Issuing Bank Shall Not Be Liable For Any Compliance Or Non-Compliance With The Sanctions

[Dvma]

(X) GOVERNMENTAL AUTHORITIES, INCLUDING BUT NOT LIMITED TO THE U.N. SECURITY COUNCIL, EUROPEAN UNION AND THE
UNITED STATES (THE AUTHORITIES) IMPOSE, OR MAY CAUSE
THE IMPOSITION OF, SANCTIONS AND RESTRICTIONS AGAINST PARTICULAR COUNTRIES, ENTITIES AND INDIVIDUALS. Issuing bank SHALL NOT BE LIABLE FOR ANY COMPLIANCE OR NON-COMPLIANCE WITH THE SANCTIONS IMPOSED by the said authorities.
PARTIES TO THIS LETTER OF CREDIT ARE RESPONSIBLE FOR
INFORMING THEMSELVES ON HOW THESE SANCTIONS WILL
SPECIFICALLY IMPACT THEM.

Can somone explain to me what is the advantages and disadvantages for all parties who are involved in the LC and what is the risk if am as an applicant want to delete this clause but my issuing bank refused to do so

[shahriar]

Sanction clauses are always there, whether you mention it or not. Its more like the law. I count it as merely an warning sign.