Global trade financing is an increasingly complex task for financial institutions, especially when vessels are involved. Many authorities now expect financial institutions to implement sophisticated controls when it comes to shipping. These include screening and monitoring for potential sanctions violations, trade-based money laundering, and other high-risk transactions.
Recently, the U.S. Office of Foreign Assets Control (OFAC) put out a new advisory describing common deceptive shipping practices. It also recommends a list of due diligence procedures for organizations across the maritime ecosystem to implement.
Given the large volume of transactions and the need for timely processing of transactions, it is not feasible to complete Enhanced Due Diligence (EDD) on every transaction. Financial institutions must rely on a risk-based approach to protect themselves and keep their business on track.
Know Your Vessel: Case Studies in Steering Clear of Sanctions Evasion examines two public examples where standard screening tools failed to identify red flags associated with a vessel involved in a transaction and reviews the resulting risks to the transaction parties.
It goes on to explain how a Know Your Vessel (KYV) process such as considering the vessels’ prior behavior would have flagged the transaction. It ends by describing how KYV can be incorporated into the transaction screening process.
Download the Paper
Featured posts
AI & technology
Why AI is a Maritime Professional’s Best Friend
By Ido Sovran, Chief Data Scientist, Windward Maritime personnel are welcoming AI solutions for a range of reasons, many related to cost savings, just like their counterparts in other sectors. Speaking to CNBC, Steve Chase, consulting leader at KPMG U.S., said: “Leaders are embracing AI to drive material efficiencies for their business and help workers…
By Benny Keinan, Vice President of R&D, Windward “AI had a ‘wow’ moment” in November with the release of ChatGPT, said Sandhya Venkatachalam, a partner at the prominent VC firm Khosla Ventures, which was an early investor in OpenAI, to Vox. She compared generative AI’s progress to the emergence of the internet. “I think this…
Navigating the Challenges of Maritime Supply Chain Visibility
Most carriers are currently unable to provide sufficient end-to-end visibility of maritime shipments. This lack of accurate and reliable information creates significant difficulties in planning and executing operations effectively. McKinsey & Company notes: “They [surveyed supply chain executives] want to have transparency, and want to be able to decide fast, and decide to do the…
Navigating deception: the impact of Russia’s invasion on the maritime ecosystem webinar
Windward’s webinar brought together a diverse group of experts to cut through the noise around the impact of Russia’s war on the diverse maritime ecosystem. Exclusive data from Windward’s Maritime AI™ platform, along with insights from the industry-expert guests, enabled the sharing of unique perspectives. The webinar was filled with actionable tactics and ideas that…
Navigating deception: the impact of Russia’s invasion on the maritime ecosystem
Windward’s webinar brought together a diverse group of experts to cut through the noise around the impact of Russia’s war on the diverse maritime ecosystem. Exclusive data from Windward’s Maritime AI™ platform, along with insights from the industry-expert guests, enabled the sharing of unique perspectives. The webinar was filled with actionable tactics and ideas that…