Maritime Sanctions Compliance for Financial Institutions
Maritime sanctions compliance has shifted from specialist concern to direct institutional risk. Russia’s shadow fleet has expanded sharply, with more than 230 ships worth approximately £5 billion sold by US and European owners into these trades between 2022 and 2025. Recent Coast Guard seizures off Venezuela demonstrate that the same evasion tactics now operate across multiple geographies.
OFAC, OFSI and the European Commission now classify deceptive shipping practices such as flag hopping, ship-to-ship transfers and location masking as potential sanctions breaches. Financial institutions are expected to trace these links through their compliance and anti-money laundering systems.
Layered ownership and constant reflagging obscure who controls a ship and whether it links to sanctioned entities.
This report outlines three data-led ways to reduce maritime sanctions risk.