The Swedish Club has previously advised that US sanctions against Iran cause payment problems because banks have proven reluctant to make any payments having even a connection with Iran notwithstanding that the payment may be perfectly legitimate. In line with its previous announcement, the Club now informed that the problem is not isolated to Iran.
The prospects to make a payment in relation to any of the following countries are very limited:
- Syria
- North Korea
- Crimea
- Iran
- Cuba (USD transactions)
As a result of the position taken by the banks, the Club foresee practical problems to assist and pay claims generally in case an incident has a direct or indirect connection with any of the above countries.
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 these countries.
This will include the situation mentioned and also other type of situations, for instance in case of a collision taking place within these countries’ territorial waters.
The Club had earlier advised that 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 or the other countries.
