Sayin Ilgili,

Mesajımizin en altindaki sirkuler tum Grup Kluplerince ortak yayinlanmis olup bilgilerinize sunulur. Konu ile ilgili bu hafta yayinlanan bazi diger klup ve hukuk burolarinin sirkuleri de ayrica ekte bilgilerinize sunulur. Bu hususun sigortalara, ozellikle P&I sigortalarina dair yansimalari hakkinda ozet yorumlarimizi asagida bilgi ve goruslerinize sunariz.

Dear Sirs,

The circular at the bottom of our email has been issued by all Group Clubs.  Also are attached circulars from other Group Clubs and law firms issued this week.  You can also find our comments in relation to impact on insurances especially P&I.

Malumlariniz 16 Ocak 2016 tarihi itibariyla Iran’a uygulanan yaptirimlarin buyuk olcude kalkacagi ilan edildi. Dunya basinindaki genel haberlere bakildiginda İran’a yonelik tum ambargolarin kalktigi zannedildi. Malesef boyle olmadi. Bu yuzden sizlere kisa bir ozet sunmak istedik. ABD’nin iki tur ambargosu var: “primary sanctions” (ABD’li kisilere yonelik) ve “secondary sanctions” (ABD’li olmayan kisilere yonelik.) Oncelikle ABD tarafindan “secondary sanctions” kismen kalkmis olsa da, “primary” olarak adlandirilan ABD’de mukim kisi ve kuruluslar icin ambargolar dolayisi ile banka ve sigortacilik sektorlerindeki etkileri devam etmektedir.  Ustelik hem ABD, hem de Avrupa Birligi ambargolarinin kaldirilan kisimlarinin, Iran Hukumeti’nin JCPOA geregi ihlalinin yakalanmasi durumunda hemen tekrar devreye alinabilecegi ilan edilmistir ve tum sigortacilar ticaret kontratlariniza kisa sureli ihbar ile bu hususun yansitilmasi yonunde tavsiyede bulunmustur.

As you know on 16 January 2016, US and EU announced lifting certain sanctions.  The general news in the media gave the impression that the sanctions were lifted entirely.  Unfortunately no.  That is why we have tried to explain the happenings in brief. US has two sanctions in place: one called “primary sanctions” (applicable for US nationals) and the other called “secondary sanctions” (applicable for non-US nationals).  Although the secondary sanctions have partially lifted, the primary sanctions affecting the US Nationals continue to remain and therefore its effect on insurance and banking. Both the EU and US have made it clear that in the event Iran were to renege on its commitments under the JCPOA, sanctions will promptly "snap back" into place. Members considering entering into contracts involving trading to or from Iran or involving Iranian entities are therefore advised to incorporate language into their contracts providing for termination at short notice in the event of sanctions being reintroduced.

Bu durum Amerika’da mukim bankalari birebir etkilediginden Iran ile baglantili USD transferleri halen gerceklestirilememektedir. Amerika’da mukim olmayan bankalarin ise Iran ile baglantili para transferleri konusundaki tavirlari belirsizdir. Ayni sekilde Amerika’da mukim sigortacilarin da Iran ile baglantili teminat vermeleri soz konusu degildir ve bu durum Grup Kluplerinin pooling sistemi ve reasurorleri arasinda Amerikan sigorta sirketleri olmasi nedeniyle, Grup Kluplerini ve Amerika menseli sabit prim P&I sigortacilarini olumsuz etkilemeye devam etmektedir.  Ote yandan, kara liste olarak tabir ettigimiz OFAC’in SDN listesi ve EU Consolidated List’den bazi kisi ve kuruluslarin isimleri cikarilmis olsa da konu listeler gecerliliklerini surdurmektedir ve bu listelerde ismi bulunan kisi ve kuruluslar ile ticari iliskiye girmek hala yaptirimlarin ihlali sayilmaktadir.

Given the above, US Banks continue to apply sanction procedures against Iranian transactions. The position of non-US banks have not been made clear at this moment.  The fact that in their pooling and reinsurance structure, there are US owned, controlled insurances continue to effect not just the International Group Clubs but also US backed fixed premium insurers.  Although significant deletions were made under the SDN list of US OFAC and EU’s Consolidated list there are still companies and individuals prevailing and additions are being done.

Klup teminati acisindan degerlendirildiginde ise, tum Klupler teminatlari ile ilgili endiselerini surdurmekte ve daha onceden deklere ettikleri İran’la ilgili bir ticaretten dolayi garanti sunabilme problemleri henuz kalkmamistir. Bu hususta pozisyonlarinin ozetlendigi 2011 yilindaki bir Grup Klup sirkuleri ekte ayrica bilgilerinize sunulur.  Tum bu sebeplerden dolayi Iran ile baglantili tasimalarda siz sayin isletmecilerimizin yaptirimlar sigortalari acisindan henuz kalkmamis gibi hareket etmeleri ve yuk baglantisindan once gerekli kontrolleri yapmaya devam etmeleri nacizane onerimizdir.

In respect of Club covers, all clubs continue their concerns and the position in respect of covers continue where their abilities are restricted to provide any guarantees with regard to Iranian trade.  This position, highlighted in detail on a 2011 West of England circular is also attached hereto for your ease of reference. It is therefore our humble recommendation that ship operators to continue their due diligence while fixing their ships on the basis that the sanctions have not been lifted in respect of their insurances.

IRAN: LIFTING OF CERTAIN SANCTIONS UNDER THE JOINT COMPREHENSIVE PLAN OF ACTION (JCPOA)

Published 19 January 2016

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Web-only circular issued by International Group clubs

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

Lifting of EU and US secondary sanctions

"Implementation Day" under the JCPOA relating to the curtailment of Iranian nuclear activities was announced on Saturday 16 January 2016. This has triggered the general lifting of the EU sanctions, save where there are prior authorisation requirements in respect of certain materials, which have targeted amongst other things maritime trade with Iran together with the insurance of vessels engaged in such trade and the provision of insurance and reinsurance cover to Iranian vessels and entities.

At the same time there has been a partial lifting of US secondary sanctions measures and prohibitions, i.e. measures and prohibitions on non-US persons and entities. Secondary sanctions will, however, continue to apply to non-US persons where, for example, they knowingly facilitate significant financial transactions with or provide material or certain other support to those Iranian or Iran-related persons that remain or are placed on the SDN List.

US primary sanctions

However, the US Administration has not repealed or relaxed certain primary US prohibitions on US entities engaging with Iranian businesses and persons. Prohibitions on US financial institutions, US dollar transactions, and the provision of insurance by US insurers and reinsurers will remain in place. Despite the lifting of sanctions announced on Implementation Day, US persons will continue to be generally prohibited from exporting goods, services or technology directly or indirectly to Iran, including extending insurance cover to, or paying claims involving, Iran, with the exception of transactions that are exempt or authorised by the Office of Foreign Assets Control (OFAC).

The effect of the continuation of US primary sanctions is wide ranging. For example, it will not be possible for members to engage in Iran trades or with Iranian entities in US dollars and many banks and financial institutions with US interests will either be unable to engage with Iran at all or to a limited extent only. Specifically the continuation of US primary sanctions against Iran will continue to impact upon the ability of US insurers and reinsurers to provide cover to Iranian entities and for claims by Iranian entities or involving Iran trade. Tidewater, a port operating company on the SDN List that is designated by reason of being owned by Iran's Islamic Revolutionary Guard Corps (IRGC), remains on the SDN List (as well as the EU list) after Implementation Day, and transactions by US and non-US persons with Tidewater continue to be sanctionable. Members are therefore strongly advised to check the SDN List available on the website of the US Treasury's Office of Foreign Assets Control (OFAC), as well as the EU Consolidated List, and continue to apply due diligence protocols in respect of trade with Iranian interests.

Potential impact of US primary sanctions on group cover and reinsurance arrangements

The International Group has repeatedly made it clear in its engagements with the US authorities (US Treasury and State Dept.) since 2010 that the primary US sanctions measures affecting US insurers and reinsurers are a significant concern to the Group, given the not insignificant US reinsurer participation on the Group General Excess of Loss programme. These concerns have recently been re-expressed to OFAC. The International Group Sanctions Sub-Committee has been considering the ramifications of the continuation of US primary sanctions, and their impact on the International Group's pooling and reinsurance arrangements. Currently all International Group Club rules provide that the risk of shortfalls in recoveries within the pool, or under the collective International Group reinsurances, remain with the member and the subcommittee is actively looking at possible options to avoid, or mitigate, this risk to members.

"Snap Back" provisions

Both the EU and US have made it clear that in the event Iran were to renege on its commitments under the JCPOA, sanctions will promptly "snap back" into place. Members considering entering into contracts involving trading to or from Iran or involving Iranian entities are therefore advised to incorporate language into their contracts providing for termination at short notice in the event of sanctions being reintroduced.

All Clubs in the International Group have issued a similar circular.

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