Maritime Law, Insurance & Enforcement
Know Your Customer in Ship Finance
Summary
Know-your-customer (KYC) checks identify borrowers, owners, controllers and transaction risk before and during a lending relationship.
Why this matters in ship finance
Insufficient due diligence can prevent drawdown or block payments even when a vessel is commercially sound.
The concept
EUs AML obligations apply to defined obliged entities, including credit institutions; maritime borrowers have different duties depending on their own status. The EU AML single rulebook becomes generally applicable from July 2027.
How it is used in practice
Document identity, ownership and control, source of funds, politically exposed persons, sanctions matches, purpose and ongoing monitoring.
Practical issues
Do not treat incorporation or registry documents alone as adequate ownership/control checks. Separate AML and sanctions legal tests.
How ShipFinance.ai uses this concept
Provide lender due-diligence fields and refresh triggers without claiming that the platform issues regulatory clearance.
Key takeaways
- KYC obligations apply to defined regulated entities.
- Confirm beneficial control, funds and ongoing transaction purpose.
- The new EU AML rulebook has future application dates.