Audio problem: When Mashkov's men grab Steve, you can hear him say "Come on, Charlie", but his lips aren't moving at all. (01:39:35)
Audio problem: When Skinny Pete warns Charlie over the phone, he says "mother freaking", which is a clear dub over. (01:15:30)
Answer: They are flying the Italian Civil Ensign, which is used by civilians on water. The emblem in the center of the Italian flag when used on water are the Arms Of Savoy, the former royal Family of Italy.