Panama Purges 107 Ships

The Panama Maritime Authority (PMA) has officially deregistered 107 Panamanian-flagged vessels listed under international sanctions, with an additional 18 currently undergoing the deregistration process.

The deregistered vessels had been identified for compliance concerns or were listed on sanctions list issued by the US Office of Foreign Assets Control (OFAC), the EU and the UK.

To prevent high-risk vessels from entering the Panamanian Registry, the pre-registration analysis process has been strengthened to consider not only the vessel’s technical criteria but also the background and operational history of its owner and operator.

Additionally, risk matrices have been implemented, along with upgrades to technological platforms, to identify vessels potentially connected to illicit activities.

Historically, the deregistration of vessels involved in illicit activities was carried out under the General Merchant Marine Law (Law No. 57), specifically Article 49, which outlined the criteria for such procedures. However, the lengthy processing times, approximately three months, impacted the international perception of the Panamanian flag.

To expedite this process and prevent sanctioned vessels from continuing operations, the Panamanian Government enacted Executive Decree No. 512, enabling the immediate deregistration of ships whose owners or vessels appear on the international sanctions lists specified in the decree.

Currently, the Directorate General of Merchant Marine is reviewing national legislation to further strengthen the Panamanian Merchant Marine and ensure rigorous oversight in line with international conventions.

Panama reaffirms its commitment to transparency, security and the fight against the misuse of its flag for illicit activities.