On 17 October 2014, the Society of Lloyd's issued a bulletin on the use and function of sanctions clauses in (re)insurance contracts. Lloyd’s notes that such clauses (typically providing that no cover is deemed to be in place and no claims will be payable if it would mean that the (re)insurer would be exposed to trade or economic sanctions) are becoming more widely used in policies. Amongst other matters, the bulletin highlights that the use of such clauses does not displace the need for firms to ensure that effective controls (including due diligence) are in place to mitigate the risk of such exposures.