Iran

Iran

Members will be aware that sanctions imposed by the United States and European Union have had a significant impact on the ability to trade to or from Iran and the ability to trade with Iranian persons and companies.

Members will also be aware that insurers are directly targeted by the sanctions. Most of these sanctions remain fully in force notwithstanding the Joint Plan of Action and the temporary and limited sanctions relief as reported here.

As such there has been a serious effect on North’s ability to handle claims arising in Iran and/or from Iranian claimants. A number of changes were made to North’s rules in order to protect the Club itself from exposure to sanctions.

The Club has a dedicated sanctions advice team who will be able to assist Members in relation to any sanctions queries and which can be contacted directly by Members at sanctions.advice@nepia.com


Latest Updates

President Trump De-certification of the Joint Comprehensive Plan of Action - 16 October 2017

The decision of President Trump to “de-certify” the JCPOA does not mean the inevitable re-imposition of sanctions revoked by the JCPOA.   It remains the position that lawful trading to Iran does not of itself prejudice Club cover and cover will remain in place, subject as ever to the Club Rules.  The de-certification does, however, herald a new period of increased uncertainty as to whether or not the deal will survive and whether or not sanctions will be re-imposed.

Read the full update here.

 

New Iran Sanctions Briefing - 16 October 2017

We have issued a new Iran Sanctions Briefing which can be viewed here: Iran Sanctions Briefing

 

Iran Trading - Increased Limit of Fall-Back Cover - 14 April 2016

Members are referred to our Circulars dated 22 February 2016 and 21 March 2016. The Group has now been able to obtain a higher limit of cover (€100 million) compared to that which was available initially (€70 million) and further secured underwriters’ agreement to a second full reinstatement of cover.  All other features of the cover remain unchanged. The Group remains of the view that because of the limitations of fall-back cover, whilst mitigated to an extent by the increase in limit and the additional reinstatement, it does not provide a long term solution to Members’ needs.  The Group therefore continues to engage with the US administration and a further report will be made in due course.

Read the full Circular here.

 

Iran Trading - P&I Cover Update - 21 March 2016

Members are referred to our Circular dated 22 February 2016 concerning Iran sanctions. This Circular is intended to update Members on the latest developments in relation to the interim and longer-term solutions to the reinsurance recovery shortfall risk under the Group General Excess Loss reinsurance programme and Hydra retrocession programme.

Read the full Circular here.

 

Iran Trading - P&I Cover - 22 February 2016

Members are referred to our Circular dated 19 January 2016 concerning developments with regard to Iran sanctions.  This Circular is intended to assist Members when deciding whether to trade to/from Iran by explaining what P&I cover is available as well as identifying any possible shortfalls in cover. 

Read the full Circular here.

 

Lifting of Certain Sanctions Under the Joint Comprehensive Plan of Action (JCPOA) - 19 January 2016

This Circular advises Members of the current position on their insurance cover arrangements with regard to the partial lifting of Iran sanctions under the Joint Comprehensive Plan of Action (JCPOA).

Read the full Circular here.

 

Iran: Implementation Day - 16 January 2016

Under the Joint Comprehensive Plan of Action (JCPOA) dated  July 14, 2015 and following a positive report by the International Atomic Energy Authority on Iran’s adherence to its obligations under the JCPOA, the European Union and the US have on Saturday 16 January (now termed Implementation Day) lifted EU and U.S. nuclear-related economic sanctions on Iran. Anti-terrorism and human rights sanctions remain in force.

By and large this will have the effect of restoring trade to and from Iran to the position it was in before the introduction of such measures. However if contemplating trade with Iran it is important that Members note that US Primary sanctions remain in full force and continue to prevent US persons (which include banks, insurers and reinsurers) from dealing with Iran. In certain circumstances this may affect the amount recoverable from the Association or give rise to practical difficulties when processing claims payments involving Iranian entities.

Further there remain a significant number of Iranian persons and businesses which are designated by the US and EU. This particularly applies to those parts of the state of Iran which are engaged in military activities, the development of weapons and human rights abuses. Ports owned and operated by Tidewater also remain designated by the US and EU.   Sanctions continue to apply to non-U.S. persons who knowingly facilitate significant financial transactions with or provide material or certain other support to those Iranian entities on the SDN List.

Members are therefore encouraged to exercise enhanced due diligence when engaging in trade with Iran and are asked to note the potential for a shortfall in any recovery in reinsurance which under club rules is born by the Member.

Further and more detailed guidance will be provided shortly.

 

Iran: US Department of the Treasury FAQs and Guidance - 10 August 2015

The US Department of the Treasury has issued FAQs and guidance relating to the continuation of certain temporary sanctions relief pursuant to the JPOA prior to implementation of the JCPOA.

 

Iran: Announcement of a Joint Comprehensive Plan of Action Regarding the Islamic Republic of Iran’s Nuclear Program - 14 July 2015

On 14 July 2015, the E3+3 and Iran reached a Joint Comprehensive Plan of Action (JCPOA) to ensure that Iran’s nuclear program will be exclusively peaceful. The JCPOA will provide Iran with phased sanctions relief upon verification, by the International Atomic Energy Agency (IAEA), that it has implemented key nuclear commitments.

Sanctions relief will begin on "Implementation Day" once the IAEA verifies that Iran has implemented key nuclear-related measures described in the JCPOA. Detailed guidance related to the JCPOA will be published prior to Implementation Day.

The E3+3 and Iran also decided on 14 July 2015 to further extend through Implementation Day the sanctions relief provided for in the Joint Plan of Action (JPOA) of 24 November 2013, as extended. This JPOA sanctions relief is the only Iran-related sanctions relief in effect until further notice and Members are reminded of their obligations to adhere strictly to all applicable sanctions legislation.

The suspension of the restrictive measures specified in the Joint Plan of Action is therefore extended until 14 January 2016 under EU Council Decision 2015/1148. In practice this means sanctions against Iran in EU Regulation 267/2012 (as amended), including the current thresholds for prior notification or prior notification of Iran transfers remains unchanged and guidance issued by HM treasury can be read here.

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) issued a statement relating to the Joint Comprehensive Plan of Action regarding the Islamic Republic of Iran’s Nuclear Program which may be read here.

Read more about future sanctions policy

 

Continuation of Temporary Sanctions Relief Implementing the Joint Plan of Action

On 10 July 2015, the P5+1 and Iran decided by mutual consent to extend the JPOA for three days in order to continue with negotiations. In the meantime they will continue to implement the commitments described in the JPOA, and thus the U.S. government and the EU have extended the limited sanctions relief provided for in the JPOA.

There is therefore no material change to the sanctions against Iran, they remain in place save for the limited and specific sanctions relief introduced on 20th January 2014 and which has now been extended until 13 July 2015.

 

Continuation of Temporary Sanctions Relief Implementing the Joint Plan of Action

On 7 July 2015, the P5+1 and Iran decided by mutual consent to extend the JPOA for three days in order to continue with negotiations. In the meantime they will continue to implement the commitments described in the JPOA, and thus the U.S. government and the EU have extended the limited sanctions relief provided for in the JPOA.

There is therefore no material change to the sanctions against Iran, they remain in place save for the limited and specific sanctions relief introduced on 20th January 2014 and which has now been extended until 10 July 2015.

 

Guidance on the Continuation of Certain Temporary Sanctions Relief Implementing the Joint Plan of Action, As Extended

On November 24, 2013, the United States and its partners in the P5 + 1 (China, France, Germany, Russia, the United Kingdom, and the United States, coordinated by the European Union’s High Representative) reached an initial understanding with Iran, outlined in a Joint Plan of Action (JPOA).

On 30 June 2015, the P5+1 and Iran decided by mutual consent to extend the JPOA for seven days in order to continue with negotiations. In the meantime they will continue to implement the commitments described in the JPOA, and thus the U.S. government and the EU have extended the limited sanctions relief provided for in the JPOA.

There is therefore no material change to the sanctions against Iran, they remain in place save for the limited and specific sanctions relief introduced on 20th January 2014 and which has now been extended until 7 July 2015.

The U.S. Office of Foreign Asset Control (“OFAC”) has issued new Guidance relating to the extension of the sanctions relief and published FAQ’s. In addition the EU has amended its earlier Decision to similarly extend the JPOA. Both the EU Decision and the OFAC guidance can be found below:

US Department of the Treasury - Continuation of Certain Temporary Sanctions Relief Implementing the Joint Plan of Action, as Extended

EU Council Decision (CFSP) 2015/1050 of 30 June 2015 amending Decision 2010/413/CFSP concerning restrictive measures against Iran

 

Iran Sanctions – Announcement of Parameters for a Joint Comprehensive Plan of Action  (“JCPOA”)

On 2 April, it was announced that the five permanent members of the UN Security Council plus Germany (known as the P5+1 , alternatively E3+3) had agreed the key parameters of an agreement with Iran.  However, and as set out in the U.S. Department of State media note,

“Important implementation details are still subject to negotiation, and nothing is agreed until everything is agreed. We will work to conclude the JCPOA  based on these parameters over the coming months”.

OFAC has now issued guidance  relating to the 2 April announcement which reiterates that until and unless a final agreement is reached “all U.S. sanctions remain in place and will continue to be vigorously enforced”.

Members should therefore continue to ensure compliance with all applicable sanctions.

For information Members are referred to the Club’s Loss Prevention Briefing and additional resources and updates as below:


Additional Resources


FAQs and Guidance