Scope

This policy applies to any irregularity or suspected irregularity of any application for a NI certificate/diploma including any involvement of any accredited training centres or persons involved in any confirmation letters, log books, recording of sea time or any other documentation for the application. Should there be a detection of any irregularities; an unbiased investigation will be conducted regardless of the applicant’s title or position.

Definition of fraud

Fraud is defined as abuse of position, or false representation, or prejudicing someone's rights for personal gain.

Irregularities refer to but are not limited to:

• Inappropriate use of documentation or information
• Testimonial letters falsifying sea-time
• Falsifying official company documents e.g. logos, letterheads, authorised signatories and stamps
• False sea time claimed to gain or maintain the certificate
• Issuance of certificates to persons who were not in attendance on a training course
• False certificates, logbooks and letters used electronically.

Classification of fraud

Fraud classifications include but may not be limited to:

• Counterfeit of replica certificates – a certificate is manufactured by the fraudster, using raw materials, to appear as accurate as possible to convince officials that it is a genuine certificate.
• Alteration of genuine documents – this fraud takes one of two principle forms. The first is where a certificate is legitimately held by a seafarer, but is altered by that seafarer usually to improve the capacity or limitations. The second is where a genuine certificate is stolen and the personal details are altered to suit a new holder.
• Deception – this fraud occurs where a certificate, legitimate or stolen, has been photocopied. The photocopy has been altered. This altered copy is then presented to an employer as a “true copy” and employment is obtained on the basis of that copy. This also refers to certificates that have been scanned and altered electronically.
• Corruption – where a corrupt official has issued a genuine document to a seafarer. This is perhaps the hardest fraud to detect, especially if the document is then also registered on the database.
• Impersonation – Candidates for examinations sending impostors, probably more able and better qualified, to take the examinations on their behalf.
• Laundering – Where attempts have been made to use fraudulent certificates to obtain genuine ones e.g. forged certificates to obtain clean certificates through the NI’s revalidation process.

Policy

The NI has the right of acting, investigating, cancelling or refusal should we suspect any intent to commit fraud. This normally carries a penalty of being banned for a period of five years, but time can be more than this according to the type of fraud committed. The NI also reserves the right to consult the Dynamic Positioning Training Executive Group (DPTEG) in cases involving the DP training scheme or appropriate stakeholders for other certification or accreditation schemes.

Any irregularities detected should be reported immediately to the NI Certification Department Manager who coordinates all investigations both internally and externally. Each member of staff will be familiar with the different types of offences that may occur within their area of responsibility and be highly alert and vigilant. The Institute reserves the right to maintain a record of vessels, signatories, companies and persons involved in fraudulent activities, which will not be disclosed to the industry but shall be scrutinised and used appropriately when applications are received.

Until there is proof of definite intention to commit fraud, all information received will be handed in the strictest confidence. However, if an investigation results in proven fraud, the NI has the legal right to inform the industry.

Actions after fraud findings are confirmed

Applications and certificates that are found to be fraudulent will be revoked and the individual banned from the appropriate training scheme(s) for a period of up to five years. The NI reserves the right to impose a greater sanction depending on the fraud committed.

Other parties found involved in the fraud cases may also have their NI certificates revoked and may be banned from the system for a period of up to five years. The Institute reserves the right not to accept applications or verification letters from companies involved in previous fraudulent cases.

Any Certificate involved in a fraud case already issued by The Nautical Institute will be cancelled and the holder will be required to return his/her original documents to the NI.

The NI will keep all fraud case documents for legal purposes.

All NI accredited training centres and industry stakeholders will be made aware of the fraud via a circular and the details of the fraud will be revealed to the industry.