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Economic Sanctions - Compliance Guidance
Home > Best Practices & Guidance > Economic Sanctions - Compliance Guidance


sanctions imageOver the years, economic sanctions laws and regulations have become increasingly more complex, numerous, and have had a significant effect upon the shipping industry. Sanctions have also had a major impact not only on shipping operations, but also on financial institutions and insurance companies, including on P&I clubs worldwide, serving the shipping industry. The U.S. Department of Treasury, Department of State and the U.S. Coast Guard jointly issued a Sanctions Advisory for the Maritime Industry and the Energy and Metals sectors. The focus of the Advisory was to highlight tools for these industries to counter current and emerging trends related to illicit shipping and sanctions evasion. The Advisory evidences the U.S. Government's commitment to prevent sanctions evasion, smuggling, criminal activity, and facilitation of terrorist activities with a focus on Iran, North Korea and Syria. More recently, as a result of hostilities between Russia and Ukraine, the sanctions regulators of the U.S., U.K. and E.U., among others, have implemented sanctions restricting trade in various goods with Russia, including but not limited to enforcing price caps on crude oil and petroleum products of Russian origin. More details on these restrictions and sanctions applicable to other countries are contained in the American Club's Circulars to its Members. Past circulars are available below, organized by relevant country. Ultimately, however, the U.S. Government and the other principal sanctions regulators emphasize the need for Members to assess their own sanctions risk and, as necessary, to implement compliance controls to address any identified gaps in their compliance programs.

The document, Economic Sanctions - Compliance Guidance, available in English, new Mandarin, and traditional Mandarin provides guidance on sanctions related resources which can be utilized 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, Charterers and/or FD&D coverage.

Members are urged to know how to recognize sanctions issues and consult legal counsel when their compliance program and due diligence investigation into a particular transaction or contemplated voyage raises any sanctions-related concern. As an added benefit to Members, the American Club has partnered with International Compliance Services, Inc., which offers enhanced sanctions due diligence investigations and reports at discounted rates for American Club Members. After completing their own due diligence investigation, with respect to whether cover is available from the American Club for the transaction or voyage in question, Members should contact the Managers prior to the voyage to confirm whether the performance of the contemplated transaction or voyage may or may not prejudice their P&I cover. In an effort to assist our Members in their assessment of sanctions risks, the Compliance Department has created a Due Diligence Questionnaire, the purpose of which is to elicit relevant information pertaining to persons and entities linked to a voyage and the cargo transported.

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.

Disclaimer

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 or the sufficiency of a Member's sanctions compliance program under applicable law. 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.



Relevant American Club Circulars and related documents


Iran

Authorization Issued Providing for 90-day Wind-down Period for Pre-January 10, 2020 Contracts with Iran: Club Circular No. 04/20

Additional US Economic Sanctions Imposed Against Iran: Club Circular No. 02/20

US Department of Treasury Action on Iran and Russia Sanctions: Member Alert - December 18, 2019

Guidance on OFAC: Iran Sanctions as They Relate to Bunkering Operations: September 11, 2019: Club Circular No. 34/19

The United States Expands The Universe Of Iran Sanctions Targets (SDNs) By Targeting The Metals Sector Of Iran: May 10, 2019: Club Circular No. 15/19

Recent US Government Advisories Concerning Iran, North Korea and Syria: March 27, 2019: Club Circular No. 10/19

Iran Sanctions: the Direct Or Indirect Sale, Supply, or Transfer to or from Iran of Graphite, Raw or Semi-finished Metals, Such as Aluminum and Steel, Coal, and Software for Integrating Industrial Processes: November 29, 2018: Club Circular No. 45/18

Iranian Crude Oil Shipment Waivers: November 28, 2018: Club Circular No. 44/18

Secondary Sanctions Against Iran come into force: November 06, 2018: Club Circular No. 41/18

Mandarin Translations of Recent Club Circular Concerning US Sanctions on Iran: Member Alert - August 16, 2018

U.S. Formally Reimposes Secondary Sanctions Against Iran: August 07, 2018: Club Circular No. 28/18

US Withdraws from JCPOA and Reimposes Secondary Sanctions Against Iran: Member Alert - May 11, 2018

U.S. Withdraws from JCPOA and Reimposes Secondary Sanctions Against Iran: May 10, 2018: Club Circular No. 15/18

US Sanctions - Presidential Announcement Concerning Iran: Member Alert - October 17, 2017

US Enacts New Law Requiring the Imposition of Additional Economic Sanctions with Respect to North Korea, Iran and Russia: August 03, 2017: Club Circular No. 23/17

US Economic Sanctions - Expansion of Iranian Sanctions Targets: Member Alert - July 19, 2017

Iran: Additional US Sanctions: February 06, 2017: Club Circular No. 07/17

Coverage by IG Clubs of Incidents Involving Countries Subject to US Economic Sanctions: Trading to and from Iran: February 19, 2016: Club Circular No. 09/16

US Removes Restriction on American Club's Ability to Provide Cover for Shipments of Crude Oil & Petroleum from Iran: February 09, 2016: Club Circular No. 07/16

The US Lifts Secondary Sanctions on Iran and Takes Steps to Implement Certain Other Limited Sanctions Relief: January 18, 2016: Club Circular No. 04/16

US Office of Foreign Assets Control Imposes Sanctions on Iranian Port Operator, Tidewater Middle East Co.: Member Alert - July 05, 2011



Syria

Recent US Government Advisories Concerning Iran, North Korea and Syria: March 27, 2019: Club Circular No. 10/19

Continuing EU and US Sanctions – Syria: May 13, 2016:  Club Circular No. 19/16

Additional EU Economic Sanctions - Iran and Syria: October 22, 2012: Club Circular No. 28/12

Additional US Economic Sanctions: Iran and Syria: May 07, 2012: Club Circular No. 12/12

Developments: (1) EU Ban on the Importation and Transport of Iranian Oil, Petroleum and Petrochemical Products: (2) Proposed US 180 Day Ban of Vessels Trading to Iran, North Korea and Syria: January 26, 2012: Club Circular No. 07/12

US Economic Sanctions in Regard to Syria: December 13, 2011: Club Circular No. 37/11

EU Economic Sanctions in Regard to Syria: September 12, 2011: Club Circular No. 25/11



Cuba

Sanctions Refresher: Venezuela and Cuba: October 26, 2021: Club Circular No. 23/21

The US Embargo of Cuba: Further Guidance - 180 Day Prohibition Waiver Club Circular No. 36/16

The US Embargo in Regard to Cuba: Further Guidance: January 08, 2016 Club Circular No. 02/16



Sudan

US Economic Sanctions - Sudan: January 17, 2017: Club Circular No. 02/17

OFAC Guidance:

https://www.treasury.gov/resource-center/sanctions/Programs/Documents/sudan.pdf



Russia & Ukraine (Crimea)

Russian Sanctions Update: Key Developments in the Sanctions Imposed Against Russia by the UK, EU and US: February 2, 2024: Club Circular No. 2/24

European Union (EU) Sanctions - 11th Package of Economic Sanctions Against Russia: July 6, 2023: Club Circular No. 9/23

United States and European Union Impose Further Sanctions on Russia: March 6, 2023: Club Circular No. 5/23

The Price Cap on Russian Oil: an Update: February 14, 2023: Club Circular No. 3/23

Notice of Cancellation in Respect of War Risks for Certain Covers: December 23, 2022: Club Circular No. 33/22

The Price Cap on Russian Oil: December 9, 2022: Club Circular No. 32/22

European Union (EU) Sanctions - Exception/waiver Published on the Carriage of Certain Russian Cargoes Including Coal and Fertilizers - Update: September 28, 2022: Club Circular No. 26/22

EU Sanctions - Clarification Published on the Carriage of Certain Russian Cargoes Including Coal and Fertilizers: August 12, 2022: Club Circular No. 23/22

UK General Trade Licence Dated March 17, 2022 - Reporting of Vessel Calls to Russia and of Vessels Transiting Russian Waters: May 25, 2022: Club Circular No. 16/22

UK General Trade Licence Dated March 17, 2022 - Reporting of Vessel Calls to Russia and of Vessels Transiting Russian Waters:
     Club Circular No. 16/22
     Frequently Asked Questions concerning Club Circular No. 16/22

Sanctions Update: Further Sanctions Imposed Against Russia: Club Circular No. 08/22

Sanctions Update: The United States Imposes Economic Sanctions Against Russian-controlled Regions of Eastern Ukraine, Donetsk, and Luhansk: Club Circular No. 06/22

US Department of Treasury Action on Iran and Russia Sanctions: Member Alert - December 18, 2019

US Mitigates Effects of Economic Sanctions Imposed Against Additional Russian Entities and Individuals: Member Alert - April 26, 2018

New Developments Concerning United States Sanctions on Russia and Venezuela: Member Alert - April 13, 2018

The United States Imposes Sanctions Against Additional Russian Entities and Individuals: March 13, 2018: Club Circular No. 13/18

US Enacts New Law Requiring the Imposition of Additional Economic Sanctions with Respect to North Korea, Iran and Russia: August 03, 2017: Club Circular No. 23/17

Additional Individuals and Entities Targeted in Relation to Ukraine/Russia: August 04, 2015: Club Circular No. 34/15

Ukraine/Russia Related Economic Sanctions: Crimea Region of Ukraine: February 11, 2015: Club Circular No. 11/15

PEME Program Update: Effect of Sanctions on PEME Clinics in the Crimea - Sevastopol and Kerch: February 10, 2015: Club Circular No. 10/15

Additional US Economic Sanctions Against Russia/Russian Entities: December 23, 2014: Club Circular No. 38/14

Additional US Sanctions - Russian Entities: September 17, 2014: Club Circular No. 26/14

Imports of Goods from Crimea and Sevastopol: August 12, 2014: Club Circular No. 24/14

Additional US Sanctions - Russian Entities: July 30, 2014: Club Circular No. 22/14

New US Sectoral Sanctions Against Certain Russian Entities: July 17, 2014: Club Circular No. 20/14

EU Sanctions in Respect of Crimea and Sevastopol: July 16, 2014: Club Circular No. 19/14

The Ukraine and Crimea: US Sanctions Against Russian Individuals and Entities: Member Alert - 03/24/14



North Korea

U.S. economic sanctions against North Korea prohibit the American Club from, among other things, providing cover for members and their vessels trading with North Korea. The American Club does not provide cover for voyages to and from North Korea or otherwise or engage in transactions involving North Korea. The U.S. North Korean economic sanctions have recently been strengthened and they prohibit a wide range of activities and transactions that have both a North Korean and U.S. nexus.

Our Circulars of January 6, 2016, February 26, 2016, March 18, 2016, December 19, 2016, and August 3, 2017 summarize comprehensive U.S. economic sanctions against North Korea, which continue in force:

  • Democratic People's Republic of Korea (DPRK) (North Korea) - Enforcement of Sanctions: May 1, 2020: Club Circular No. 18/20
  • Recent US Government Advisories Concerning Iran, North Korea and Syria: March 27, 2019: Club Circular No. 10/19
  • Democratic People's Republic of Korea (DPRK) (North Korea) - Enforcement of UN, US and EU Sanctions: January 11, 2019: Club Circular No. 03/19
  • Implementation of Economic Sanctions Against North Korea by The People's Republic of China: March 09, 2018: Club Circular No. 11/18
  • The United States Issues Detailed Advisory Regarding Deceptive Shipping Practices by North Korea to Evade Economic Sanctions: February 27, 2018: Club Circular No. 10/18
  • The United Nations Imposes Additional Sanctions on North Korea: January 03, 2018: Club Circular No. 01/18
  • The United Nations and the United States Impose New, Additional Sanctions on North Korea: September 25, 2017: Club Circular No. 27/17
  • United Nations Imposes Additional Sanctions on North Korea: August 09, 2017: Club Circular No. 24/17
  • US Enacts New Law Requiring the Imposition of Additional Economic Sanctions with Respect to North Korea, Iran and Russia: August 03, 2017: Club Circular No. 23/17
  • United States Imposes Additional Sanctions on North Korea: December 19, 2016: Club Circular No. 44/16
  • United States Imposes Additional Sanctions with Respect to North Korea: March 18, 2016: Club Circular No. 13/16
  • United States Imposes Additional Sanctions with Respect to North Korea: February 26, 2016: Club Circular No. 11/16
  • US Economic Sanctions - North Korea: January 06, 2015: Club Circular No. 03/15

On August 5, 2017, the UN Security Council unanimously adopted Resolution 2371 (2017) strengthening existing economic sanctions against North Korea in response to North Korea’s recent intercontinental ballistic missile tests. Resolution 2371 is a further step in the intensification of economic sanctions against North Korea. Previously, the Security Council adopted Resolution 2270 which targeted North Korea’s military as well as its economic sectors in an effort to stop North Korea’s nuclear and missile activities.

Our Circulars of March 4, 2016 and August 9, 2017 summarize U.N. economic sanctions against North Korea, which member states of the U.N. are obligated to implement and enforce:



Other (Burma/Myanmar, Ivory Coast, etc.)

United States Imposes Sanctions on Jet Fuel Transport to Burma: September 8, 2023: Club Circular No. 11/23

US Economic Sanction Against Burma Terminated: October 12, 2016: Club Circular No. 35/16

US Economic Sanctions: Certain Persons (Individuals) in Venezuela: March 12, 2015: Club Circular No. 14/15

United States Sanctions Against Certain Persons (Entities and Individuals) in Yemen: November 16, 2012: Club Circular No. 30/12

Relaxation of US Sanctions Against Burma (Myanmar): October 03, 2012: Club Circular No. 25/12

Economic Sanctions Update: US Libya Sanctions Lifted: Member Alert – 12/21/11

Circulars and Member Alerts are published by The American Club as a service to Members. While the information is believed to be correct, it is not complete and The American Club does not assume responsibility for completeness or accuracy.



United States

The United States Office of Foreign Assets Control (OFAC): 

https://www.treasury.gov/about/organizational-structure/offices/Pages/Office-of-Foreign-Assets-Control.aspx

https://sdnsearch.ofac.treas.gov/ is a US government search engine in respect of certain (but not all) entities subject to or that are targets of sanctions 

Office of Foreign Assets Control / US Department of the Treasury (Information on US sanctions) http://www.treasury.gov/resource-center/sanctions/Pages/default.aspx

Overview of US sanctions http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx

OFAC Specially Designated Nationals and Blocked Persons List Search http://sdnsearch.ofac.treas.gov/Default.aspx



European Union

The United Kingdom Treasury (HMT): http://hmt-sanctions.s3.amazonaws.com/sanctionsconlist.pdf

https://www.gov.uk/government/publications/financial-sanctions-iran-nuclear-proliferation is the UK government website dealing with EU and UK sanctions in respect of Iran.

https://www.gov.uk/government/publications/financial-sanctions-consolidated-list-of-targets is the list of sanctioned targets held by the UK and includes individuals and entities listed as targets by the European Union.

United Kingdom (UK) Department for Business, Innovation and Skills (Information on UK, EU and UN sanctions) https://www.gov.uk/sanctions-embargoes-and-restrictions/

European Union / Restrictive measures (sanctions):

http://eeas.europa.eu/cfsp/sanctions/index_en.htm

http://eeas.europa.eu/cfsp/sanctions/docs/ectl-fsd_howto-v04_en.pdf

http://eeas.europa.eu/cfsp/sanctions/docs/measures_en.pdf



International Group

The International Group’s website IGP&I News provides access to various useful links including to the European Union Foreign Affairs Council regulations on US sanctions.

FAQs on legislation published by the International Group of P&I Clubs, June 2013 Iran Sanctions - U.S Legislation - Updated FAQs



Libya

Economic Sanctions Update: UN and US expansion of limited sanctions: Club Circular No. 15/16

Economic Sanctions Update: US Libya Sanctions Lifted: Member Alert – 12/21/11
 



Venezuela

United States Temporarily Authorizes Transactions Involving Oil, Gas and Gold in Venezuela: December 1, 2023: Club Circular No. 19/23

United States Temporarily Authorizes Transactions Involving Oil, Gas and Gold in Venezuela: October 23, 2023: Club Circular No. 14/23

Sanctions Refresher: Venezuela and Cuba: October 26, 2021: Club Circular No. 23/21

Venezuela Sanctions - Venezuela Maritime Authority: February 9, 2021:  Club Circular No. 04/21

US Sanctions - US Department of the Treasury Action on Venezuela: February 19, 2020: Member Alert - February 19, 2020

Developments in Regard to US Sanctions on Venezuela: Blocking of Venezuelan Government and Other Entities: Implications for US and Non-US Persons: August 19, 2019:  Club Circular No. 30/19

US Sanctions on Venezuela: Risks for Non-US Persons Concerning Transactions with PdVSA: April 12, 2019: Club Circular No. 12/19

US Imposes New Sanctions Against the Government of Venezuela Through Designation of Petroleos De Venezuela S.A. (PdVSA): February 06, 2019: Club Circular No. 04/19

New Developments Concerning United States Sanctions on Russia and Venezuela: Member Alert - April 13, 2018

United States Imposes New Financial Sanctions Against the Government of Venezula Including PdVSA: August 31, 2017:  Club Circular No. 26/17



General

Obligations of Foreign-based Persons to Comply with US Sanctions and Export Control Laws: March 14, 2024: Club Circular No. 09/24

Statement on Press Coverage Regarding Sanctions: February 09, 2024: Club Circular No. 06/24

Quint-Seal Compliance Note: Know Your Cargo: January 19, 2024: Club Circular No. 02/24

Sanctions - Recent Deceptive Practices: February 01, 2022: Club Circular No. 04/22

US Issues Global Advisory Providing Guidance to Maritime Sector to Preclude Illicit Shipping and Sanctions Evasion: May 22, 2020: Club Circular No. 22/20

Vessel Monitoring and P&I Insurance: May 15, 2020: Club Circular No. 20/20