Panama Takes Bold Step: Over 100 Sanctioned Ships Removed from Registry in Compliance Initiative

The Panama Maritime Authority (PMA) is making waves by deregistering 107 vessels from its fleet due to violations of international sanctions, with another 18 ships set for removal. This decisive action aligns with Panama’s firm approach against sanctions evasion, especially after an Executive Decree was rolled out last October. This decree gives the PMA the authority to swiftly cancel registrations for any vessel or owner listed on international sanctions lists.In a statement, the PMA emphasized that this initiative ensures no ship or owner involved in illegal activities can operate under the Panamanian flag while still safeguarding maritime mortgages and legal rights. Notably, Panama boasts the largest ship registry globally by number of vessels—over 8,700—accounting for about 15% of the world’s merchant fleet tonnage.

Recent efforts have particularly focused on ships linked to Russia amid ongoing Ukraine-related sanctions. As a notable example, in late 2024, four LNG carriers tied to Russian gas giant Novatek had their registrations revoked, followed by six more after new UK sanctions were enacted.

To bolster compliance measures further, Panama has introduced several initiatives. In September 2024, they kicked off a “Panama Flag Precheck Process” aimed at tightening due diligence for new vessel registrations. Additionally, joining the Registry Facts Sharing Compact (RISC) helps prevent vessels from dodging regulations through “registry-hopping.”

This new deregistration process is a significant upgrade from previous methods outlined in Law No. 57 of general Merchant Marine Law that coudl take up to three months—a delay that affected how other nations viewed the Panamanian flag.

Looking forward, officials at the Directorate General of Merchant Marine are reviewing national laws to enhance oversight and ensure adherence to international standards. The revamped pre-registration analysis now includes technical assessments alongside thorough checks on vessel owners and operators’ backgrounds. Moreover, risk matrices and advanced tech platforms have been implemented to better spot potential links to illicit activities.

“Through these actions,” stated PMA representatives, “Panama reaffirms its dedication to clarity and security while combating misuse of its maritime flag.”

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