To the attention of our business partners;
Please be informed that IG P&I Clubs have recently published a circular on ‘’Sanctions: Recent Deceptive Practices in sanctions’’ to draw the attention of the members to some of the deceptive practices employed by the parties engaged in activities that offend the sanctions regimes operated by national governments and supranational bodies such as the UN.
The increasing trend detected over the past months in trade of sanctioned cargoes shed a light over the deceptive practices employed by the parties, which can be summerized as below. These practices are mainly for disguising the identity of the ship, the location and navigational activities of the vessels. That being said, these practices include the following;
Results of breach of sanctions
We must say that those shipowners and or the other parties, who were alleged to be involved in such activities (sanctions breaches), have been seen declined access to ports, denied from banking services and removed from flag registries.
As known well, P&I covers do not respond to unlawful trading. Moreover, the cover can be terminated where there is a risk to Club and the provision of insurance may place Club at risk of, or in breach of sanctions, even if the underlying trade is lawful.
Please be informed that all Clubs in IG have issued similar circular to inform the members. For further details & reading, please visit following links;
https://www.skuld.com/topics/legal/sanctions/sanctions-recent-deceptive-practices/
https://home.treasury.gov/system/files/126/05142020_global_advisory_v1.pdf
Omni
