The Asia/Pacific Group on Money Laundering Secretariat, with support from the United Nations Office on Drugs and Crime, has published a non-binding factsheet on proliferation financing risks linked to shipping registries. The paper is intended to help members prepare for the fourth round of mutual evaluations and address emerging regional risks. It sets out why Financial Action Task Force standards, including Recommendation 7 on targeted financial sanctions, apply to shipping registries and related vessel registration and flagging services. The factsheet explains that maritime vessels, insurance, licences and flag rights can constitute assets or economic resources, so jurisdictions must ensure designated persons and entities cannot use shipping registries or related services to evade sanctions. It highlights how flags of convenience, reflagging, false documentation, concealed ownership, ship-to-ship transfers and gaps or inconsistencies in automatic identification system transmissions can be used to support proliferation activity, including by the Democratic People's Republic of Korea. Practical measures highlighted include sanctions screening at vessel registration, fit and proper checks on key personnel and beneficial owners, freezing actions, denial of financial services, and further due diligence and investigation where designated persons or entities may be involved. It also stresses that outsourcing registry operations does not transfer a jurisdiction's obligations under FATF standards and relevant United Nations Security Council resolutions. The publication draws on APG typologies reports, United Nations Panel of Experts reports, national risk assessments, APG regional counter-proliferation financing events and a United Nations Interregional Crime and Justice Research Institute report. APG encouraged members to circulate the factsheet among competent authorities and assess whether their counter-proliferation financing measures are adequate for risks associated with shipping registries.
Asia/Pacific Group on Money Laundering (APG)2025-03-10
Asia Pacific Group on Money Laundering publishes shipping registries proliferation financing risk factsheet for fourth round evaluations
The Asia/Pacific Group on Money Laundering has issued a non-binding factsheet on proliferation financing risks in shipping registries to support members' fourth round mutual evaluation preparation. It explains that FATF standards and targeted financial sanctions obligations apply to vessel registration and flagging, and outlines controls such as sanctions screening, ownership checks and follow-up investigation. APG also urges members to review whether their counter-proliferation financing measures are adequate for these risks.