(www.MaritimeCyprus.com) The global sanctions landscape has changed a great deal in 2020. The impact of sanctions breaking, or even being perceived to have broken sanctions is often severe and may put a company out of business, effectively shutting it out of the financial market.
To navigate the quickly changing sanctions landscape and mitigate the risks posed by sanctions breaking requires comprehensive due diligence routines implemented by parties involved in maritime activities. On 14 May 2020, the Office of Foreign Asset Control (OFAC) in the US issued a Global Maritime Advisory aimed at parties active within the maritime sector, providing detail on the level of due diligence and other compliance activities expected of parties whose business activities run a risk of engaging in trades that may breach US sanctions.
The advisory covers, among others, shipowners, operators, charterers, and brokers as well as insurers active within the maritime sector.
On 27 July 2020, the UK equivalent to OFAC, the Office of Financial Sanctions Implementation, produced a similar advisory setting out the UKâs expectations for parties involved in maritime activities.
Thus, similar standards are now expected from UK persons and entities. The significance of these advisories lies in the fact that they represent an attempt by US and UK governments to set out the standards by which the maritime industry will be judged if they are linked to sanctions breaking.
As such, the advisories are relevant reading and a good starting point for all organisations developing a sanctions compliance program, not only for US and UK entities.
Click below to download the relevant advisory from The Swedish Club:
Source: The Swedish Club