How a Leading International Bank Swiftly and Effectively Assesses Maritime Sanctions Risk

Brokering fast-paced deals

When it comes to trade transactions, time is money. So, the faster potential compliance issues can be highlighted, investigated and resolved, the better it is for everyone involved. 

The challenges

Due to the complex and opaque web of entities involved, shipping transactions can be misused to circumvent sanctions. But financial institutions like this prominent global bank are obliged to investigate potential risks for all trades they or their clients are involved in. 

Challenge 1: Getting a clear picture of AIS manipulation The bank needs to know if AIS gaps are related to nefarious activities. If a ship goes ‘dark’, it may be because a captain deliberately turned off the signal to hide their vessel’s location or an interaction with another vessel. To remain compliant, the bank needs to understand whether anything illicit took place, such as a ship to-ship transfer with a sanctioned operator. 

“From a sanctions point of view that would be really concerning. If we were to process that transaction, it could be illegal.”

Spokesman, Leading international bank 

Challenge 2: Understanding trade sanctions risk Screening companies and vessels involved in clients’ trades is vital to see any direct or indirect links to sanctioned individuals or entities. Common examples of this include the fact that ownership is not always included on the bill of lading, sanctions lists can expand without much notice and ships frequently change hands or may be jointly held. If 50% of something is owned or controlled by a sanctioned party, then it is subject to the same sanctions. 

The solution

Seasearcher sifts through the myriad concerns raised by AIS data to quickly highlight potential involvement with sanctioned entities. It filters out anomalies, while red flagging verified concerns that need further investigation. 

Seasearcher simplifies compliance by: 

• Checking updated records for links to sanctioned entities.
• Modelling AIS gaps and projects vessel tracking through dark periods.
• Assessing proximity of vessels during dark periods.
• Highlighting draught changes indicating ship-to-ship transfers.
• Alerting on AIS spoofing activity.
• Providing real-time data via an easy interface.
• Using continuously updated, trusted data to highlight sanctions concerns quickly.

“It has improved the turnaround time and how long we hold transactions pending an investigation. Because information about risk is articulated so clearly for analysts, they can resolve each transaction much more quickly.”

Spokesman, Leading international bank 

Quality data leads to better results  

We estimate that the bank realised the following improvements by leveraging Seasearcher: 

1. Reduced time on per trade screening
2. Many more trade checks are performed each month
3. Dramatically improved accuracy and efficiency for trade finance workflows

The simplicity of Seasearcher’s interface and traffic light system means that even junior level analysts can swiftly assess situations in real time. By inputting vessel name, IMO, LLI or MMSI, users are able to perform sanction screens quickly. Results from these screens include critical factors such as ownership, flag or registry checked against current sanctions lists from OFAC, EU, UN, HM Treasury, Canada, Switzerland and Australia.  

In fact, users can access unparalleled data that includes vessel names, flags, characteristics, ownership, movement data and compliance risk indicators that they would be keen to better understand. It filters the many potential red flags, projecting tracking through dark AIS gaps and analysing draught changes to highlight those which merit investigation. 

Rather than spending hours or days verifying documentation, checking ownership and investigating transactions, these details can be seen and assessed instantly.