Nuclease required for the repair of DNA interstrand cross-links (ICL) recruited at sites of DNA damage by monoubiquitinated FANCD2. Specifically involved in repair of ICL-induced DNA breaks by being required for efficient homologous recombination, probably in the resolution of homologous recombination intermediates (  , ). Not involved in DNA double-strand breaks resection (, ). Acts as a 5'-3' exonuclease that anchors at a cut end of DNA and cleaves DNA successively at every third nucleotide, allowing to excise an ICL from one strand through flanking incisions. Probably keeps excising with 3'-flap annealing until it reaches and unhooks the ICL . Acts at sites that have a 5'-terminal phosphate anchor at a nick or a 1- or 2-nucleotide flap and is augmented by a 3' flap . Also has endonuclease activity toward 5'-flaps ( ).
Subcellular locations: Nucleus
Localizes at sites of DNA damage following recruitment by monoubiquitinated FANCD2 (, ). Localizes to stalled replication forks via its UBZ4-type zinc finger .