US Sanctions Advisory Raises Hurdles for Global Maritime Industry
Ship owners and insurers say it may be impossible for the maritime industry to fully comply with the Trump administration’s new guidelines on how to avoid sanctions penalties related to Iran, North Korea and Syria, raising the risk of disruptions in a sector already struggling with the fallout of the coronavirus outbreak.The advisory issued this month marked the first U.S. sanctions guidance for the global maritime sector, and will test Washington’s ability to clamp down on violations without disrupting an industry that handles 90% of the world’s trade.The final version of the U.S.
US Maritime Sanctions Advisory: Navigating Choppy Waters
In May 2020, the US Department of State, US Department of the Treasury’s Office of Foreign Assets Control (OFAC), and US Coast Guard issued a joint Sanctions Advisory for the Maritime Industry. The advisory builds on and expands several prior sanctions advisories for the maritime community issued in 2018-19.The advisory is intended as a guidepost to help participants in the maritime sector achieve the desired level of compliance. Most of the guidance is couched in the language of suggestion (e.g., parties “may wish to consider…”), rather than as a mandate.
