Panama Maritime Authority Deregisters 107 Vessels to Enhance Compliance and Security

The Panama Maritime Authority (PMA) has taken decisive action by deregistering 107 Panamanian-flagged vessels that were identified for compliance concerns or listed on sanctions lists issued by the US Office of Foreign Assets Control (OFAC), the EU, and the UK. An additional 18 vessels are currently undergoing the deregistration process to ensure that high-risk vessels are not allowed to enter the Panamanian Registry. To strengthen the pre-registration analysis process, not only technical criteria but also the background and operational history of the vessel’s owner and operator are now considered. Risk matrices and technological upgrades have been implemented to identify vessels potentially involved in 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 address this issue 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 international sanctions lists specified in the decree. The Directorate General of Merchant Marine is currently reviewing national legislation to further strengthen the Panamanian Merchant Marine and ensure rigorous oversight in line with international conventions.

Panama is committed to transparency, security, and combating the misuse of its flag for illicit activities. The government’s proactive approach to deregistering vessels involved in compliance concerns or sanctions demonstrates its dedication to upholding international standards and protecting the integrity of the Panamanian Registry. By implementing stricter pre-registration analysis processes, risk matrices, and technological upgrades, Panama aims to prevent high-risk vessels from entering its Registry and ensure a more secure maritime environment.

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