Carnival Notifies Travel Associates of Sanctions Obligations

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Carnival has sent out a notice to travel partners and representatives regarding international sanctions regulations and the restrictions on booking travelers from specific regions. The cruise company must comply with the laws set forth by the United States, United Kingdom, and European Union. Similarly, travel agents making bookings for Carnival Cruise Line and all subsidiary cruise companies of Carnival Corporation must adhere to the same legal requirements for the respective cruise brands. “Following the enactment of heightened Sanctions Legislation after the invasion of Ukraine by Russia, a policy was established across all Carnival brands to prohibit the sale of cruises, including through any travel agencies, to residents of Russia, Belarus, Donetsk, Luhansk, Kherson, and Zaporizhzhia in Ukraine,” stated the email notification.

Cruise Ships in St Petersburg, Russia — Photo Credit: Stanislav Samoylik / Shutterstock

Russia’s intervention in Ukraine took place on February 24, 2022. Subsequently, cruise lines promptly began canceling stops at Russian ports – visits that are currently on hold due to ongoing tensions. The US, UK, and EU have all imposed economic sanctions on Russia and its associated territories. In the US, these sanctions fall under the jurisdiction of the Office of Terrorism and Financial Intelligence within the US Department of the Treasury, Office of Foreign Assets Control. These financial restrictions are designed to directly impact the Russian economy with the aim of influencing warfare strategies and other belligerent activities. While a cruise may appear to be an innocuous transaction unrelated to weaponry, training, or other direct aggressive endeavors, it’s essential to recognize that a cruise contributes to the local economy by supporting businesses such as retailers, hotels, restaurants, travel agencies, tour operators, and more, even beyond the designated ports of call. This advisory is relevant to all cruise lines under the Carnival Corporation & plc umbrella, including Carnival Cruise Line, Princess Cruises, Holland America Line, Costa Cruises, Cunard Line, P&O Cruises, P&O Cruises Australia, and the luxurious Seabourn. Additionally, the directive extends to other regions currently subject to economic sanctions, such as Cuba, North Korea, Iran, Syria, and Crimea in Ukraine. “You must continue to ensure that bookings from guests residing in any Restricted Countries/Regions are not accepted,” confirmed the email. “We emphasize the importance of accurately inputting guest residency details into our booking systems; specifically, collecting and correctly entering each guest’s residential address at the time of booking,”

Carnival Spirit Departing Florida (Photo Credit: NAN728)

Travel partners and agencies associated with Carnival Corporation & plc must also ensure they have proper technical safeguards in place to prevent individuals from restricted regions from making online bookings through portals or websites. Also Read: How the Cruise Industry Is Affected by Russia’s Invasion of Ukraine All financial and legal divisions, individual agents, and customer-facing personnel must be educated about these constraints to ensure full compliance.

Potential Ramifications of Non-Compliance

The communication from Carnival Corporation & plc does not specify the penalties for any travel partners who facilitate bookings from restricted areas. However, the US Department of the Treasury indicates that “civil fines of up to $250,000 or twice the transaction amount may be administratively imposed on those who violate, attempt to violate, conspire, or enable a breach” of the relevant constraints. It is conceivable that Carnival might terminate a partnership with an agency or impose financial penalties, including commission reductions, if such violations are detected, though specific consequences have not been confirmed. Thankfully, given that Carnival Corporation is experiencing a surge in bookings and stock growth, there is no justification for travel partners to consider disregarding the sanctions, as there are countless other avenues to offer wonderful cruise experiences to enthusiastic travelers.

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