Sentences Of Up To 10 Years For Insurers Or Brokers Breaching Export Control Order

The Export Control Order 2008 is intended to restrict the

international movement of arms or other military goods, and

penalties for breaching these trade controls can be severe and

include an unlimited fine as well as a prison sentence of up to 10

years. Insurers and brokers are caught by the Order if they are

involved in insuring, or arranging insurance, in relation to

actions prohibited under the terms of the Order.

The Export Control Order is enforced by H.M. Customs &

Excise and came into effect on 6th April 2009. Insurance companies

and brokers will be expected to comply with the Order, and must

have structures in place to ensure that the Order is not being

breached. Breaches of the Order can result in criminal penalties

being imposed on individual underwriters and brokers as well as

their employers, including imprisonment for up to 10 years or

unlimited fines.

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Full Article

The Export Control Order 2008 is intended to restrict the

international movement of arms or other military goods, and

penalties for breaching these trade controls can be severe and

include an unlimited fine as well as a prison sentence of up to 10

years. Insurers and brokers are caught by the Order if they are

involved in insuring, or arranging insurance, in relation to

actions prohibited under the terms of the Order. The Export Control

Order is enforced by H.M. Customs & Excise and came into effect

on 6th April 2009. Insurance companies and brokers will be expected

to comply with the Order, and must have structures in place to

ensure that the Order is not being breached.

The Order

The Order prohibits any persons within the UK, or a UK person

anywhere in the world, from supplying or delivering, agreeing to

supply or deliver or doing any act calculated to promote the supply

or delivery of any goods subject to trade controls from one third

country to another third country that is an embargoed

destination.

This catches not only the persons involved in the physical

movement of goods, but also any persons doing acts "calculated

to promote the supply or delivery" of such goods, which

includes insuring or reinsuring such goods, or

"arranging" insurance or reinsurance – this

covers both brokers and underwriters.

The Order controls trade of certain goods to specific

"embargoed destinations", which, for these purposes,

are:

Armenia, Azerbaijan, Burma (Myanmar), Democratic People's

Republic of Korea, Democratic Republic of the...