Banks may struggle to detect fraud and comply with sanctions regulations, risking heavy fines and losses, due to a sudden inability to track thousands of vessels in Chinese waters over the last month.
In late October, vessel tracking firms began registering a drop-off in data transmitted through receivers on the ground in China. The receivers relay information from vessels, such as their name, speed, weight and destination, through an automatic identification system (AIS).
The loss of signal accelerated again in early November, according to vessel tracking solutions provider Windward, which has noted a drop in traffic data of between 70% and 80%, although this includes a large number of small vessels and those in inland waters.
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