The Panama Maritime Authority (AMP) has confirmed its strict policy to automatically cancel the registration of any vessel found involved in illicit activities or attempting to change its flag to evade sanctions.
This action follows the recent listing of seven Panama-flagged vessels by the US Office of Foreign Assets Control (OFAC).
These ships were accused of transporting sanctioned Iranian crude oil and liquefied petroleum gas (LPG) to Syria and East Asia, allegedly on behalf of the Islamic Revolutionary Guard Corps-Quds Force (IRGC-QF) and Hezbollah, according to the OFAC report.
In response, Panama has implemented a series of measures to prevent vessels under its flag from being included in sanctions lists. The country has shifted its Monitoring and Control Section to a newly aligned protection department under the Department of Maritime Vessel Security, which closely monitors international sanctions and merchant fleet activities.
In September 2024, Panama introduced the “Panama Flag Precheck Process,” a circular that sets prerequisites for flagging vessels, allowing thorough due diligence on the ship, its owner, and operator. Additionally, Panama signed the Registry Information Sharing Agreement (RISC) to prevent vessels from evading sanctions by moving between registries.
The AMP’s General Directorate of Merchant Marine, which oversees the Panama Ship Registry, is also reviewing new measures for the rapid de-flagging of ships linked to illegal activities. Under Panama’s Merchant Marine General Law, article 49, ships used for smuggling, illegal trade, or piracy, among other offences, may be de-flagged through legal mechanisms.
The AMP reiterated that the Panama Ship Registry will not negotiate with parties seeking to misuse its services and will enforce legal actions following due process and legal certainty.
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