'Shipping's most turbulent quarter in 50 years' sees IMO add rules to fight rise in flag fraud

Shipping’s global regulator has approved a new set of guidelines that it said will improve transparency and due diligence in ship registration, while preventing fraudulent registrations and misuse of flags.  

The guidelines, from the United Nations’ specialised agency International Maritime Organization (IMO), have come about amid a rise in false flagging practices – when vessels illegally claim or broadcast affiliation with a flag state that did not register the vessel or a registry that is entirely fraudulent.  

"The guidelines help to close a key regulatory gap for the maritime industry, given there is currently no binding international framework to regulate the registration of ships," a statement from IMO said.

Windward: ’Shipping’s most turbulent quarter in 50 years’

British-Israeli maritime intelligence consultancy Windward AI has been tracking the uptick in fraudulent vessel practices and released a report on the activity in Q1 2026, naming the quarter as the most turbulent to hit the maritime sector for half a century. 

Windward data showed that 290 tankers broadcast fraudulent flags during Q1 2026, with 88% of those vessels linked to Western sanctions. The shadow fleet, vessels trafficking in sanctioned trades, also expanded to more than 2,100 vessels over the same period.

"False flagging remains one of shipping’s most pressing regulatory concerns," Windward’s report said. "Some 290 internationally trading tankers were broadcasting fraudulent registry flags as Q1 closed, broadly in line with the 285 identified in Q4 2025. Windward identified 20 fraudulent registries, as defined by IMO."

IMO’s Legal Committee, which produced the new guidelines to combat fraudulent flagging and ship registries, noted that the number of ships flying a false flag had increased since its previous session in 2025, with 529 ships falsely flying the flag of a country in the past year. Nearly 40 member states had seen cases of their flags being fraudulently used by criminal groups without their knowledge or consent, the committee reported.

What will the new IMO guidelines on maritime fraud and misuse of flags do?

According to IMO, the newly approved guidelines will assist new and existing flag state ship registries "by providing practical measures to strengthen verification and due diligence, ensure accurate ownership records, and improve oversight of registration procedures". 

Closing the 113th session of the Legal Committee held in London (13-17 April), IMO Secretary-General Arsenio Dominguez said, “This is a welcome step towards ensuring due diligence in ship registration systems for the benefit of safety, protection of the marine environment and the well-being of seafarers, essential for the safety and security of international shipping. The Guidelines will also aid in eliminating cases of fraudulent registration.”

Specifically, IMO said the Guidelines focus on legislation and enforcement of who can perform registration of ships, procedures for quality assurance in ship registration, due diligence checks for ship ownership and ship identification, as well as eligibility for inclusion in lawful registries and creation of information sources and expansion of information sharing.