Report | October 13, 2022
Problematic EU ownership of fishing vessels in countries that fail to tackle illegal fishing
A lack of transparency in the global fishing sector is enabling illegal, unreported, and unregulated (IUU) fishing. IUU fishing depletes fish stocks, destroys marine habitats, distorts competition, and weakens coastal communities – particularly in developing countries. It is a high-benefit activity – often associated with human, drugs, and weapons trafficking, tax fraud, money laundering, and labour right abuses – that flourishes under conditions where transparency is lacking and governance loopholes exist.
IUU fishing operators often target areas with weak national or international controls to illegally harvest marine resources. They take advantage of ‘flags of convenience’: registering their vessels under a foreign flag that bears no association with the nationality of the vessel’s owner or operator. Indeed, under international law, the country under which a vessel operates – known as the ‘flag state’ – is responsible for controlling the vessel’s fishing activities. Technically, under international law there must be a ‘genuine link’ between the fishing vessel and the country whose flag it flies. In practice, this is not always the case and some vessels pick whichever flag allows them to access new fishing grounds or evade fisheries rules or penalties. Some countries also allow ship owners to remain anonymous using shell companies, which makes it nearly impossible to identify the real owners.

