5 December 2011

Trade Sanctions Against Syria & Iran

 

Iran was the target of new measures by various Sanctions regimes. Recently we have seen some new developments as the Arab League - for the first time ever - imposed new Sanctions on Syria.

The Arab League suspended Syria earlier this month. The decision was made after Syria refused to allow 500 Arab League monitors into the country to assess the situation on the ground.

In addition the European Union governments have agreed to impose additional financial sanctions on the government of Syria and the formal approval from the EU foreign ministers is expected by the 1st of December. EU companies will be prohibited from trading, which includes the provision of insurance, with Syria.

Based on these developments we have had to change our handling of Syria and move it up into the category of 'Very comprehensive Sanctions' in order to ensure that we have the right controls in place and ensure compliance with the applicable Sanctions regimes that may affect transactions.

Also, with effect from 21st November 2011, the Government has imposed tough new financial restrictions against Iran, which cut off all financial ties with Iranian banks. This follows the International Atomic Energy Agency’s latest report on Iran, which highlights fresh concerns about the possible military dimensions of Iran’s nuclear programme.

From 15:00 Monday 21st November, all UK credit and financial institutions are required to cease business relationships and transactions with all Iranian banks, including the Central Bank of Iran, their branches and subsidiaries.

Iranian banks play a crucial role in providing financial services to individuals and entities involved with Iran’s nuclear and ballistic missile programme. This measure will protect the UK financial sector from being unknowingly used by Iranian banks to help support and grow these accounts. 

Please be aware that, no new business can be accepted for Iranian and Syrian related business. That is risks located in Iran/Syria, Iranian/Syrian nationals, Iranian/Syrian companies, and companies organised under Iranian/Syrian law. Also, goods originating from or destined for Syria.  For any current business we may have, please be aware that no payments of any kind should be made directly or indirectly to, or for the benefit of, any Iranian or Syrian entity without referral to Insurers and prior to HM Treasury approval.  This includes any mid term adjustments where additional or return premiums occur.