Illegal — IUU Laundering
Catch from illegal, unreported, and unregulated fishing washed into legitimate supply chains.
Illegal, Unreported and Unregulated (IUU) fishing accounts for a significant share of global seafood volume. The fraud isn't just the catch itself — it's the laundering pathway that transforms IUU product into apparently-legal commerce. Vessels transship at sea, paperwork is rewritten in flag-of-convenience ports, and the catch enters processing facilities indistinguishable from licit product.
The label "IUU" covers three distinct behaviours that often overlap. Illegal fishing violates the laws of the flag state or the jurisdiction where the vessel operates. Unreported fishing is catch that is never declared to a fisheries authority. Unregulated fishing occurs in areas or for species outside effective management frameworks. All three feed the same laundering pipeline.
Why it persists
The price differential between legal and IUU product covers the cost of laundering many times over, and prosecutions are rare even where laws exist. Weak port-state controls, inconsistent flag-state enforcement, and opaque vessel ownership structures create a durable arbitrage that market forces alone cannot close.
Red flags
- Origin claims that don't match the species' known fishing zones
- Suppliers refusing to provide vessel-level traceability
- Anomalous pricing that doesn't reflect quota costs
- Documentation gaps between catch and import
- Flag-of-convenience vessels in the supply chain with no ownership disclosure
Counter-measures
- Vessel-level catch documentation required at purchase
- Port state measures enforcement — inspection at landing
- Cross-border data sharing agreements (e.g. PSMA ratification)
- Blockchain or electronic catch documentation schemes
Who needs to act — and how
IUU laundering touches every node in the supply chain. Responsibility is shared.
What you can do
- Ask retailers for vessel-of-origin information on wild-caught product
- Favour products with traceable certification (e.g. MSC with lot verification)
- Report suspicious pricing to consumer protection authorities
What you can do
- Require supplier disclosure of vessel registration and flag state
- Include catch-documentation clauses in procurement contracts
- Audit tier-two suppliers, not just direct vendors
What you can do
- Refuse product that cannot be traced to a named vessel and port of landing
- Implement electronic lot-tracking from intake to dispatch
- Participate in industry traceability schemes and data sharing
What you can do
- Mandate import documentation including vessel ID and catch certificates
- Implement port-state inspection regimes aligned with the PSMA
- Share catch-certificate data with trading partners in real time