The marine flag is the symbol of a vessel’s nationality, and it plays a significant role in the identification of the existing relationships between the vessel and a state. The flag demonstrates that a ship is subject to the legislation of the country, and it helps to find the location of the ship’s owners easily (Goldie, 1991, p. 64). The international law requires every vessel involved in the international trade to be registered in the state and comply with the regulations of the state which flag it carries. Moreover, “any country, consistent with international law, has the right to allow a vessel to fly its flag and to therefore bestow its nationality upon that vessel” (Shaughnessy & Tobin, n.d., p. 1). The states are responsible for the activities of the vessels that carry their flags. The flag of convenience (FOC) is the system that allows the vessel owners to avoid burdensome international legal regulations (Song, 2005). When the ships are involved in this system, they are not connected to the laws of countries where they are registered. It is found that FOC is beneficial for both owners of the vessels and the states that are in support of the system. “The FOC system thrives because of the fiercely competitive shipping market in which ship owners look for the cheapest and least regulated ways of running their vessels” (“Flags of convenience,” 2003, p. 48). Nowadays, FOC causes many problems for the international community. It raises the issues of national security, environmental protection, labour policies, and illegal immigration. International Regulations The United Nations Convention on the Law of the Seas (UNCLOS) is the legislation that deals with maritime laws and jurisdictions. UNCLOS is comprised of 320 articles that cover the issues of usage and allocation of marine resources (Hollis, 2010, par. 1). The Convention is a comprehensive document; nevertheless, it is not flawless. According to Article 91, “Ships have the nationality of the State whose flag they are entitled to fly. There must exist a genuine link between the State and the ship” (United Nations, n.d., p. 58). Flagging is meant to facilitate regulation of ships’ activities. Registration is the “administrative formality that grants nationality” (Shaughnessy & Tobin, n.d., p. 12). Overall, flagging may be regarded as a legal agreement of reciprocity between the vessel owner and the country of the flag according to which a ship is required to keep up with the national laws, and the state is responsible for the ship’s protection. In this way, the international legal norms and standards become incorporated into the regional legislation. The flag nations are obliged to regulate and control the compliance with the international shipping standards on both regional and supranational levels. Each country engaged in the marine trade activities should be bound to the UNCLOS legal controls and standards. However, the abidance with the international shipping standards implies taxes and other financial expenses. In an attempt to meet commercial interests, the FOC entities and nations frequently operate in a way that is contradictory to international law standards. By operating as “open registries,” FOC may significantly reduce costs and increase profitability (Shaugh