MENU
Sanctions Compliance Policy

Sanctions Compliance Policy

I. Introduction

Diana Shipping Inc. and its wholly owned subsidiaries (the “Company”) is committed to carrying on its business in accordance with the highest ethical standards. This includes complying with all applicable trade sanctions laws, rules and regulations (“Sanctions Laws”) in the jurisdictions in which it operates.

II. Policy Applicability

This Sanctions Compliance Policy (“Policy”) applies to all directors, officers, contractors, and offshore and onshore employees of (1) the Company; (2) affiliates and entities that regularly provide management services to the Company (“Related Parties”); and (3) any person or entity (and their respective employees, officers and directors) performing duties for, providing services to, or acting on behalf of the Company (each a “Third Party”) (collectively, the Company, the Related Parties, and Third Parties are referred to as “Covered Persons”).

Contracts and agreements executed between the Company and/or Related Parties and Third Parties may contain more specific provisions addressing some of the issues set out in this Policy. Nothing in this Policy is meant to supersede any more specific provision in a particular contract or agreement executed between the Company and/or Related Parties and a Third Party, and to the extent there is any inconsistency between this Policy and any other provision of a particular contract or agreement, the provision in the contract or agreement will prevail.

III. Policy Statement on Sanctions

It is the Company’s policy to comply with all Sanctions Laws in its operations worldwide. To this end, the Company will comply with all Sanctions Laws applicable to its business activities.

This Policy is intended to help each Covered Person acting on the Company’s behalf to understand where breaches of Sanctions Laws might arise and to support them in making the right decisions in line with the corporate position as stated in this Policy.

No Covered Person shall suffer as a consequence of bringing to the attention of senior management or the Chief Corporate Development, Governance & Communications Officer, in good faith, a known or suspected breach of this Policy.

IV. Policy Enforcement

The Company’s board of directors has overall responsibility for ensuring this Policy complies with its legal and ethical obligations, and that all those under its control comply with it.

The Chief Corporate Development, Governance & Communications Officer has primary and day-to-day responsibility for implementing this Policy, monitoring its use and effectiveness, dealing with any queries about it, and auditing internal control systems and procedures to ensure they are effective.

V. Meaning of Sanctions

Sanctions Laws enacted by governments (such as the government of the United States (“U.S.”), international organizations (such as the United Nations (“U.N.”) and supranational bodies (such as the European Union (“E.U.”)) to promote foreign policy and other objectives, including:

  • limiting the adverse consequences of a situation of international concern (for example, by denying access to military or paramilitary goods, or to goods, technologies or funding that enable international terrorism or the proliferation of weapons of mass destruction);
  • seeking to influence other persons or governments to modify their behavior; and
  • penalizing other persons or entities (for example, by blocking or “freezing” their assets, or denying access to international travel or to the international financial system).

Sanctions Laws are intended to deter a range of activities, which may include political or military aggression, providing sanctuary for criminals and terrorists, developing nuclear or other weapons programs, and abusing human rights.

Sanctions Laws are implemented largely by prohibiting companies and individuals from doing business with persons, entities, countries and governments that are the targets of the sanctions. Such restrictions can include:

  • export bans, import bans and prohibitions on the provision of certain specified services;
  • prohibiting certain commercial activities (such as joint ventures and other investment);
  • barring the transfer of funds to and from a sanctioned country;
  • targeted financial sanctions, which include freezing the assets of and prohibiting any dealings with a government, country, or territory, and designated entities and individuals;
  • travel bans; and
  • other financial restrictions.

One key method of imposing Sanctions Laws is to designate a country, territory, government, individual or entity as a target of a particular sanction (a “Sanctions Target”). For example, the United States publishes a list of Specially Designated Nationals (or “SDNs”), which includes individuals and entities. In general, persons subject to U.S. jurisdiction must block (or freeze) any assets of an SDN within the U.S. person’s possession or control, and may not have any dealings with, or provide any services to, an SDN. The United States also imposes economic sanctions and embargoes that target geographic regions and governments; some programs are comprehensive in nature and block the government and include broad-based trade restrictions, while others target specific individuals and entities. In non-comprehensive programs, there may be broad prohibitions on dealings with countries, and also against specific named individuals and entities.

Most Sanctions Laws prohibit actions taken to circumvent applicable sanctions or to facilitate activities by another person or entity that would violate Sanctions Laws if undertaken directly. Covered Persons shall be careful not to inadvertently violate sanctions by facilitating or brokering a transaction that would be prohibited if conducted by the Company. Covered Persons cannot facilitate, swap, approve, finance, or broker any transaction or activity if such transaction or activity would be prohibited if performed by the Company. This prohibition also includes referrals to a foreign person of business opportunities involving any nation subject to comprehensive sanctions or any persons designated on an SDN list.

VI. Policy Violation Risks

Violations of Sanctions Laws may lead to severe civil and/or criminal penalties against companies and individuals, including significant monetary fines, imprisonment, extradition, blacklisting, revocation of licenses and disqualification of directors. In addition, violations of Sanctions Laws can lead to damaging political consequences, including harm to reputation and commercial relationships, restrictions in the way the Company can do business and extensive time and cost in conducting internal investigations and/or defending against government investigations and enforcement actions.

VII. Employee Responsibility

All employees of the Company have the obligation to read and comply with this Policy, to understand and identify any red flags that may arise and to escalate potential compliance concerns relating to sanctions to the Chief Corporate Development, Governance & Communications Officer. You should not take any actions prior to receiving advice and/or instructions.

VIII. Non-Compliance

Any employee or other Covered Person who violates this Policy may be subject to disciplinary action in addition to any other potential actions or penalties resulting from a breach.

IX. Updates, Review and Ownership of this Policy

This Policy is subject to review and update from time to time.