LONDON--(BUSINESS WIRE)--Iran’s suspected attempt to smuggle weapons through the shipping lanes by hiding the true identity of the ships being used has highlighted flaws in the ability to track and trace the ownership of seagoing vessels.

Thanks to tougher scrutiny, banks, financial institutions and other corporate companies have begun recognising the loopholes that frustrate regulatory bodies such as the US Department of the Treasury in their attempts to identify the true ownership of shipping fleets.

More importantly financial institutions have recognised that vessel identification is a major challenge to managing risk. They also see the importance of ensuring that a ship carrying their cargo or that is under their ownership is not blacklisted – and it’s all thanks to Complinet’s latest technology.

Complinet’s Vessel Data Screening software (VDS), developed in partnership with IHS Fairplay, formerly Lloyd’s Register-Fairplay, helps companies manage and mitigate the risk of their name being associated with flagged, blacklisted or ‘wanted’ vessels and the consequences of being linked to one.

VDS scans a ship’s IMO number – the one identification on every vessel that can never be altered – ending the concern companies faced from ships changing names and paperwork to avoid detection.

In addition, VDS also allows you to search on current and previous vessel names ensuring even if the IMO number is not readily available, you will still find the ship and have the ability to scan these names against the US Treasury’s SDN (Special Designated Nationals) as well as other sanction and enforcement lists.

The new technology reduces cost and time when assessing a vessel, helping companies in their decision making as the process takes five minutes instead of the four hours that used to be involved.

If caught using or trading with a sanctioned vessel, any money involved in the partnership can be frozen and the assets impounded – which is why VDS is being viewed as the latest tool in managing risk.

Richard Russell, Group Director Information Services at Complinet said, “The impounding of a vessel in a port can cost a company in excess of $1m a day, so any assets frozen act as a huge deterrent to the business of chartering vessels and the potential loss to the organisation chartering the vessel is enormous. Complinet’s new technology encourages companies not to operate in ignorance.”

Launched four weeks ago, VDS has been many months in the making, with a lot of time invested in the feedback from experts in the shipping and regulating market.

For more information on Complinet’s Vessel Data Screening software: www.complinet.com/connected/solutions/global-screening/vessel-data/

About Complinet

Complinet is a leading online provider of connected risk and compliance solutions to the global financial services community.

Complinet's cost-effective range of services includes a 'complete' service that delivers insight and interpretation of regulatory risks and developments. Our portfolio also helps firms to screen their clients, manage their policies and train their staff.

Complinet was founded in 1997 and employs more than 200 people in its offices in New York, London, Sydney, Singapore and Dubai. Every day, industry professionals in more than 1,900 firms across 81 countries rely on Complinet as their information partner for ongoing analysis and solutions that help them keep pace with changing regulations.