A method for reducing effect of motion on electromagnetic signals detected while moving an electromagnetic receiver through a body of water includes measuring a parameter related to an amount of current passed through an electromagnetic transmitter to induce an electromagnetic field in subsurface formations. A magnetic field proximate the electromagnetic receiver is measured. A transmitter portion of the measured magnetic field is estimated from the measured parameter. A motion portion of the measured magnetic field is estimated from the measured magnetic field and the estimated transmitter portion. A voltage induced in the receiver is estimated from the estimated motion portion. Signals detected by the receiver are corrected using the estimated voltage.