The Lloyd’s Market Association has launched a new model clause, LMA5670, aimed at strengthening sanctions and financial crime compliance in re/insurance contracts.

Responding to increasingly complex and fast-moving sanctions regimes, the General Sanctions Financial Crime Documentation Clause gives insurers and brokers contractual rights to request documentation from insureds to confirm compliance. It also enables automatic discharge of contracts where insureds fail to cooperate appropriately, aligning with evolving UK regulatory expectations.

The clause limits documentation requests to what is reasonable and accessible, and includes safeguards for circumstances beyond the insured’s control.

Arabella Ramage, legal and regulatory director at the LMA, said the clause offers “clarity and contractual certainty” while supporting brokers’ compliance roles.

The clause is designed to complement existing sanctions clauses and is accompanied by a guidance note and FAQs.

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