In recent years, sanctions legislation has become increasingly more complex and has had a significant effect upon the shipping industry. Sanctions have had a major impact not only on shipping operations but also through financial institutions and insurance companies serving the shipping industry, including on P&I clubs worldwide.
This Economic Sanctions - Compliance Guidance document provides guidance on certain sanctions related resources which can be utilized by the American Club's Membership to not only foster and encourage general awareness of sanctions issues, but also to enable Members to develop their own internal compliance policies and procedures and to appreciate the interplay between such sanctions laws and their potential effect on a Member's P&I and/or FD&D coverage.
The American Club has issued and disseminated considerable information in the form of Circulars, Alerts and seminars on sanctions related issues and the Membership is encouraged to not only consult these existing resources and to seek legal advice from counsel, but also to reach out to the Managers of the American Club ("the Managers") to obtain preliminary information on the existing sanctions regimes. When used in conjunction with a Member's internal compliance program and, as discussed below, this guidance should assist Members with minimizing their own risks and exposures to potential sanctions violations which may carry serious civil or criminal penalties, entail loss of business privileges and cause reputational harm.
With respect to their own activity, Members are urged to consult legal counsel when their compliance program and due diligence investigation into a particular transaction or contemplated voyage raises any sanctions related concern. Then, after completing such due diligence, with respect to whether cover is available from the American Club for the transaction or voyage in question, Members should contact the Managers to confirm whether the performance of the contemplated transaction or voyage may or may not prejudice their P&I cover.
It is hoped that, through such internal compliance and due diligence investigation by the Member, when combined with its consulting legal counsel and maintaining close communication with the American Club to address any issues regarding cover, this resource will assist the American Club's Membership to better navigate these complex issues and reduce overall exposure to sanctions related problems and risks.
I. Compliance by American Club Members
II. Sanctions Indicators/Information Elements
III. Awareness of Applicable Prohibitions and Screening Information
IV. Screening by Members - Two, Three or Sometimes Four Step Due Diligence
V. Consult Legal Counsel
VI. Contact the American Club's Compliance Center
VIII. Country specific links to relevant American Club Circulars, and related documents
IX. Useful Sanctions Related Web Links
This brief economic sanctions compliance guidance has been prepared by the American Club to assist Members in complying with sanctions laws applicable to them and to the American Club. This guidance does not constitute and should not be construed as legal advice or a determination by the American Club as to the availability of cover for any specific case. The American Club urges Members to obtain independent legal advice regarding the applicability of sanctions laws to them and with respect to their compliance obligations under such laws.