Negotiating Financing Agreement Provisions to Manage Risk Under Anticorruption, Anti-Money Laundering and Economic Sanctions Laws

As enforcement of anticorruption, anti-money laundering and economic sanctions requirements has intensified, lenders have seen loan agreement provisions as an increasingly important tool to protect their interests. For example, lenders have observed—or experienced—US authorities imposing billions of dollars in penalties against European banks for alleged violations of US OFAC sanctions. At the same time, borrowers are increasingly concerned about more far-reaching representations and commitments that lenders are seeking from them.

• What are the most common trade-related provisions in financing documentation?
• How can these provisions effectively protect lenders against liability and enhance prospects for loan repayment? 
• In what circumstances might these provisions be over-reaching?

Harry Clark, head of Orrick's International Trade & Compliance group, Bill Haft, head of the Banking & Finance group, and Inessa Mirkin Owens, International Trade & Compliance Associate, addressed these questions in our June 15, 2016 webinar. They discussed specific concerns of both borrowers and lenders in representations, warranties and covenants related to economic sanctions, anticorruption, export controls, antimoney laundering laws, and government contracting and provide concrete strategies for managing such risk in lending documentation.

A recording of the presentation is available above.

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