The Panama Maritime Authority (PMA) has officially removed 107 Panamanian-flagged vessels from its registry due to their inclusion in international sanctions lists, with an additional 18 vessels currently undergoing deregistration.
This action is in line with Executive Decree No. 512, enacted on October 18, 2024, which empowers the PMA to unilaterally revoke the registration of vessels, as well as individuals and shipowners, found on these sanctions lists.
The deregistered vessels were flagged due to compliance violations or were identified on watchlists issued by the U.S. Office of Foreign Assets Control (OFAC), the European Union, and the United Kingdom.
In the past, vessel deregistration due to illicit activities was governed by Panama’s General Merchant Marine Law (Law No. 57), specifically Article 49, which set forth the criteria for such actions. However, the process took approximately three months, which impacted the reputation of the Panamanian flag in the international maritime community.
To address this, the Panamanian government introduced Executive Decree No. 512, allowing for the immediate removal of vessels whose owners or operators are listed on international sanctions lists. This swift action prevents sanctioned vessels from continuing their operations under the Panamanian flag.
This measure ensures that no vessel or shipowner involved in illegal activities can operate under Panama’s flag, while still preserving the legal rights of registered maritime mortgages and the interests of other involved parties.
In addition, Panama has strengthened its pre-registration procedures to prevent high-risk vessels from entering the Panamanian Registry. The enhanced process now examines not only a vessel’s technical criteria but also the operational history and background of its owners and operators.
Furthermore, risk matrices and upgraded technological platforms have been implemented to identify vessels potentially linked to illicit activities. These improvements reinforce Panama’s commitment to upholding international security standards and environmental protection.
The Directorate General of Merchant Marine is also reviewing national legislation to further fortify the Panamanian Merchant Marine, ensuring robust oversight in line with international conventions. These regulatory updates are designed to enhance fleet performance and guarantee compliance with safety standards.
Through these decisive actions, Panama reaffirms its commitment to transparency, security, and combating the misuse of its flag for illegal purposes, solidifying its leadership position in the global maritime industry.
