London Stock Exchange Group has announced a partnership with artificial intelligence fintech Windward AI to combat sanctions-busting in global shipping through AI profiling of vessels’ risk factors.
Windward claims that its solution is able to detect indicators of suspicious or illicit activity for the entirety of global shipping.
Windward’s AI technology is expected to track 117,200 vessels that are currently at sea, and will use AI and behavioural risk assessment models to screen for a variety of indicators that a vessel is breaking sanctions.
These criteria include the status of automatic identification system (AIS) tracking devices, visiting the port of a sanctioned country, or loitering in sanctioned areas.
The technology will augment already available shipping analytic tools on the LSEG platform in real time, tracking oil tankers, dry bulk carriers, container vessels and others.
The Russian invasion of Ukraine, and attendant economic sanctions against Russia, have highlighted the prevalence of sanctions-busting and deceptive shipping practices.
Deceptive shipping practices include ship-to-ship transfers and dark activity, where vessels stop broadcasting signals to remain undetected.
Data provided by Windward shows that 46 per cent of all sanctioned cargo vessels are Russian-affiliated. Additionally, 42 per cent of high risk tankers are Russian-affiliated.
On 23 June, the EU announced the eleventh package of sanctions against Russia, including a range of prohibitions on accessing EU ports.
Under these newest sanctions, vessels suspected of engaging in activity contrary to the Russian oil import ban or G7 Coalition oil price cap, those manipulating or disengaging tracking systems when transporting Russian oil, and those that fail to notify competent authorities of ship-to-ship transfers within the EEZ of an EU member state, are not permitted to access EU ports under these newest sanctions.
Commenting on LSEG and Windward’s partnership, LSEG’s head of shipping and agriculture Fabrice Maille says: “By blending Windward’s vessel risk profiling with LSEG shipping analytics capabilities, we can now equip our trading and chartering users with the best solution to assess and mitigate the sanctions compliance risks in the maritime space as part of their daily workflow.”
Ami Daniel, co-founder and CEO of Windward AI says: "We are thrilled to join forces with LSEG to provide crucial insights into maritime risk… By combining our maritime AI technology with LSEG’s comprehensive market data and reach, we are strategically poised to revolutionise risk management in the maritime domain.”
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