The subject of fraudulent ship registrations is a “hot topic” with far-reaching implications, including for maritime safety and security, pollution, seafarers’ welfare, and international legal compliance in general.
There have been numerous cases related to the fraudulent use of a country’s flag and to the fraudulent operation of a registry without the purported flag country’s permission or knowledge.
An unknown number of additional “false” flagged ships could be in operation but remain to be identified.
Some registries are considering that it would be worth examining the “loopholes in the international ship registration system” which are being exploited by perpetrators of such fraudulent acts.
IMO’s data from a submitted report in April 2024 shows that at 34 years, the fraudulently registered ships are on average 12 years (53%) older than the world fleet, which has an average age of 22 years.
Fraudulently registered ships are smaller than the global average, with 8,803 gt compared to the global average of 14,582 gt.
The majority of the identified fraudulently registered ships are oil tankers and general cargo ships.
Issues related to ship registration, flagging and ownership are complex and diverse, and the interpretation and enforcement of relevant laws and regulations can vary from one country to another.
There is currently no single specific international instrument or treaty that contains a standardized and universally accepted definition of “fraudulent ship registration.”
However, in the report submitted to the International Maritime Organization (IMO), fraudulent registry is defined as an unauthorized body or entity that intentionally misrepresents that it is authorized for the registration of ships on behalf of the flag State.
On the other hand, fraudulent registration of a ship means the intentional misrepresentation of information and documentation by which a ship is purportedly given its nationality without authorization by the government of the misrepresented flag State.
That means that a vessel, formerly entitled to fly the flag of a given State, continues to fly that flag after the vessel’s registration with the flag State has expired or has otherwise been terminated.
Furthermore, a fraudulent documentation is being submitted to the International Maritime Organization (IMO), without the knowledge of the cognizant flag State authority, in order to obtain IMO documentation and ship identification numbers.
The fraudulent registration companies may operate with authentic‑looking websites and claim to be the official registration offices authorized to grant to ships the nationality of the State concerned.
Fraudulently registered ships may not be compliant with safety and environmental protection standards, thereby endangering the ships’ crew because they are often very old ships.
Several cases have been reported of abandonment of seafarers on board “false” or fraudulently flagged ships.
Seafarers are not commonly aware of whether a ship on which they are engaged is fraudulently registered. When shipowners engage in fraudulent ship registration to avoid adhering to these standards, it can potentially result in seafarers on those ships not receiving proper training or certification.
According to IMO, it can negatively impact the welfare and wellbeing of seafarers, as ships fraudulently registered often have substandard working and living conditions for seafarers, such as long working hours, low pay and inadequate safety measures and other facilities.
In addition, if a ship is suspected of fraudulent registration or non-compliance with STCW requirements, it may face detention or penalties when inspected at ports of other countries.
The problem of fraudulent registration of ships and fraudulent operation of registries was first raised at IMO in 2017 during the 104th session of the legal committee.
The legal committee 109th session established a study group to initiate a comprehensive study to address all issues arising in connection with fraudulent registration and fraudulent registries of ships, and possible measures to prevent and combat them.
The final report of the study group on fraudulent registration and fraudulent registries of ships was submitted to the legal committee’s 111th session in April 2024.
