Welcome to the tenth edition of In-Short. In this latest edition of In-Short, we look at some of the issues that have arisen in relation to derivatives with the impending approach of BREXIT; how the US have reacted to the continuation of shipping petroleum from the Middle East; the changes to GAFTA regulations and the practical effect of this on the industry; and cyber security breaches that are affecting our clients.
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OFAC fires shot across the bow of Middle East Shipping Industry
OFAC, together with the US Coast Guard and the US Department of State, has issued a timely reminder of the risks of shipping petroleum products to Syria and Iran. At the same time that it added 9 persons and entities to the SDN list, whom OFAC suspect were involved in the shipment of petroleum products to Syria. Read more.
More than market access: the regulatory impact of Brexit on EU and UK firms
A hard Brexit will not only affect UK firms and gives rise to more issues than just market access. Much attention has been given to the problems which UK firms will face in accessing EU markets in the event of a hard Brexit. However there are a number of less headline-grabbing changes which firms will also need to consider. Read more.
Review of recent Gafta contract amendments
GAFTA have approved the amendment of a number of its standard form contracts, the most significant of which are the removal of the contractual limitation period, or "time bar", in respect of claims for "amounts payable" from GAFTA Arbitration Rules No. 125 ("GAFTA 125"), and the elimination of the express obligation, in GAFTA No 49, for FOB sellers to have cargo ready at any time during the agreed period of delivery. Read more.
Cyber fraud - follow the money
In 2018 we saw clients of all sizes, sectors and domicile affected by cyber-security breaches. Perhaps the most prevalent in the commodities and trading sector was the trend of email hacking and faking. A chain of correspondence between Party A and Party B arranging payment for the sale of goods, for example, is intercepted by hackers who then impersonate the parties using a very slightly altered email address so as not to arouse suspicion. Read more.