leadership and suppress the Opposition movement. The bank accounts of Juan Guaidó and his allies were frozen. The Maduro government accused Guaidó and his supporters of participating in illegal activities and receiving funds from foreign governments to destabilise Venezuela's sovereignty. The frozen assets and bank accounts restricted the Opposition’s ability to conduct political activities.

In Turkey, following the failed coup attempt in July 2016, President Recep Tayyip Erdoğan's government launched a widespread crackdown on perceived enemies of the state, targeting not only the alleged coup plotters but also a broad spectrum of individuals and organisations deemed to be affiliated with or supportive of Opposition movements, including the Gülen movement, Kurdish political activists, journalists, academics, and civil society activists.

As part of this crackdown, the government implemented emergency decrees granting authorities sweeping powers to freeze bank accounts and seize assets without due process. Thousands of bank accounts belonging to individuals suspected of involvement in or sympathy with Opposition movements were frozen.

This included bank accounts belonging to members of the Peoples' Democratic Party (HDP), a pro-Kurdish political party, and their supporters. The HDP has been a vocal critic of the Turkish government's policies towards the Kurdish minority.

Not Exclusive to Authoritative Regimes

Freezing bank accounts is just one of many tactics employed by the political parties in power to suppress opponents and consolidate their power. Several other repressive methods have been applied in the countries mentioned – including in India during the 1975-77 "Emergency”.

However, it isn't just restricted to dictatorships and authoritarian regimes. In early 2022, a progressive liberal country like Canada, evading due process, authorised banks to freeze the accounts of its citizens who were involved in the 'Trucker’s Protests.’

The government, in its efforts to prevent the transmission of the virus, was forcing truckers to take an experimental COVID 19 vaccine.

The truckers rose in protest and for three weeks, blockaded the streets of Ottawa with their vehicles. The government ordered the locking of protestors’ bank accounts. Supporters who donated to the protesting truckers through PayPal had their money seized. PayPal was told to redirect these contributions to better causes.

(Akhil Bakshi a Fellow of Royal Geographical Society, Fellow of Explorers Club USA, and Editor of Indian Mountaineer, has authored 27 books including Between Heaven and Hell: Travels Through South Asia. This is an opinion piece and the views expressed are the author’s own. The Quint neither endorses nor is responsible for them.)