Shipping Law Developments in Liberia in 2024

Introduction

Citing the motto “All flags are not alike”, Liberia is the flag state administrator in the world. Under the sole management of LISCR LLC, a Delaware-based limited liability company functioning on behalf of the Liberian government, the ship and corporate registry programmes represent Liberia’s dedication to quality management, safety supervision, and innovative service delivery. The Liberian flag is widely known and has been included to lists of approved flags by international port state regimes.

The corporate register in Liberia has won praise for its commitment to superior business services, cutting-edge technology developments, and legal stability. Liberia has demonstrated its unwavering adherence to these ideals through recent legislative changes.

Changes in Liberian maritime law and regulations

Utilising its vast international network and skilled inspectors, Liberia’s registry responded to the problems presented by the worldwide pandemic. During the crisis, temporary measures were successfully implemented, such as accepting electronically filed register instruments by email. Due to the favourable result, these modifications were codified in the 2022 Amendment, which went into effect on 9 August 2022, permanently removing the requirement for physical document submission and making electronic filing a feature.

In addition to streamlining procedures, the 2022 Amendment made preferred mortgage recording regulations more understandable. In line with traditions in English law jurisdictions, Liberian law now expressly excludes certain sensitive terminology from disclosure in the recorded instrument.

Seafarer Certification Application Portal

The “Seafarer Certification Application Portal”, launched by the Liberian Registry in 2021, allows direct applications for flag state-approved licences and upgrades. For both new and current mariners, this online solution improves and streamlines the certification procedure.

Addressing transparency: beneficial ownership disclosure

In 2018, Liberia ended the use of bearer shares in accordance with international transparency norms that were pushed by the Financial Action Task Force and the OECD Global Forum. The action was taken in an effort to reduce the danger of money laundering, terrorist financing, capital flow, and tax avoidance. In order to promote transparency and adherence to international standards, the amendment required the keeping of beneficial ownership information.

Up-to-date records on registered and beneficial owners

Amendments to the Liberian Associations Law in April 2020 required entities to keep up-to-date records of registered and beneficial owners, further demonstrating Liberia’s commitment to transparency. The need is to file an Annual Declaration of Shareholding, Beneficial Ownership, Management, and Record-Keeping with The LISCR Trust Company. It went into effect on 31 December 2021. Transparency is ensured by this endeavour without jeopardising jurisdictional public documents.

Compliance and sanctions

Entities are required by the Liberian Associations Law to keep proper records of registered shareholders and beneficial owners. Sanctions for noncompliance with record-keeping obligations might include the resignation of the LISCR Trust Company, fines for noncompliance, and disruptions to regular business operations. The Registrar has the authority to impose additional penalties on these organisations, underscoring the need of complying with regulatory requirements.