ICC Sri Lanka educates on maritime crime and trade malpractices

To be inaugurated by SLPA Chairman Dr. Priyath B. Wickrama

With Sri Lanka being identified as an emerging maritime centre, the International Chamber of Commerce (ICC) Sri Lanka has decided to conduct a one day training workshop on ‘Maritime Crime and Trade Malpractices’. The event is being held in association with the Shippers’ Academy Colombo.

As the world is going through a global recession, the market conditions have become extremely volatile creating greater imbalances in international trade. The risks of malpractices and fraud therefore increases as criminals and companies who are in difficulty may attempt various practices to unlawfully take control of cargo or create documents that would finally lead to non-payments for consignments shipped.

The trend of this kind of activity is more prevalent during uncertain times where markets and prices can change overnight.

The ICC has invited International Maritime Bureau (IMB) London Director P. Mukundan, a world-renowned expert on the subject, to conduct this workshop.

IMB being a specialised division of the International Chamber of Commerce, its main task is to protect the integrity of international trade by seeking out fraud and malpractices.

It has a large database and industry knowledge with great experience and access to large number of well placed contacts around the world, where various case studies are in hand for the industry to understand the pitfalls of international trade. The IMB investigates frauds, spots new criminal methods and trends affecting   the flow of global trade.

Maritime crime and trade malpractices have in fact affected many Sri Lankan companies over the last three decades after liberalising the economy. Many companies have suffered due to various unlawful activities and have lost thousands of dollars by engaging the wrong practices.

Mukundan is expected to cover a range of topics in the upcoming event organised by the ICC Sri Lanka. Among them are:

1. Trade finance frauds: This topic will discuss the threats and risks to banks, when handling documentation and other methods used for money laundering. The area will also cover major risks to buyers (importers) and sellers (exporters) who need to understand the pitfalls and the best way to secure cargo as well as payments.

2. Cargo and insurance fraud and container crime: This area will cover various acts related to bill of lading frauds, charter party failures, loss of cargo at sea and other implications due to deviation of vessels. In many cases, this area is very relevant to the local industry as all exporters, importers, banks and insurance companies could be at risk due to large amounts of B/Ls being issued through various parties in the supply chain.  Identifying crime and knowing what to be cautious of will help companies to minimise risks and protect valuable cargo by taking precautions and being thorough with documentation.

Among other topics, the speaker will talk on the threat of modern piracy and the implications to global trade as well as sanctions and its responsibilities where actual case studies will be discussed with the participants.  

The ICC extends an invitation to all industrialists involved in international trade or service providers, facilitators of such trade, to send their senior staff as well as new comers to the industry to get an understanding on the risks of crime and malpractices.

The ICC believes that bankers, insurance companies, shipping lines, shippers, law firms, freight forwarders and other logistics service providers should participate in this training session which is conducted once in three years with the International Maritime Bureau, London.

The workshop is scheduled to be held on Tuesday 5 July 2011, from 8:30 a.m. to 5 p.m. at the Hotel Taj Samudra. Participants will be awarded with certificates. For further details, please contact the ICC Sri Lanka on tel: 011 2307841/ 011 5230932, fax: 011 2307841 or email [email protected].