UK: LETTERS OF CREDIT & SANCTIONS

On 30 June, Hannaford Turner issued an article saying that there has been concern for many years amongst trade finance practitioners and corporates dealing with letters of credit (LC) that both the autonomy and irrevocability of LC are at risk of being undermined through the increasing use of a varied range of sanction clauses.  In the article, the firm says that there are 2 questions – do the sanctions prohibit the issuance, confirmation, extension or payment under the LC; and it the issuing or confirming bank bound by those sanctions?

https://www.mondaq.com/uk/export-controls-trade-investment-sanctions/1199770/letters-of-credit-sanctions

Any modest contributions for my time and ongoing expenses are welcomed!  At Buy me a Coffee one-off contributions start as low as $3, at

https://www.buymeacoffee.com/KoIvM842y

NOTE THAT THE ABOVE LINK IS NOW CORRECTED AND WORKS!

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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