As the US has withdrawn from the JCPOA (Joint Comprehensive Plan of Action), it will impose additional extra territorial sanctions in relation to Iran, starting from 4 November 2018, the Swedish Club informed.
One consequence of the new sanction is that banks are reluctant to make any payments related with Iran, even if the payment may be perfectly legitimate. For instance, the Swedish Club informed of some problems, where it had problems paying 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, the Club expects practical problems ins helping with pay claims in case an incident has a direct or indirect connection with Iran, while a claim may be excluded because of an actual breach of sanctions. This includes the situation mentioned and other type of situations as well, such as in case of a collision in Iranian waters.
In order to limit the risk that payments are obstructed, the Swedish Club suggests avoiding using US dollars as currency if the payment has any direct or indirect connection with Iran.
Members are reminded that breach of sanction legislation may result in that insurance cover can be excluded.
The Club concluded.
