Developing countries are losing billions of dollars due to illegal, unreported and unregulated (IUU) fishing, according to a new study by the Financial Transparency Coalition (FTC).

IUU fishing is a major driver of the marine ecosystem’s destruction and accounts for one-fifth of the global fisheries’ catches, worth up to $23.5bn (£20bn) annually, the third most lucrative natural resource crime after timber and mining. The report entitled “Fishy networks: uncovering the companies and individuals behind illegal fishing globally”, warns that developing countries lose billions of dollars in illicit money flows directly linked to this practice every year.

The study reveals that the top 10 companies involved in IUU fishing are responsible for nearly a quarter of all reported cases: eight are from China, one is from Colombia and another from Spain.

“Illegal fishing is a massive industry directly threatening the livelihoods of millions of people across the world, especially [those] living in poor coastal communities in developing countries already affected by the Covid-19 pandemic, the cost-of-living crisis and the impact of climate change,” said Matti Kohonen, one of the report’s authors and the executive director of the FTC.

Overall, global losses due to IUU fishing are estimated to be up to $50bn (£44bn), according to one study. IUU fishing represents around 20% of the global fish catch, according to a 2013 report by the Pew Trust, thus playing a key role in overfishing. The greatest declines in fish stocks are expected to happen in the coastal regions that are most food insecure and more dependent on artisanal fishing for protein.

The Guardian said that the report urges the EU, the US and Japan – which together account for 55% of the seafood market – to ramp up their commitment to tackle IUU fishing by eliminating the drivers that enable the financial secrecy to happen in the first place, such as the use of shell companies, joint ventures and flags of convenience.

The largest proportion of IUU takes place in west Africa, with the Financial Times reporting previously that IUU fishing in the region harms livelihoods and food supplies with the most damaging activity conducted under EU deals.

The High-Level Panel for the Sustainable Ocean Economy (The Ocean Panel) identifies ownership and financial secrecy as a key driver for IUU fishing, as reported in Maritime-Executive. “Ownership transparency is part of the solution towards ending IUU fishing, especially in Africa, which is one of the most affected regions by this illicit trade,” recommends The Ocean Panel.

• The press release from the Financial Transparency Coalition can be read here.

• A short excerpt from a BBC World Service piece can be listened to here.

• Click here to read the executive summary.

• For further information see the full report, “Fishy networks: uncovering the companies and individuals behind illegal fishing globally”