What Protective Clauses Does a Confirming Bank Require Before Adding Its Confirmation? A reader recently asked whether a confirming bank typically requires an issuing bank to incorporate protective clauses into a documentary credit before agreeing to add its confirmation. The question focused on clauses relating to sanctions compliance, force majeure, fraud or illegality, and country and transfer risk. This is an interesting practical question because, in international banking practice, confirming banks generally … Read More
Sanctions vs. Honour: What If the LC Has No Sanctions Clause? Intro In today’s trade finance world, sanctions compliance has become a minefield. Banks may find themselves caught between UCP obligations on one side and sanctions laws on the other. A recently raised a thought-provoking question — what if the LC itself says nothing about sanctions, yet the documents reveal shipment from a sanctioned port or on a sanctioned vessel? Here’s … Read More