The Panama Maritime Authority (PMA) has deregistered 107 vessels from its registry due to international sanctions violations, with an additional 18 vessels set for removal.
This action is part of Panama’s intensified efforts to prevent sanctions evasion, particularly following the implementation of an Executive Decree issued in October 2024.
The new regulatory framework allows the PMA to immediately cancel vessel registrations when ships or their owners appear on international sanctions lists.
“This measure ensures that no vessel or shipowner linked to illicit activities operates under the Panamanian flag,” the PMA stated, emphasizing that legal protections for maritime mortgages and other rights remain intact.
With more than 8,700 vessels under its flag, Panama maintains the world’s largest ship registry, accounting for 15% of global merchant fleet tonnage.
Recent enforcement efforts have primarily targeted vessels associated with Russia’s Ukraine-related sanctions.
In late 2024, the PMA deregistered four LNG carriers linked to Russian gas producer Novatek.
This was followed by the removal of six more vessels after the UK imposed additional sanctions.
To bolster compliance, Panama has introduced several initiatives. In September 2024, it launched the “Panama Flag Precheck Process” to enhance due diligence for new registrations.
Additionally, the country joined the Registry Information Sharing Compact (RISC) to prevent vessels from “registry-hopping” to evade sanctions.
The revised deregistration process significantly improves upon previous procedures under the General Merchant Marine Law (Law No. 57), which required approximately three months to complete.
The prolonged processing time had previously affected international perceptions of the Panamanian flag.
Looking ahead, the Directorate General of Merchant Marine is conducting a comprehensive review of national legislation to further strengthen oversight mechanisms and ensure compliance with international conventions.
The enhanced pre-registration analysis now incorporates both technical criteria and thorough evaluations of vessel owners’ and operators’ backgrounds.
Additionally, the authority has implemented risk matrices and upgraded technological platforms to better identify potential links to illicit activities.
“Through these measures, Panama reaffirms its commitment to transparency, security, and the fight against the misuse of its flag for illicit activities,” the PMA affirmed.
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