The IMO Legal Committee,110th session, that took place 21-26 March, 2023, continued its work on measures to prevent unlawful practices associated with fraudulent registration and fraudulent registers of ships. Such illicit practices undermine the foundation of the overall IMO regulatory regime and several examples were submitted to the Committee for consideration.
IMO informed that the Committee agreed that access to information was key to combating the problem of fraudulent registration and fraudulent registries of ships, and that more information needed to be collected in this regard, to be made readily available to Member States, flag States and port States. In this context, there was broad support in principle for the creation of a database for flag States and port States to share information on fraudulent registration and fraudulent registries of ships.
There was also support for the development of methods for validating the authenticity of ships’ certificates. The Committee agreed that the Secretariat should consult with S & P Global (the designated entity for IMO numbers and tonnage figures) and submit a document to the next session of the Committee describing the different options with regard to the proposed database on fraudulent registration and fraudulent registries of ships, together with cost implications.
Furthermore, the Committee established a correspondence group to:
- define and develop the elements of “due diligence” to be exercised in the process of registration of ships under the flag of a State when involving vessels in the IMO Unique Company and Registered Owner Identification Number Scheme;
- consider the additional factors raised with regard to the abuse of the IMO identification number schemes, how widespread the issue is and the possible loopholes in the system;
- and submit a report to LEG 111.
With regards to ship registration, the Committee also noted a delegation’s intervention of its plans to submit a proposal to review the 1986 UN Convention on Conditions for Registration of Ships. The treaty, which has not yet entered into force, establishes international standards for the registration of vessels in a national registry, including references to the genuine link, ownership, management, registration, accountability and the role of the flag State.
The Committee noted the way forward proposed in the interim report, including examining the correlation between the incidents of fraudulent registration mentioned by certain participants and other fraudulent activities; and examining the prospects of success of certain best practices and actions proposed by the participants to tackle the problem. The Committee encouraged Member States to take part in the study, given the low rate of participation to date (only 31 registries, accounting for 22.75% of the world fleet, responded to the questionnaire).
With regards to the fraudulent use of the IMO identification number schemes , the Committee agreed that more information on the abuse of the IMO number scheme, including how widespread the problem was and whether there were loopholes in the system, should be provided.
