Perspectives on Evaluating Potentially Unusual Vessel Behavior

BAFT’s Trade Compliance Working Group (a subset to the BAFT Trade Compliance Committee), looks to bring awareness to risks associated with ocean-going vessels and their potential connection to financial crimes.  

While banks offering trade finance products likely have a working knowledge of shipping documentation, staff may be less familiar with the details surrounding the maritime shipping industry — which can pose challenges when shipments or transactions are flagged as unusual and compliance issues arise. 

This paper hopes to provide bankers with a rudimentary understanding of maritime shipping, highlight how financial institutions should examine inherent risks in their trade portfolios, evaluate the need for control adjustments and look to create new risk mitigation techniques.