Panama enforces tougher maritime sanctions with de-registration of 107 vessels

The Panama Ship Registry has announced the removal of 107 Panama-flagged vessels from its fleet, following their inclusion in international sanctions lists. Additional 18 vessels are currently in the process of de-registration.

This move comes as part of Panama’s enforcement of Executive Decree No. 512, issued on October 18, 2024, which grants the Panama Maritime Authority the authority to unilaterally cancel the registration of ships, shipowners, and individuals linked to sanctions, Caliber.Az reports via foreign media.

The de-flagged vessels had been flagged for compliance issues or were listed by prominent international sanctioning bodies, including the US Office of Foreign Assets Control (OFAC), the European Union, and the United Kingdom. The decision to remove these vessels was made in a bid to prevent any ship or shipowner involved in illicit activities from operating under the Panamanian flag.

Speaking at the Sea Asia Conference in Singapore, Ramon Franco, director of the Panama Ship Registry, emphasized that Panama is actively responding to the evolving challenges in the maritime industry. He stated, "We definitely are not going to be left behind in the face of current challenges of the industry and, of course, sanctions are one of them."

Executive Decree No. 512 enables the immediate cancellation of registration for vessels whose owners appear on sanctions lists, ensuring that the Panamanian registry remains free of high-risk or illicit vessels while still respecting the legal rights and registration of maritime mortgages.

In addition to the de-registration of vessels, Panama has taken steps to prevent high-risk ships from entering its registry. The pre-registration analysis process has been strengthened to evaluate not only the technical specifications of vessels but also the operational history and background of their owners and operators.

Furthermore, Panama has implemented risk matrices and upgraded its technological platforms to better identify vessels potentially involved in illicit activities. These measures underscore Panama's commitment to upholding international security standards and environmental regulations.

Currently, the Directorate General of Merchant Marine is reviewing national legislation to further enhance the performance and oversight of the Panamanian Merchant Marine. These regulatory reforms aim to ensure stringent compliance with international conventions, elevating the country's role in promoting safety and transparency within the global maritime industry.

By Vafa Guliyeva