Iran sanctions have wide impact on payments
As previously advised the US has ceased participation in the Iran nuclear deal (Member Alert of 9 May 2018). As a result, the US will impose additional extra territorial sanctions in relation to Iran with start from 4 November 2018. For more details about these sanctions please visit our website at https://www.swedishclub.com/loss-prevention/legal/sanctions/
Members are reminded that breach of sanction legislation may result in that insurance cover can be excluded.
One additional consequence with the new sanction landscape is that banks have proven reluctant to make any payments having even a remote connection with Iran notwithstanding that the payment may be perfectly legitimate. For instance, the Club has recently experienced problems to pay surveyors in Dubai attending to a vessel where the only nexus with Iran was that the vessel’s immediate port call was in Iran.
As a result of the position taken by banks, the Club foresee practical problems – in addition to the fact that a claim may be excluded due to an actual breach of sanctions – to assist and pay claims generally in case an incident has a direct or indirect connection with Iran. This will include the situation mentioned and also other type of situations, for instance in case of a collision taking place within Iranian territorial waters.
One way to minimise the risk that payments are obstructed is to avoid using US dollars as currency if the payment has any direct or indirect connection with Iran.
In case of any questions regarding Iran sanctions, please contact Anders Leissner, email@example.com.
Member Alert is published by The Swedish Club as a service to members. While the information is believed correct, the Club cannot assume responsibility for completeness or accuracy.