ICC releases guidelines on sanction clauses

The International Chamber of Commerce(ICC) has announced guidelines on sanction clauses in trade related products.

ICC Sri Lanka warns banks to be careful in using sanction clauses in their transactions as a measure to prevent money laundering and similar abuses.

ICC Sri Lanka CEO, Gamini Peiris told Daily News Business that ICCSL has sent these guidelines to all banks in Sri Lanka.

Sanctions are imposed by the United Nations, the Council of the European Union or individual countries to prohibit dealings with specific countries, persons, ships, aircraft or goods, especially with respect to import and export licensing of technology or controlled goods.

"The guidance paper does not aim to discuss the sanctions policies of nations, nor their application, only the effect on the instruments in question," ICC Task Force on Anti-Money Laundering Chairman, Neil Chantry said.