Panama Deregisters Over 100 Sanctioned Vessels in Major Compliance Crackdown

The Panama Maritime Authority (PMA) has taken action by deregistering 107 vessels from its registry due to international sanctions violations, with an additional 18 vessels in the pipeline for de-registration.

The move comes as part of Panama’s aggressive stance against sanctions evasion, particularly following the implementation of an Executive Decree issued last October. This new regulatory framework empowers 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, noting that the action maintains protections for maritime mortgages and legal rights.

Panama ranks as having the world’s largest ship registry by ship count, with more than 8,700 vessels representing 15% of global merchant fleet tonnage.

Recent enforcement actions have specifically targeted vessels associated with Russia’s Ukraine-related sanctions. In late 2024, the authority cancelled registrations for four LNG carriers linked to Russian gas producer Novatek, followed by the deregistration of six additional vessels after UK sanctions were imposed.

To strengthen its compliance framework, Panama has implemented several key initiatives. In September 2024, the authority launched the “Panama Flag Precheck Process” to enhance due diligence for new registrations. The country has also joined the Registry Information Sharing Compact (RISC), aimed at preventing vessels from “registry-hopping” to evade sanctions.

The new deregistration process marks a significant improvement over previous procedures under the General Merchant Marine Law (Law No. 57), which required approximately three months to complete. The extended processing time had previously impacted international perceptions of the Panamanian flag.

Looking ahead, the Directorate General of Merchant Marine is conducting a comprehensive review of national legislation to further reinforce 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 connections 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 authority stated.

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