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False flagging doubles in under two years

The number of ships designated as falsely flagged by the IMO’s GISIS database has reached more than 220

A group of 22 countries, led by the UK, has submitted a paper to the IMO’s Legal Committee and suggests new guidelines could be key to helping poorer flag states deter fraudsters

THE number of falsely flagged ships has doubled since March 2023, with more than 220 vessels designated as false flagged in the International Maritime Organization’s Global Integrated Shipping Information System.

That same database in March 2023 showed 110 vessels as false flagged, versus 223 as of January 9, 2025. That’s an increase of more than 100% in just 22 months.

A correspondence group of 22 countries, led by the UK, has submitted a paper to the IMO’s Legal Committee, which attempts to uncover the loopholes being exploited by fraudsters.

The paper said the increase in cases of fraudulent registration and fraudulent registries posed “a real threat to the reputation of the worldwide shipping community and flag states”.

The group found that a “considerable” number of ships appeared to fly two false flags consecutively within a period of one year, the paper said. The majority of fraudulently registered ships were oil tankers and general cargoships.

“This is clear evidence that there is an adverse impact from fraudulent ship registration and fraudulent registries of ships in terms of maritime safety, security, environmental consequences and most importantly the human element, especially seafarers on board ships which are fraudulently registered,” the paper said.

Some members of that group highlighted that so-called “under-resourced flag states” and “changing geopolitical situations” were the main reason flags were being targeted by fraudsters.

The outsourcing of flag administration without a legally binding agreement between the flag state and the external party could also be a key factor in flag fraud.  

The flag states that make up the group said due diligence undertaken largely comprises checking paper applications and information provided against the GISIS database and other sources, including Lloyd’s List Intelligence.

But the group said complex ownership structures, under-resourcing of flags and delays in communication and information-sharing all contributed to the growing prevalence of flag fraud.

While the survey of the group’s members found that many are already sharing documentation throughout the registration process, some said guidelines were needed to “assist flags and developing states in improving registration quality and standards, thereby potentially preventing fraud”.

These guidelines would benefit developing flag states most, the paper said, as the more established flags in the group are already deploying methods to deter fraudsters.

Yet other members of the group doubted the effectiveness of any new guidelines. In addition, the drafting of new guidelines for due diligence wasn’t in the group’s remit, so some group members recommended this work be carried forward to the 112th meeting of the Legal Committee.

Any guidelines or best practices would not be mandatory either, the paper said, but would instead help new or developing registries understand what is required to ensure legitimate ship registration.

Those guidelines should be included on the agenda of the 113th meeting of the IMO’s Legal Committee, the paper said, which is set to take place in 2026.

 

 

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