Flags of convenience and hidden ownership: EU-owned fishing vessels in high-risk jurisdictions

The European Union (EU) is a global leader in efforts to combat illegal fishing. As one of the world’s largest markets for seafood, and with a significant distant water fleet of at least 588 vessels when combining both EU-flagged and EU-owned vessels fishing outside EU waters, the EU plays a pivotal role in shaping how fisheries are managed and monitored internationally. But there is a blind spot. EU citizens and companies own fishing vessels that operate under non-EU flags, including ‘flags of convenience’ (FoCs), issued by states with weak monitoring, control, and surveillance mechanisms or limited political or judicial will or capacity to enforce fisheries rules. These FoCs present high risks of non-compliance and illegal fishing. Because there is no clear obligation for EU citizens or companies to register ownership of such vessels with EU authorities, most remain hidden from public view. This lack of oversight allows profits from foreign fishing activities, including potentially illegal, unreported and unregulated (IUU) fishing, to flow back into the EU. In this report, we examine EU-ownership of large-scale fishing vessels flagged to countries that have either been: (i) identified by the EU as a non-cooperative jurisdiction for tax purposes; (ii) issued a warning (‘yellow card’) by the EU for failing to address IUU fishing; or (iii) are deemed an FoC by the International Transport Workers Federation (ITF). We identified 106 presumed EU-owned vessels, flagged to 21 such high-risk countries. These vessels are owned by citizens or companies domiciled in 17 EU Member States, primarily in Spain, Portugal, Lithuania, and Sweden. Moreover, 33 of these vessels are authorised to export their catch to the EU. The lack of transparency surrounding EU-owned vessels operating under FoCs, yellow-carded states, or tax havens poses clear risks of facilitating illegal and unsustainable fishing. To ensure that EU citizens and companies do not profit from activities linked to IUU fishing, it is critical that the EU deliver on its Ocean Pact commitments to tackle FoCs and increase beneficial ownership transparency.