{"id":1481,"date":"2025-07-02T12:00:11","date_gmt":"2025-07-02T12:00:11","guid":{"rendered":"https:\/\/beijingcareer.com\/?p=1481"},"modified":"2025-07-02T18:25:32","modified_gmt":"2025-07-02T18:25:32","slug":"lma-launches-new-model-clause-to-boost-sanctions-compliance-in-re-insurance-contracts","status":"publish","type":"post","link":"https:\/\/beijingcareer.com\/index.php\/2025\/07\/02\/lma-launches-new-model-clause-to-boost-sanctions-compliance-in-re-insurance-contracts\/","title":{"rendered":"LMA launches new model clause to boost sanctions compliance in re\/insurance contracts"},"content":{"rendered":"<p>The Lloyd\u2019s Market Association (LMA) has launched a new model clause, LMA5670 \u2013 General Sanctions Financial Crime Documentation Clause, designed to strengthen sanctions compliance in reinsurance and insurance contracts.<\/p>\n<p><img loading=\"lazy\" class=\"alignright wp-image-90958\" src=\"https:\/\/beijingcareer.com\/wp-content\/uploads\/2025\/04\/lma-lloyds-logo.png\" alt=\"lma-lloyds-logo\" width=\"360\" height=\"202\" \/>This measure aims to empower re\/insurers and brokers in navigating the increasingly intricate and rapidly evolving landscape of sanctions and finance crime regulations.<\/p>\n<p>The new clause introduces a contractual obligation for re\/insureds to provide documentation upon reasonable request, particularly to deal with situations where such obligations arise mid-contract.<\/p>\n<p>In turn, this ensures that the market has the tools to adapt swiftly to the ever-changing international sanctions environment.<\/p>\n<p>The clause is intended to provide insurers and brokers with an added layer of protection and to \u201cfuture-proof\u201d their contracts by:<\/p>\n<div class=\"reins-in-every-article\" id=\"reins-1471609030\">\n<div data-reins-trackid=\"107022\" data-reins-trackbid=\"1\" class=\"reins-target\" id=\"reins-780112870\">\n<p><a href=\"https:\/\/www.artemis.bm\/artemis-london-2025\/\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" class=\"size-full wp-image-999999 aligncenter\" src=\"https:\/\/beijingcareer.com\/wp-content\/uploads\/2025\/06\/artemis-london-2025-banner-eb1.jpg\" alt=\"Register for the Artemis London 2025 cat bond and ILS market conference\" width=\"728\" height=\"100\" \/><\/a>&lt;!&#8211;<a href=\"https:\/\/www.artemis.bm\/artemis-ils-market-reports\/\" target=\"_blank\" rel=\"noopener\"><img class=\"size-full aligncenter\" src=\"https:\/\/beijingcareer.com\/wp-content\/uploads\/2025\/04\/catastrophe-bond-ils-market-report-q1-2025-728x90-2.png\" alt=\"Download free catastrophe bond market reports from Artemis\" width=\"728\" \/><\/a>&#8211;&gt;<\/p>\n<\/div>\n<\/div>\n<ul>\n<li>Giving contractual rights to access documentation from their insureds as necessary to confirm no exposure to sanctions or financial crime regulations;<\/li>\n<li>Minimising the burden on re\/insureds by limiting such requests to information that is reasonably required, accessible through best efforts and not outside their control; and<\/li>\n<li>Automatically discharging the contract in cases where the insured has not cooperated appropriately \u2013 aligning with recent requirements from the UK authorities.<\/li>\n<\/ul>\n<p>Arabella Ramage, Legal and Regulatory Director at the LMA, commented: \u201cThis clause is a practical and proportionate response to the increasing demands placed on our market by sanctions legislation. It provides clarity and contractual certainty for all parties, while ensuring that compliance obligations can be met without unnecessary disruption. Importantly, it also recognises the critical role of brokers in the compliance chain, giving them the tools they need to act responsibly and effectively.\u201d<\/p>\n<p>The clause has also been designed to work alongside existing sanctions clauses such as LMA3100A and LMA3200. Additionally, it includes safeguards to ensure that re\/insureds are not penalised for non-compliance due to circumstances beyond their control.<\/p>\n<p>As the clause is a new tool for the market, it is complemented with a guidance note and FAQs.<\/p>\n<p>The post <a href=\"https:\/\/www.reinsurancene.ws\/lma-launches-new-model-clause-to-boost-sanctions-compliance-in-re-insurance-contracts\/\">LMA launches new model clause to boost sanctions compliance in re\/insurance contracts<\/a> appeared first on <a href=\"https:\/\/www.reinsurancene.ws\">ReinsuranceNe.ws<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Lloyd\u2019s Market Association (LMA) has launched a new model clause, LMA5670 \u2013 General Sanctions Financial Crime Documentation Clause, designed to strengthen sanctions compliance in reinsurance and insurance contracts. This measure aims to empower re\/insurers and brokers in navigating the increasingly intricate and rapidly evolving landscape of sanctions and finance crime regulations. The new clause [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":852,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[12],"tags":[],"_links":{"self":[{"href":"https:\/\/beijingcareer.com\/index.php\/wp-json\/wp\/v2\/posts\/1481"}],"collection":[{"href":"https:\/\/beijingcareer.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/beijingcareer.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/beijingcareer.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/beijingcareer.com\/index.php\/wp-json\/wp\/v2\/comments?post=1481"}],"version-history":[{"count":3,"href":"https:\/\/beijingcareer.com\/index.php\/wp-json\/wp\/v2\/posts\/1481\/revisions"}],"predecessor-version":[{"id":1484,"href":"https:\/\/beijingcareer.com\/index.php\/wp-json\/wp\/v2\/posts\/1481\/revisions\/1484"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/beijingcareer.com\/index.php\/wp-json\/wp\/v2\/media\/852"}],"wp:attachment":[{"href":"https:\/\/beijingcareer.com\/index.php\/wp-json\/wp\/v2\/media?parent=1481"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/beijingcareer.com\/index.php\/wp-json\/wp\/v2\/categories?post=1481"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/beijingcareer.com\/index.php\/wp-json\/wp\/v2\/tags?post=1481"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}