The spread of sanctions clauses in letters of credit

Clause for concern


Commercial letters of credit (L/C) are most commonly used in international trade transactions as a trusted vehicle to pay for goods. With an increase in international sanctions, particularly as a result of the continuing unrest in the Middle East, banks issuing financing documents have responded by inserting sanctions clauses into their L/Cs.

The sanctions clauses are designed principally to warn counterparties that sanctions may prohibit the bank from dealing with specific countries, persons or

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: