What is fraud? International trade operations in many semi-exporter, the importer, the ship's owner, charterer, master of the vessel, officers and crew, insurance, banker, broker or freight forwarder. Maritime fraud occurs when one of the parties unfairly favoring other goods or money. In some cases, several of these parties attest to defraud others of collusive behavior. Banks and insurers are often the victims of such scams.
The sinking ship provided over into a high-value non-existent cargo at regular intervals. In periods of economic and political upheaval and depression, the shipping business, events were unusual losses. In the past few years, these and other factors have led to a significant increase in the number of incidents that can be called "maritime fraud."
The types of fraud
Maritime fraud in many of its manifestations and methods open to endless variations. The majority of these crimes can be divided into four categories, such as:
o scuttling ships
o Documentary fraud
o Cargo Thefts
o Fraud in rental boats
scuttling ships
also known as "rust bucket" fraud, it involves fraud against the interests of the meaning of the deliberate sinking ship cargo and hull. The occasional exceptions, these crimes shipowners in a situation where the ship is approaching or at the end of economic life, taking into account the age of the ship, its condition and the prevailing freight market. The offense is intended to the hull insurers alone or against both hull and cargo interests.
For example, the shower may approach it is dishonest exporters and offered to bring the next big freight of ships. The exporter is to arrange the contract and the proposed buyer to open the letter of credit to pay for them in his favor. actually delivered or to be delivered, but the ship owner agrees to supply bills of lading indicate that the goods are loaded on a ship is not goods. bills of lading, together with such other documents as are necessary to negotiate the letter of credit presented to the bank. The banker pay against the documents, not goods. After stating that the cargo description meets the requirements stipulated in the L / C, the bank, under normal circumstances, release of funds under the terms of the L / C
The ship is no longer paid, but non-existent goods leaves port. It does not reach its destination, of course, because they need to lead this lack of cargo immediately to the discovery of the fraud. To avoid this, finally, the ship intentionally sunk in an appropriate place, so as to remove the evidence of a non-existent delivery is too prospect of the end of each test.
The shipowner entering the insurance claim in her hull underwriters and he can share in the revenue from letters of credit from the exporter, so the hapless buyer to proceed losses / non-compliance with the insurance claim to the cargo.
documentary fraud
This type of fraud involving the sale of goods o documentary credit conditions and some or all of the documents specified to be provided by the buyer, the seller to the bank in order to receive payment counterfeited. Bankers' pay against documents. The forged documents to try to cover up the fact that the goods actually do not exist, or that the quality is not ordered by the buyer. If the hapless buyer of goods belatedly aware that no goods arrive, start control, only to find that the ships, or the alleged transport does not exist or some other problem loading port at that time.
Banks deal with documents and goods are not affected them. The bank, which accepts letters of credit under a series of documents, which seems to be a regular on their face, are not bound to the client if the documents turn out to be false or contains false allegations. Thus, the confirming bank is entitled to request documents against the issuing bank and the issuing bank is entitled to receive them from the buyer. Thus, the loss is usually borne by the buyer.
This is precisely to discourage the export-related activities of fraudsters cargo ship that formed GIC approval system. This has been extended to a full load of cargo is imported. The boats usually used by fraudsters: -vessels
flags of convenience
vessels
for 15 or 20 years of age
-Usually small vessels 7,000 GRT 10000
[19459002vessels] for having changed their names and owners a few months before the last trip.
Cargo thefts
many versions of the operating mode of the cargo thefts. In a typical example, the ship, having loaded a cargo, and a different path to a port convenience. Such ports of Tripoli, Beitun, Almina, Jouneih, Ras Salaata and others along the coasts of Greece, Lebanon and Suria. The cargo can only discharges and the wharf or in a more sophisticated manner. Such an act is often accompanied by c changed to the name or subsequent scuttling of the ship to hide the evidence of the theft. The whole process of investigation proved difficult as the time of the loss is known, the cargo disappears and the actual recovery products is unlikely. The owners of such vessels are "on paper" set a few days before the surgery.
related fraud rent boats
This is also known as Charter parts fraud. "Creating the rental company is obliged to modest initial financial commitment and are usually subject to little regulation. Depressive conditions shipping market, there is no need for tonnage and the owners are anxious to be avoided in their boats tend to charter them without unknown companies require substantial financial performance guarantee of the lease.
cheat rented turn this situation to his advantage. Having rented a boat on an unsuspecting owner, chartered canvases cargo, knowing that in a depressed economy, shippers will be willing to cut corners in hopes of reducing transport costs and making savings on freight to those goods more affordable tenant provides a basic low freight charges prepaid . you can afford to do as he has no intention of completing the journey.
Shortly after the ship sails in the port of Chartered disappear. You may have paid the first month's rent or maybe you have not paid rents that are due to him. Meanwhile, the ship's owner finds himself meeting with major accounts of the port authorities, ship's itinerary, as well as staff salaries availability and use of the ship. Even worse, you may find that the owner of the ship to ship, failing to load the recipients, they have been arrested, and this leads to lengthy and expensive legal wrangle.
In order for the goods to the destination, suppliers also undertake to pay the shipping plus or agree to cover the costs of diversion and sale of the goods, and then enter the export process from the beginning. Sometimes, when there is no such compromise can be reached, the owner instructs the master to divert his ship and sell the cargo, where it can, and it will be as much a criminal as a tenant.
Prevention precautionary fraud
There are sea against certain basic precautions fraud that commercial interests as an exporter and importer, should be banks and insurance companies, aware and be able to to implement.
exporters and importers
controls and precautions to buy, and sellers can implement the following:
o Caution should be exercised when dealing with unknown party for the first time. Careful studies need to be fixed and their integrity before a binding agreement.
o be proven delivery boat service. In India, GIC approved by ships should be preferred.
o the cargo owners to take care of
- – If the freight is too attractive
– If the shipowner is owned by one of the ship's only9 & # 39; singleton)
– If the boat has more than 15 years old.
– If the ship passed through the various owners.
o Payment irrevocable, confirmed the bank's sale country provides the best assurance of the seller. If the seller has any doubts about the authenticity of the letter of credit, he immediately contact your bank before parting with the goods.
o As for the buyer, it must be ensured that receives the documents he provided in his letter of application.
o as far as the buyer, you need to ensure that he receives the documents stipulated film credit application. Therefore, the buyer must be examined carefully to see which documents are required. For example, an independent "certification loading" significantly increase the protection would be detailed guidance to shipping or freight forwarder to use it. It must be on board at the time of loading of controlling shipments close as possible.
o order to ensure that the theme of cargo is actually loaded in the specified ship, the buyer may require a "report on the ship" an independent third party.
o Meeting of lading or national lines and need to use the sign of "prepaid" clearly the amount of freight bill of lading.
o services of a reliable and well-known freight forwarders, who are also members of the national associations, should be involved.
o buyers and sellers should try to determine whether the ship charter, and who babblers and the owners and are used only to hire agents and reputable institutions.
Banks
banks should take the following precautions to maritime fraud.
- o make us Bankers Lloyd shipping index. Important points to check with regard to the ownership of the ship, age, size and main position of the vessel when the bill of lading dated.
o If such controls are not considered difficult for the bank, because the amount of work involved, it might be a "super service" in additional costs should be considered as an external agent or agents by the actual checks to consumers remains an annual fee.
o It is necessary to examine ways to improve the use of credit operations computerized and modern business methods.
Insurance
The marine insurers have to take the following precautions against fraud.
- o If the name of the ship is not known at the point where the insurance is taken, to insure the Institute Classification Clause and the requirement that the ship carrying the goods comply with the provisions of the clause.
o The insured is obliged to notify the insurers the name of the ship, as it is known. If the ships meet the requirements of clause classifications, paid the standard rate fee. Otherwise, more attracted to the premium of over-age, under capacity, not the classification and registration of FOC.
o In India, exporters are encouraged to "approved by GIC" export cargo ships to carry out. This system also applies if the import cargo ship brings the total import cargo loads India imports vessels in Singapore, Malaysia and the Far East (excluding Japan and China).