New York’s financial regulator has asked 20 non-US reinsurers whether they conducted business with entities linked to Iran, as part of a review of these companies’ ability to comply with a new US sanctions law that becomes effective Monday.
The New York’s Department of Financial Services wrote to the companies after learning that three insurers had issued coverage that applied to trades with Iran, according to a copy of the letter seen by Reuters. The three firms could not be identified.
The letter from Superintendent Benjamin Lawsky’s office, dated June 25, was sent to companies including Swiss Re, Lloyd’s of London and Hannover Re.
The New York regulator also asked the reinsurers to provide details regarding any business they have done with Switzerland-based commodities giants Glencore Xstrata and Trafigura that will continue after Monday.
The letter cites news reports that Glencore and Trafigura had supplied thousands of tons of alumina to an Iranian firm that provided aluminium to Iran’s nuclear program.
Glencore declined to comment on the letter. A Trafigura spokeswoman said in a statement to Reuters that the company is compliant with national and international law where applicable.
A Glencore spokesman had said in May the company broke no regulations and did not violate the sanctions.
