ICC gives sanctions clause guidance: ICC has noted banks face increasing difficulty in agreeing the text of sanctions clauses within financial instruments as the international sanctions landscape becomes more complicated. Its banking unit has published guidance on the issues that are arising with suggestions as to how banks could address them. Clearly legal obligations to comply with sanctions restrictions may override suggested ICC wording. Problems commonly arise where one bank seeks to impose its internal controls on another bank (which cannot know the controls of the first), or to impose obligations that go further than the law applicable to the other bank. ICC recommends that banks should not issue trade finance-related instruments that include sanctions clauses that purport to impose restrictions beyond, or conflict with, the applicable statutory or regulatory requirements. It also says that, if practitioners bring into question the irrevocable, independent nature of the credit, demand guarantee or counter-guarantee, the certainty of payment or the intent to honour obligations, they could eventually damage the integrity and reputation of letters of credit and demand guarantees, which may have a negative effect on international trade. (Source: ICC Gives Sanctions Clause Guidance)