api tanker conference piracy session may 21, 2012 provided by: john d. kimball blank rome llp...

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API Tanker Conference Piracy Session May 21, 2012 Provided by: John D. Kimball Blank Rome LLP +1.212.885.5259 [email protected]

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The U.S. government is acutely aware of the dilemma that ship owners face when ships and sailors are taken hostage. While the safety of the crew is critical, we must all acknowledge that submitting to pirate ransom demands only ensures that future crews will be taken hostage. The United States has a long tradition of opposing the payment of ransom, and we have worked diligently to discourage or minimize ransom payments. While some may consider this the cost of doing business, every ransom paid further institutionalizes the practice of hostage-taking for profit and promotes its expansion as a criminal enterprise. We strongly encourage flag States, shipowners and private parties involved in hostage crises to seek assistance from appropriate U.S. government sources in their crisis management procedures. Statement of Andrew J. Shapiro Assistant Secretary, Bureau of Political-Military Affairs Department of State March 27, 2012

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API Tanker Conference Piracy Session

May 21, 2012

Provided by:John D. KimballBlank Rome [email protected]

Chart showing ransoms paid each year to Somali pirates

Source: Report from Foreign Affairs Committee, House of Commons, January 5, 2012

The U.S. government is acutely aware of the dilemma that ship owners face when ships and sailors are taken hostage. While the safety of the crew is critical, we must all acknowledge that submitting to pirate ransom demands only ensures that future crews will be taken hostage. The United States has a long tradition of opposing the payment of ransom, and we have worked diligently to discourage or minimize ransom payments. While some may consider this the cost of doing business, every ransom paid further institutionalizes the practice of hostage-taking for profit and promotes its expansion as a criminal enterprise. We strongly encourage flag States, shipowners and private parties involved in hostage crises to seek assistance from appropriate U.S. government sources in their crisis management procedures.

Statement of Andrew J. ShapiroAssistant Secretary, Bureau of Political-Military Affairs

Department of State March 27, 2012

Intervention by Secretary of State Clintonat London Conference on Somalia 2/23/12

Third, we must continue to fight piracy, which is still rampant off Somalia's shores . . . And we welcome the UK's initiative to create an international task force to discourage the payment of ransoms to pirates and other groups to eliminate the profit motive and prevent the illicit flow of money and its corrosive effects.

Statement of Prime Minister Cameron at London Conference on Somalia 2/23/12

Let’s create an international taskforce on ransoms.

And let’s set the ultimate ambition of stopping these payments because in the end they only ensure that crime pays.

18 USC § 1202. Ransom money

(a) Whoever receives, possesses, or disposes of any money or other property, or any portion thereof, which has at any time been delivered as ransom or reward in connection with a violation of section 1201 of this title, knowing the same to be money or property which has been at any time delivered as such ransom or reward, shall be fined under this title or imprisoned not more than ten years, or both. * * *

• (c) For purposes of this section, the term “State” has the meaning set forth in section 245(d) of this title.

ConclusionQuestions?

John D. KimballBlank Rome LLP

The Chrysler Building405 Lexington Avenue

New York, NY 10174-0208Phone: +1.212.885.5259

Fax: +1.917.332.3730Email: [email protected]

www.BlankRomeMaritime.com