Maritime fraud
What is a fraud? An international trade transaction involves several parties, exporter, importer, owner, charterer, master, officers and crew, insurance, banking, broker or agent, freight forwarder. Maritime fraud occurs when a party wrongfully taking another goods or money. In some cases, a number of other parties who act in collusion cheating. Banks and insurers are often victims of fraud.
The collapse of an over-insured vessel that has a highLoad Rating encountered there on a regular basis. In times of economic and political crisis and depression in shipping, there have been cases of unusual damage. In recent years, these and other factors have led to a significant increase in the number of accidents that could be called a fraud Seas. "
Types of fraud
Maritime fraud takes many forms and methods that are open to endless variations. Most of these crimes maydivided into four categories below:
• Scuttling ships
• Forgery
• Cargo Theft
• fraud in connection with the chartering of vessels
Sinking of the supplier
Also known as "cart" fraud involves the sinking of ships in the voluntary pursuit of fraud against the interests of both hull and cargo. With occasional exceptions, these crimes are committed by the owners in a situation where a ship is almost at the end of its economiclife, given the age of the ship, its condition and the prevailing market freight. Crime is an insurer of the hull alone or against the interests of the hull and cargo are addressed.
For example, an exporter dishonest pm broad approach and offer help for his next big load of goods on his ship. The contractor is to arrange a contract and the buyer brought a letter of credit opened in his favor to pay for them. N. goods were actually to be delivered or sent, butOwner agrees to deliver the bills of lading to prove that the goods are loaded on the ship. Bills of lading, together with other required documents are offered to negotiate on the letter of credit bank. The Bank has paid against the documents and not against the property. After the assessment is that the description of the load with the requirements contained in the L / C, the bank, under normal circumstances, pushing the funds under the L / C.
Shipwithout it pays now, but not the existing cargo ships leave port. It should of course not reach the goal, as it would make would be the missing cargo door directly to the discovery of the fraud. To avoid this in mind that the ship was deliberately sunk in an appropriate location so that the testimony of the failure of existing without the prospect of further studies to remove.
Shipowners includes an insurance claim on its hull underwriters, and also receives aPart of the proceeds of the letter of credit from the contractor, leaving the unfortunate purchaser of an insurance claim for damage to stress / non-delivery of its cargo.
Forgery
This type of fraud involves buying and selling of goods or letter of credit terms, and some or all documents that the buyer is offered by a seller to the bank to receive payment have been counterfeited. Salary Bankiers documents. The false documents, attempted to cover up the factthat the goods do not actually exist or are not quality, commissioned by the 'buyer. When the unfortunate purchaser of goods have been aware of the fact that no goods arrived, he started driving the only note that the alleged transfer of ships are either not available or loaded on a second port at the appropriate time.
Banks that deal with documents and not goods, as they are. A bank, on the basis of a letter of credit is a set of documents that appeared to be regularthey are not liable to the customer, if the documents appear to be forged or false statements. This confirmation of the bank is entitled to compensation for such documents by the bank and the bank is entitled to payment to them by the buyer. So the loss is usually borne by the buyer.
It 'just the business of fraud relating to discourage the export of goods, vessels for the GIC approval system has evolved. It isextended at the expense of imports even when fully loaded. Ships normally used by fraudsters are:
Ships a flag
Ships are older than 15 or 20 years
Usually small vessels GRT 7000-10000
Ships, their names and owners a few months before the last trip.
Cargo Theft
There are many variations in the modus operandi of stolen goods. In a typical example, the ship, a cargo was unloaded, to deviate from itspath and put it into an oasis of comfort. These ports are Tripoli, Beitut, Almina, Jouneih, Ras Salaata and others along the coast of Greece, Lebanon and Suria. Load can be emptied and the language on the pier or in a more sophisticated way. Such action is often accompanied by some changes to the name, or a sink next to hide the evidence of theft. The whole research process has proved difficult as the time when the pressure drop are known to disappearand actual recovery of goods, which is unlikely. The owners of these ships is "card companies", established a few days before surgery.
Fraud in connection with the figure of ships
It 'also known as Bill-fraud. "Creating a rental company requires a modest initial financial commitment and is usually associated with poor regulation. In depressed shipping market conditions, there was no doubt about the tonnage and owners want their ships to avoid the temptationcharter companies unknown without the need for significant financial guarantees for the implementation of the lease agreement.
Fraudulent chartered turn the situation to his advantage. He chartered a vessel from an owner unaware, the canvases for the chartered freight, knowing that we are in a weakened economy, shippers will be willing to cut corners in hopes of reducing transportation costs and thus save on transport so that goods can be more advantageous forcharterer provides low rates on prepaid basis. He can not afford to do it, does not intend to complete their journey.
Shortly after the ship sails from port, chartered disappeared. He may have paid the rent on his first month or hire which can cost as a result of not paying. Meanwhile, the owner may be substantial bills to meet with port authorities, with the route of the ship, both for wages and providing ship crew. Worse,The boat owner may find that his ship has not delivered the load of goods detained, and led to lengthy and costly legal battles.
Products that belong to their destination, the sender can accept to pay a premium transportation and they will agree to a diversion and sale of assets to cover the costs and conditions for the export process so that all again . Sometimes, when no compromise could be reached for example, the owner of command of the driver to give his ship and deviationsales load, which can, and is interested in so much of a punishment that the charterer.
Prevention measures to protect against fraud
There are some basic precautions against fraud maritime commercial interests could, exporters, importers, banks and insurance, be aware and should be able to implement.
Exporters and Importers
The checks and precautions that sellers can buy and implement, are as follows:
• Caution should be exercised whenfirst part of strangers. Caution should be examined with reference to their reputation and integrity is done before a binding agreement.
• must be sent via e-society set. In India, approved by ships GIC selected.
• The owners of the cargo should be cautious:
– If the rates are too attractive
– As a ship owner has a only9'singleton ')
– If the ship is more than 15 years.
– If the ship did not exceedthrough several owners.
• Payment by irrevocable letter of credit confirmed by a bank in the country of the seller, which offers the best protection to the seller. If the seller is no doubt about the authenticity of the documentary credit, he immediately consulted his bank before leaving with the goods.
• That the buyer is concerned, it must ensure that he receives the documents he provided in the letter of credit application.
• as a buyerquestion, it must ensure it receives the documents he provided in the letter of credit application. So the buyer to believe that the documents he needed. For example, an independent "certificate of loading would be" significantly to the protection that would be detailed instructions on what the company or agent to use. The inspection of cargo to be closer to the moment on board as possible.
• To ensure thatgoods is actually loaded on the vessel specified the transfer, the buyer may decide that a report "on the ship" an independent third party.
• Conference or national lines, bills of lading must be used and the words "prepaid" for the quantity of goods is clearly stated in the bill of lading.
• The services of a reliable and well-known shippers, who are also members of a national community must be involved.
• Buyers and sellersShould be conducted to determine whether implementation of the charter vessel and talkative and the owners are and if the graph is only through reliable organizations or institutions.
Banks
Banks must take the following precautions against fraud liner.
• bankers should be sent to Lloyd's index. Important points to check the operation of the vessel owner, age, size and the particular position of the vessel at the time the bill of ladingdated.
• If the control is considered difficult for a bank because of the volume of work involved, then maybe a service of "super" at an additional cost to customers should be dealt with effectively controls performed by external agents or brokers who are required to an annual fee.
• Methods should be an improvement in the operations of credit through the use of computers and modern business methods are investigated.
Insurers
Insurers must take the followingmeasures against maritime frauds.
• When the name of execution of the ship is not known at the point where safety is made, the insurance is subject to the rule of classification Institute and the requirement that the ship carrying goods that meet the requirements of this clause.
• The insured is obliged to provide insurers with the application of the ship, when it is known. When the implementation of the vessels that meet the requirements of the classificationsclause, the standard premium rate is charged. Alternatively, additional contributions are clothes for people over age, under-size, format and not registering FOC ship.
• In India, the exporter is encouraged to use the vessels approved by GIC "export of cargo. This regime applies to imports of goods when the ship carrying a cargo full of import and transfer of cargo in India as well as for the import of ships from Singapore, Malaysia and the Far East (excluding Japan, China).