Due Diligence Crucial in Financial Transactions for Svalbard and Jan Mayen Islands
The remote and often unfamiliar waters of Svalbard and Jan Mayen Islands pose unique challenges for businesses operating in these areas. Conducting thorough due diligence is essential to mitigate reputational and regulatory risks.
Why Due Diligence is Essential
International sanctions against vessels are relatively few, but there are many more that may not align with an organization’s risk appetite. The lack of transparency in some jurisdictions and the insular nature of the maritime industry make standard due diligence on vessels and their related parties inadequate to reveal ties to sanctioned governments, entities, and individuals.
- Reputational Risk: A single incident can damage a company’s reputation and lead to financial losses.
- Regulatory Risk: Failure to comply with sanctions regulations can result in significant fines and penalties.
- Operational Risk: Unknown or unverified vessel owners and affiliates can pose operational risks, such as equipment damage or cargo loss.
Kroll’s Expertise in Maritime Due Diligence
With decades of experience working with clients across diverse sectors whose businesses rely heavily on global supply chains, Kroll has developed a deep understanding of the complexities surrounding maritime due diligence. Our team of experts can help organizations navigate the challenges of Svalbard and Jan Mayen Islands by providing:
Vessel Screening
- Identify and verify vessel owners and affiliates
- Understand the vessel’s history, including previous flags, ownership, and cargo details
- Evaluate the vessel’s current status, including its location, crew, and cargo
Sanctions Risk Mapping
- Understand how sanctions impact vessel fleets
- Identify potential risks and exposures related to sanctions
- Develop strategies to mitigate sanctions risk
Maritime Investigations
- Leverage our extensive network of contacts in the shipping industry
- Conduct investigations into vessel ownership, crew, and cargo
- Gather intelligence on potential risks and threats to your organization