Jordan Insurance v AIG litigation – do US sanctions prevent reinsurance payouts?

AIG.jpgAIG Europe Ltd has argued in the Commercial Court in London that it cannot pay 414,000 Jordanian Dinars (US $584,000) in reinsurance cover to the Jordan Insurance Company for money said to have been stolen in 2013 from a Syrian bank (International Bank for Trade and Finance Ltd), because that payment would breach US sanctions on Syria.

AIG argues that the payment would be a prohibited transaction because it would have to involve US-based banks (the reinsurance contracts stipulate for claims and premiums to be paid in US dollars), constituting the supply of services from the US to Syria, or the receipt in Syria of the benefit of such services. Judgment awaited.

This entry was posted in English court cases, Syria, USA by Maya Lester QC. Bookmark the permalink.

About Maya Lester QC

Maya Lester QC has a wide ranging practice in public law, European law, competition law, international law, human rights & civil liberties. She has a particular expertise in sanctions. As the most recent (2016) Chambers & Partners directory put it, she "owns the world of sanctions". She spent 2011-12 in New York at Columbia Law School lecturing and writing on sanctions. She represents and advises hundreds of companies and individuals before the European and English courts and has acted in most of the leading cases, including Kadi, Tay Za, Central Bank of Iran, NITC and IRISL.

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