TL;DR:
- LSEG (London Stock Exchange Group) and Windward AI have joined forces to utilize Artificial Intelligence (AI) in combating sanctions risks in the global shipping industry.
- Windward’s AI-powered technology will enhance LSEG’s shipping analytics capabilities, providing real-time tracking of over 117,200 vessels globally.
- The technology employs advanced behavioral risk assessment models and AI algorithms to identify indicators of illicit activities, such as turning off tracking devices or visiting sanctioned areas.
- The Russian-Ukrainian War has highlighted the importance of compliance, with 42% of high-risk tankers being Russian-affiliated and engaging in deceptive shipping practices.
- The European Union has recently announced additional sanctions against Russia, including prohibitions on vessels engaged in ship-to-ship transfers and those manipulating their navigation systems.
- This collaboration equips LSEG’s trading and chartering users with effective solutions to assess and mitigate sanctions compliance risks within their daily workflow.
Main AI News:
In a groundbreaking collaboration, the London Stock Exchange Group (LSEG) has partnered with Windward AI to leverage the power of Artificial Intelligence (AI) in addressing sanctions risks within the global shipping industry. This partnership marks a significant step forward in combating illicit activities and enhancing compliance measures.
Windward’s state-of-the-art maritime AI-powered technology will integrate seamlessly with the existing shipping analytic capabilities offered by the LSEG Workspace platform, providing real-time insights. With the ability to track over 117,200 vessels currently navigating international waters, including oil tankers, dry bulk carriers, and container vessels, this advanced technology employs AI algorithms and sophisticated behavioral risk assessment models. By screening against predefined criteria that may indicate illicit activities, it enables the determination of a comprehensive risk profile. Suspicious behaviors such as “going dark” by disabling or altering the AIS tracking device, visiting ports in sanctioned countries, or lingering in restricted areas can now be swiftly identified.
The ongoing Russian-Ukrainian War has underscored the importance of sanctions compliance and the heightened risks associated with it. Data reveals that 42% of high-risk tankers are affiliated with Russia, emphasizing the need for stringent measures. Furthermore, deceptive shipping practices, such as engaging in dark activity and ship-to-ship transfers, have witnessed a significant rise among these vessels, further complicating compliance efforts.
The risk of unintentional sanctions breaches by businesses is an ever-growing concern. To address these evasive tactics, the European Union recently announced its 11th package of sanctions against Russia on June 23, 2023. The measures include prohibiting vessels engaged in ship-to-ship transfers suspected of violating the Russian oil import ban or the G7 Coalition price cap from accessing EU ports. Additionally, vessels failing to notify the competent authority at least 48 hours in advance regarding ship-to-ship transfers occurring within the Exclusive Economic Zone or within 12 nautical miles from a Member State’s coast will also be prohibited from accessing EU ports. Furthermore, vessels manipulating or disabling their navigation tracking systems while transporting Russian oil subject to the import ban or price cap will face similar restrictions.
Fabrice Maille, Head of Shipping & Agriculture at LSEG, affirms the significance of this collaboration, stating, “By integrating Windward’s vessel risk profiling with LSEG’s shipping analytics capabilities, we are equipping our trading and chartering users with the most effective solution to assess and mitigate sanctions compliance risks within the maritime industry as part of their daily workflow.”
Ami Daniel, co-founder and CEO of Windward AI, expresses enthusiasm about the partnership, saying, “We are delighted to join forces with LSEG to provide vital insights into maritime risk—a necessity for all stakeholders involved in maritime trade. In this dynamic environment, it is more crucial than ever for stakeholders to remain informed about evolving risks. By combining our cutting-edge maritime AI technology with LSEG’s comprehensive market data and extensive reach, we are strategically positioned to revolutionize risk management in the maritime domain. Our collaborative efforts will empower stakeholders with actionable insights, enabling them to navigate the complexities of global trade risk with confidence.“
Conclusion:
The partnership between LSEG and Windward AI marks a significant advancement in the fight against sanctions-busting in the global shipping market. By leveraging AI-powered technology and advanced risk assessment models, the collaboration enhances the ability to identify and mitigate illicit activities. This development is crucial for businesses operating in the maritime domain, as compliance with sanctions regulations becomes increasingly complex. The integration of Windward’s vessel risk profiling with LSEG’s shipping analytics capabilities empowers stakeholders to navigate the evolving risks of global trade with confidence. By providing actionable insights and comprehensive market data, this partnership revolutionizes risk management in the maritime industry and sets a new standard for sanctions compliance.
