Europe's highest court overturned a decision by the EU governments to freeze the assets of a Saudi businessman and a Sweden-based charity because of their alleged ties to terrorist groups.

The ruling allows judicial review of a regulation by the United Nations Security Council requiring member states to freeze the assets of individuals and organizations with ties to Osama bin Laden, al-Qaida or the Taliban.

But the European Court of Justice said the Security Council should not have deprived Yasin Al-Qadi and the Al Barakaat International Foundation of their property without giving them a chance to defend themselves in court.