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ddawson
2023-09-08 14:19:54 -07:00
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content/concepts/tokens/clawing-back-tokens.md
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# Clawing Back Tokens
{% include '_snippets/_clawback-disclaimer.md' %}
{% include '_snippets/clawback-disclaimer.md' %}
For regulatory purposes, some issuers need the ability to recover tokens after they are distributed to accounts. For example, if an issuer were to discover that tokens were sent to an account sanctioned for illegal activity, the issuer could recover, or *claw back*, the funds.
Issuers can gain the ability to claw back their tokens by enabling the **Allow Clawback** flag on their issuing account. This flag cannot be enabled if the issuer has already issued tokens.
**Note:** You can only claw back issued tokens created by your account. You cannot claw back XRP in this way.
Clawback is disabled by default. To use clawback, you must send an [AccountSet transaction][] to enable the **Allow Clawback** setting. **An issuer with any existing tokens cannot enable Clawback.** You can only enable Allow Clawback if you have a completely empty owner directory, meaning you must do so before you set up any trust lines, offers, escrows, payment channels, checks, or even signer lists.
Clawback is disabled by default. To use clawback, you must send an [AccountSet transaction][] to enable the **Allow Trust Line Clawback** setting. **An issuer with any existing tokens cannot enable Clawback.** You can only enable **Allow Trust Line Clawback** if you have a completely empty owner directory, meaning you must do so before you set up any trust lines, offers, escrows, payment channels, checks, or signer lists.
If you attempt to set `lsfAllowTrustLineClawback` while `lsfNoFreeze` is set, the transaction returns `tecNO_PERMISSION`, because clawback cannot be enabled on an account that has already disclaimed the ability to freeze trust lines.
Conversely, if you try to set `lsfNoFreeze` while `lsfAllowTrustLineClawback` is set, the transaction also returns `tecNO_PERMISSION`.