keeps you connected across the coal world

Submit Your Articles
We welcome article submissions from experts in the areas of coal, mining, shipping, etc.

To Submit your article please click here.

International Energy Events

WTI Crude Oil

BRENT Crude Oil

Search News
Latest CoalNews Headlines
Friday, 05 June 20
Akingump black 150x150Key Points
  • On May 14, 2020, OFAC, the Department of State and the U.S. Coast Guard jointly released guidance for persons involved in the maritime industry regarding common deceptive shipping practices used to subvert U.S. and United Nations sanctions programs targeting Iran, North Korea and Syria.
  • The guidance highlights certain deceptive practices employed in maritime activity that could signal sanctions evasion.
  • The guidance also contains specific measures that the maritime industry and energy and metals sectors can take to tailor their sanctions compliance programs to avoid sanctions violations or otherwise supporting illicit shipping activities.
  • This Guidance is part of a sustained focus on the international shipping industry, including the U.S. Government’s latest enforcement actions in the shipping sector on June 2, 2020.
The Guidance
On May 14, 2020, the Department of the Treasury’s Office of Foreign Assets Control (OFAC), the Department of State and the U.S. Coast Guard jointly released guidance (the “Guidance”) regarding common deceptive shipping practices in order to aid persons involved in the maritime industry, and energy and metals sectors, in tailoring their due diligence and sanctions compliance policies and procedures. The Guidance is particularly targeted towards ship owners, managers, operators, brokers, ship chandlers, flag registries, port operators, shipping companies, freight forwarders, classification service providers, commodity traders, insurance companies and financial institutions. The shipping industry continues to present particularly challenging issues associated with U.S. sanctions compliance, including the involvement of numerous parties in particular voyages all with different, yet overlapping risks.
The Guidance continues a further and concerted effort by OFAC to focus in particular on the shipping industry and builds on prior advisories that it has issued directed at the shipping industry, including one issued on September 4, 2019, entitled “Sanctions Risks Related to Shipping Petroleum and Petroleum Products from Iran” that also identified specific deceptive shipping practices and risk mitigation measures for the industry. As the U.S. Government’s latest enforcement actions on June 2, 2020 demonstrate, OFAC sanctions enforcement attention is squarely focused on the international shipping industry. 
The Guidance also provides important insights for companies operating in the maritime sector regarding the criteria that OFAC applies when evaluating an effective sanctions compliance program for such companies.
Below we summarize key points from the Guidance that are relevant for the shipping sector, including a summary of deceptive practices highlighted in the Guidance, a summary of general practices for effective identification of potential sanctions evasion and summaries of guidance for certain actors in the maritime industry and country-specific guidance.
Deceptive Shipping Practices
The Guidance provides a summary of common tactics utilized to facilitate sanctionable or illicit maritime trade linked to Iran, North Korea and Syria, including:
  1. Disabling or manipulating the Automatic Identification System (AIS) on vessels to conceal a vessel’s port of call or other information regarding its voyage.
  2. Physically altering vessel identification to obscure the identities of sanctioned vessels or vessels engaging in sanctionable activities.
  3. Falsifying cargo and vessel documents, particularly with respect to shipments involving petrochemicals, petroleum, petroleum products, metals (steel, iron) or sand to disguise their origin.
  4. Ship-to-Ship (STS) Transfers used to conceal origin/destination of products.
  5. Voyage irregularities to disguise the ultimate destination or origin of cargo, including indirect routing, unscheduled detours or transit or transshipment of cargo through third countries.
  6. False flags and flag hopping (i.e., repeatedly registering vessels with new flag states).
  7. Use of complex ownership or management to disguise the ultimate beneficial owner of cargo or commodities in order to avoid sanctions or other enforcement actions.
General Practices for Effective Identification of Sanctions Evasion
The Guidance also highlights, and provides details regarding, the following practices for effective identification of potential sanctions evasion:
  1. Institutionalizing a sanctions compliance program, including through the implementation of written standardized operational compliance policies, procedures, standards of conduct and safeguards.
  2. Establishing AIS best practices and contractual requirements that make disabling/manipulating AIS for illegitimate reasons grounds for termination of contracts or investigations.
  3. Monitoring ships throughout the entire transaction lifecycle, including through supplementing AIS with Long Range Identification and Tracking (LRIT) and receiving periodic LRIT signals on a frequency informed by the entity’s risk assessment.
  4. Conducting “Know Your Customer” due diligence on customers and counterparties, which could include “maintaining the names, passport ID numbers, address(es), phone number(s), email address(es), and copies of photo identification of each customer’s beneficial owner(s).”
  5. Exercising supply chain due diligence, including, as appropriate, conducting due diligence to ensure that recipients and counterparties to a transaction are not sending or receiving commodities that may trigger sanctions, such as Iranian petroleum or North Korea-origin coal, and implementing controls that allow for verification-of-origin and recipient checks for ships that conduct STS transfers.
  6. Incorporating the above “best practices” into contracts.
  7. Sharing information about sanctions evasion techniques and threats amongst industry groups.

Annex A: Actor-specific Guidance
In Annex A, the Guidance provides bulleted lists of guidance and information for particular actors within the maritime industry, including: maritime insurance companies, flag registry managers, port state control authorities, shipping industry associations, regional and global commodity trading, supplier, and brokering companies, financial institutions, ship owners, operators, and charterers, classification societies, vessel captains and crewing companies.
Below we summarize the guidance with respect to ship owners, operators and charterers, vessel captains and crewing companies.
Ship Owners, Operators, and Charterers:
  1. Identify vessels that, in the past two years, have a pattern of AIS manipulation not consistent with the International Convention for the Safety of Life at Sea and terminating business relationships with clients that continue to use those vessels.
  2. Keep and analyze records, including, where possible, photographs, of delivery and recipient vessels and/or recipients located at ports when possible, to enhance end-use verification.
  3. Protect employees who reveal illegal or sanctionable behavior from retaliation.
  4. Incorporate data into due diligence practices from organizations that provide commercial shipping data.
  5. Communicate to counterparts as necessary and appropriate (e.g., ship owners, managers, charterers, operators) an expectation that they have adequate and appropriate compliance policies.
Vessel Captains:
  1. Ensure deck officers are aware of the International Maritime Organization’s (IMO) AIS regulations, including the requirement to consistently broadcast AIS transmissions.
  2. Communicate to ship owners and charterers that vessels are monitored for AIS disablement and that any occurrences of AIS disablement will be investigated.
  3. Understand vessels’ AIS history to determine whether they may have been involved in illicit activities.
  4. Before engaging in ship-to-ship transfers, verify the other vessel’s name, IMO number and flag, and ensure there is a legitimate business purpose for the transfer.
Crewing Companies:
  1. Ensure crewmembers are aware of IMO guidance in relation to illicit shipping and the reasons why certain practices are unsafe.
  2. Communicate to clients that crews are monitored for AIS disablement and that any occurrences of AIS disablement will be investigated.
  3. Understand vessels’ AIS history to determine whether it may have been involved in illicit activities.
  4. Ensure that crewmembers who reveal illegal or sanctionable activity are protected from retaliation and providing a confidential mechanism for reporting sanctionable conduct.
Annex B: Country Guidance

In Annex B, the Guidance summarizes relevant provisions of U.S. and U.N. sanctions programs concerning North Korea, Iran and Syria and actions prohibited under said programs relevant to the maritime industry. It also highlights a few points with respect to recent deceptive practices to facilitate illicit shipping to North Korea, Syria, and Iran which are summarized below.
North Korea:
North Korea reportedly exported 3.7 million metric tons of coal between January and August 2019, in violation of U.N. sanctions. Further, while under United Nations Security Council Resolution 2397, North Korea is limited to importing a maximum of 500,000 barrels of petroleum per year, from January to October 2019. North Korea ports received 221 tanker deliveries, which, if fully laden, would result in approximately 3.89 million barrels of imports. According to the Guidance, these illicit exports and imports are primarily effectuated via ship-to-ship transfers in Chinese territorial seas. Image 1 below depicts the most common areas in which such ship-to-ship transfers take place.


North Korea ship to ship transfer Areas

Common Locations of Ship-to-Ship Transfers subverting North Korean Sanctions1
North Korea is also reportedly acquiring vessels destined for scrapping and non-ocean-going barges that do not transmit AIS signals to engage in illicit import/export operations.
The Guidance notes that “the supply chain and petroleum-related shipments [to Syria] create significant sanctions risk for those in the maritime industry.” As an example, it highlights the September 2019 OFAC action against Maritime Assistance LLC for facilitating the sale and delivery of jet fuel to Russian military forces operating in Syria. It also highlights the OFAC action in the November 2018 scheme in which Iranian and Russian entities engaged in a payment offsetting arrangement in which the sale and shipment of Iranian oil to Syria provided funding to Iran and proxy groups such as Hizballah, the Islamic Resistance Movement (HAMAS) and the Islamic Revolutionary Guard Corps-Quds Force (IRGC-QF).
The Guidance did not provide specific guidance with respect to deceptive shipping practices used to subvert Iran-related sanctions—rather, it noted that the IRGC-QF continues to try to evade U.S. sanctions “by obfuscating the origin, destination, and recipient of oil shipments,” stating that “the use of such deceptive tactics is unique neither to Iran nor to Iran’s petroleum industry.”
Companies in the shipping industry or whose businesses intersect the shipping sector should assess their sanctions risk in light of this latest U.S. government guidance and make necessary modifications or enhancements to their compliance programs to mitigate this risk.
Source: Akin Gump, Strauss Hauer & Feld LLP

If you believe an article violates your rights or the rights of others, please contact us.

Recent News

Friday, 18 September 20
China’s benchmark power coal price rose slightly during the past week.   The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of ...

Thursday, 17 September 20
Asian thermal coal exporters are fighting an uphill battle even in new markets The world’s largest thermal coal exporter is eyeing new m ...

Wednesday, 16 September 20
Another active week in terms of SnP has concluded in the dry bulk market with a diversified array of transactions recorded. Despite the correction ...

Friday, 11 September 20
KNOWLEDGE TO ELEVATE Many predictions were made in the run up to the imposition of the MARPOL 2020 sulphur cap, none of which was that the tra ...

Thursday, 10 September 20
EIA expects total U.S. coal production in 2020 to be 511 million short tons (MMst), 194 MMst (28%) lower than in 2019. Mitigation efforts related t ...

   1 2 3 4 5   
Showing 6 to 10 news of total 6093
News by Category
Popular News
Total Members : 27,092
User ID
Remember Me
By logging on you accept our TERMS OF USE.
Forgot Password
Our Members Are From ...

  • Carbofer General Trading SA - India
  • Sucofindo - Indonesia
  • Mercator Lines Limited - India
  • Glencore India Pvt. Ltd
  • Petrochimia International Co. Ltd.- Taiwan
  • Tanito Harum - Indonesia
  • DBS Bank - Singapore
  • Oldendorff Carriers - Singapore
  • IEA Clean Coal Centre - UK
  • Credit Suisse - India
  • Bayan Resources Tbk. - Indonesia
  • JPower - Japan
  • Australian Coal Association
  • Ernst & Young Pvt. Ltd.
  • Inspectorate - India
  • World Coal - UK
  • CCIC - Indonesia
  • Bharathi Cement Corporation - India
  • IOL Indonesia
  • Shree Cement - India
  • Mintek Dendrill Indonesia
  • Krishnapatnam Port Company Ltd. - India
  • Reliance Power - India
  • Gresik Semen - Indonesia
  • Antam Resourcindo - Indonesia
  • Directorate General of MIneral and Coal - Indonesia
  • Billiton Holdings Pty Ltd - Australia
  • Ceylon Electricity Board - Sri Lanka
  • Banpu Public Company Limited - Thailand
  • Borneo Indobara - Indonesia
  • Anglo American - United Kingdom
  • Bank of Tokyo Mitsubishi UFJ Ltd
  • Global Green Power PLC Corporation, Philippines
  • TRAFIGURA, South Korea
  • Maersk Broker
  • Larsen & Toubro Limited - India
  • Qatrana Cement - Jordan
  • Chettinad Cement Corporation Ltd - India
  • AsiaOL BioFuels Corp., Philippines
  • McConnell Dowell - Australia
  • Aditya Birla Group - India
  • Siam City Cement PLC, Thailand
  • Marubeni Corporation - India
  • ING Bank NV - Singapore
  • Noble Europe Ltd - UK
  • Power Finance Corporation Ltd., India
  • SASOL - South Africa
  • Maruti Cements - India
  • Cement Manufacturers Association - India
  • Xstrata Coal
  • MEC Coal - Indonesia
  • KPMG - USA
  • Mitra SK Pvt Ltd - India
  • globalCOAL - UK
  • WorleyParsons
  • APGENCO India
  • Ince & co LLP
  • Jindal Steel & Power Ltd - India
  • Sree Jayajothi Cements Limited - India
  • Madhucon Powers Ltd - India
  • World Bank
  • Agrawal Coal Company - India
  • Panama Canal Authority
  • KOWEPO - South Korea
  • Coal and Oil Company - UAE
  • Merrill Lynch Bank
  • SMC Global Power, Philippines
  • Peabody Energy - USA
  • Berau Coal - Indonesia
  • Pipit Mutiara Jaya. PT, Indonesia
  • Global Coal Blending Company Limited - Australia
  • London Commodity Brokers - England
  • Rio Tinto Coal - Australia
  • Asia Pacific Energy Resources Ventures Inc, Philippines
  • Clarksons - UK
  • Parry Sugars Refinery, India
  • Romanian Commodities Exchange
  • Kumho Petrochemical, South Korea
  • Globalindo Alam Lestari - Indonesia
  • Ambuja Cements Ltd - India
  • International Coal Ventures Pvt Ltd - India
  • Bangladesh Power Developement Board
  • SMG Consultants - Indonesia
  • Adaro Indonesia
  • GB Group - China
  • Coaltrans Conferences
  • U S Energy Resources
  • CIMB Investment Bank - Malaysia
  • Latin American Coal - Colombia
  • RBS Sempra - UK
  • Ministry of Mines - Canada
  • Kapuas Tunggal Persada - Indonesia
  • Australian Commodity Traders Exchange
  • Orica Mining Services - Indonesia
  • IHS Mccloskey Coal Group - USA
  • CESC Limited - India
  • Pinang Coal Indonesia
  • Pendopo Energi Batubara - Indonesia
  • Bank of America
  • Toyota Tsusho Corporation, Japan
  • Coal Orbis AG
  • Tata Chemicals Ltd - India
  • Grasim Industreis Ltd - India
  • Freeport Indonesia
  • Heidelberg Cement - Germany
  • TeaM Sual Corporation - Philippines
  • Salva Resources Pvt Ltd - India
  • Idemitsu - Japan
  • Indogreen Group - Indonesia
  • Sarangani Energy Corporation, Philippines
  • Directorate Of Revenue Intelligence - India
  • Runge Indonesia
  • BNP Paribas - Singapore
  • Thomson Reuters GRC
  • Jaiprakash Power Ventures ltd
  • Leighton Contractors Pty Ltd - Australia
  • Vizag Seaport Private Limited - India
  • GVK Power & Infra Limited - India
  • PLN Batubara - Indonesia
  • Singapore Mercantile Exchange
  • CNBM International Corporation - China
  • Planning Commission, India
  • Bukit Makmur.PT - Indonesia
  • Electricity Generating Authority of Thailand
  • Miang Besar Coal Terminal - Indonesia
  • Russian Coal LLC
  • Chamber of Mines of South Africa
  • JPMorgan - India
  • Jatenergy - Australia
  • Straits Asia Resources Limited - Singapore
  • BRS Brokers - Singapore
  • Arutmin Indonesia
  • Barclays Capital - USA
  • Formosa Plastics Group - Taiwan
  • Total Coal South Africa
  • Timah Investasi Mineral - Indoneisa
  • South Luzon Thermal Energy Corporation
  • Georgia Ports Authority, United States
  • Thriveni
  • Kobexindo Tractors - Indoneisa
  • Gupta Coal India Ltd
  • EIA - United States
  • Cardiff University - UK
  • Indian School of Mines
  • Wood Mackenzie - Singapore
  • Indo Tambangraya Megah - Indonesia
  • Samtan Co., Ltd - South Korea
  • Parliament of New Zealand
  • Videocon Industries ltd - India
  • GAC Shipping (India) Pvt Ltd
  • PetroVietnam
  • Deutsche Bank - India
  • Core Mineral Indonesia
  • Platou - Singapore
  • Britmindo - Indonesia
  • Malco - India
  • Orica Australia Pty. Ltd.
  • The Treasury - Australian Government
  • Thai Mozambique Logistica
  • Commonwealth Bank - Australia
  • OCBC - Singapore
  • Uttam Galva Steels Limited - India
  • ICICI Bank Limited - India
  • Independent Power Producers Association of India
  • Therma Luzon, Inc, Philippines
  • Ind-Barath Power Infra Limited - India
  • Tamil Nadu electricity Board
  • Rashtriya Ispat Nigam Limited - India
  • Deloitte Consulting - India
  • Price Waterhouse Coopers - Russia
  • Thiess Contractors Indonesia
  • Medco Energi Mining Internasional
  • Posco Energy - South Korea
  • SGS (Thailand) Limited
  • Dr Ramakrishna Prasad Power Pvt Ltd - India
  • Indika Energy - Indonesia
  • Gujarat Mineral Development Corp Ltd - India
  • Mercuria Energy - Indonesia
  • Semirara Mining and Power Corporation, Philippines
  • LBH Netherlands Bv - Netherlands
  • Truba Alam Manunggal Engineering.Tbk - Indonesia
  • Wilmar Investment Holdings
  • Economic Council, Georgia
  • Indonesian Coal Mining Association
  • Karaikal Port Pvt Ltd - India
  • Edison Trading Spa - Italy
  • Inco-Indonesia
  • Mechel - Russia
  • Intertek Mineral Services - Indonesia
  • Altura Mining Limited, Indonesia
  • Essar Steel Hazira Ltd - India
  • Bhatia International Limited - India
  • Mitsui
  • Eastern Energy - Thailand
  • Vitol - Bahrain
  • Coastal Gujarat Power Limited - India
  • India Bulls Power Limited - India
  • IMC Shipping - Singapore
  • J M Baxi & Co - India
  • Cemex - Philippines
  • Merrill Lynch Commodities Europe
  • Gujarat Sidhee Cement - India
  • Gujarat Electricity Regulatory Commission - India
  • Bahari Cakrawala Sebuku - Indonesia
  • Renaissance Capital - South Africa
  • GHCL Limited - India
  • Holcim Trading Pte Ltd - Singapore
  • Bukit Baiduri Energy - Indonesia
  • ACC Limited - India
  • Sical Logistics Limited - India
  • Indian Oil Corporation Limited
  • TNB Fuel Sdn Bhd - Malaysia
  • Sakthi Sugars Limited - India
  • Attock Cement Pakistan Limited
  • Asian Development Bank
  • Coeclerici Indonesia
  • Kaltim Prima Coal - Indonesia
  • Kalimantan Lumbung Energi - Indonesia
  • Barasentosa Lestari - Indonesia
  • Vale Mozambique
  • Standard Chartered Bank - UAE
  • SRK Consulting
  • Humpuss - Indonesia
  • Kepco SPC Power Corporation, Philippines
  • Tata Power - India
  • The India Cements Ltd
  • New Zealand Coal & Carbon
  • Star Paper Mills Limited - India
  • Indonesia Power. PT
  • Lanco Infratech Ltd - India
  • Minerals Council of Australia
  • Infraline Energy - India
  • Mjunction Services Limited - India
  • ANZ Bank - Australia
  • Geoservices-GeoAssay Lab
  • ASAPP Information Group - India
  • Kohat Cement Company Ltd. - Pakistan
  • Samsung - South Korea
  • IBC Asia (S) Pte Ltd
  • TANGEDCO India
  • GMR Energy Limited - India
  • The State Trading Corporation of India Ltd
  • Kobe Steel Ltd - Japan
  • Semirara Mining Corp, Philippines
  • OPG Power Generation Pvt Ltd - India
  • Binh Thuan Hamico - Vietnam
  • Xindia Steels Limited - India
  • Cargill India Pvt Ltd
  • Bangkok Bank PCL
  • Petron Corporation, Philippines
  • Bhoruka Overseas - Indonesia
  • European Bulk Services B.V. - Netherlands
  • Goldman Sachs - Singapore
  • UBS Singapore
  • Cigading International Bulk Terminal - Indonesia
  • Permata Bank - Indonesia
  • Kideco Jaya Agung - Indonesia
  • Asia Cement - Taiwan
  • Adani Power Ltd - India
  • Cosco
  • MS Steel International - UAE
  • Siam City Cement - Thailand
  • PowerSource Philippines DevCo
  • Bulk Trading Sa - Switzerland
  • Bukit Asam (Persero) Tbk - Indonesia
  • GNFC Limited - India
  • Meenaskhi Energy Private Limited - India
  • Interocean Group of Companies - India
  • Central Electricity Authority - India
  • Baramulti Group, Indonesia
  • San Jose City I Power Corp, Philippines
  • Lafarge - France
  • Arch Coal - USA
  • Vedanta Resources Plc - India
  • Enel Italy
  • Surastha Cement
  • Offshore Bulk Terminal Pte Ltd, Singapore
  • Thailand Anthracite
  • Eastern Coal Council - USA
  • Energy Link Ltd, New Zealand
  • Japan Coal Energy Center
  • NTPC Limited - India
  • Aboitiz Power Corporation - Philippines
  • SUEK AG - Indonesia
  • Riau Bara Harum - Indonesia
  • Malabar Cements Ltd - India
  • Ministry of Finance - Indonesia
  • PetroVietnam Power Coal Import and Supply Company
  • The University of Queensland
  • Trasteel International SA, Italy
  • Metalloyd Limited - United Kingdom
  • Central Java Power - Indonesia
  • Neyveli Lignite Corporation Ltd, - India
  • Rudhra Energy - India
  • Simpson Spence & Young - Indonesia
  • Kartika Selabumi Mining - Indonesia
  • Savvy Resources Ltd - HongKong
  • Bank of China, Malaysia
  • CoalTek, United States
  • Ministry of Transport, Egypt
  • Maheswari Brothers Coal Limited - India
  • EMO - The Netherlands
  • KEPCO - South Korea
  • UOB Asia (HK) Ltd
  • SN Aboitiz Power Inc, Philippines
  • bp singapore
  • TNPL - India
  • Makarim & Taira - Indonesia
  • Thermax Limited - India
  • White Energy Company Limited
  • Petrosea - Indonesia
  • Iligan Light & Power Inc, Philippines
  • McKinsey & Co - India
  • Port Waratah Coal Services - Australia
  • Dalmia Cement Bharat India
  • Sindya Power Generating Company Private Ltd
  • Mitsubishi Corporation
  • Meralco Power Generation, Philippines
  • GN Power Mariveles Coal Plant, Philippines
  • Sojitz Corporation - Japan
  • HSBC - Hong Kong
  • Karbindo Abesyapradhi - Indoneisa
  • Energy Development Corp, Philippines
  • Bhushan Steel Limited - India
  • Sinarmas Energy and Mining - Indonesia
  • Manunggal Multi Energi - Indonesia
  • Fearnleys - India
  • Filglen & Citicon Mining (HK) Ltd - Hong Kong
  • PTC India Limited - India
  • Indorama - Singapore
  • Coal India Limited
  • Jorong Barutama Greston.PT - Indonesia
  • Africa Commodities Group - South Africa
  • Moodys - Singapore
  • NALCO India
  • Maharashtra Electricity Regulatory Commission - India
  • Global Business Power Corporation, Philippines
  • Argus Media - Singapore
  • ETA - Dubai
  • Dong Bac Coal Mineral Investment Coporation - Vietnam
  • VISA Power Limited - India
  • Alfred C Toepfer International GmbH - Germany
  • Shenhua Group - China
  • Vijayanagar Sugar Pvt Ltd - India
  • Cebu Energy, Philippines
  • KPCL - India
  • PNOC Exploration Corporation - Philippines
  • Maybank - Singapore
  • Coalindo Energy - Indonesia
  • Asmin Koalindo Tuhup - Indonesia
  • PLN - Indonesia
  • Platts