The Panama Maritime Authority (PMA) has introduced stricter regulations to safeguard the integrity of its ship registry following sanctions placed on seven Panamanian-flagged vessels by the U.S. Office of Foreign Assets Control (OFAC). This comes after vessels were implicated in sanctions evasion, particularly in transporting Iranian oil, reports gCaptain.
Panama’s Registry and Global Influence
With over 8,000 vessels accounting for 250 million gross tons (GT), Panama maintains the world’s largest ship registry. In response to recent sanctions, the PMA is committed to swiftly canceling the registration of vessels involved in illegal activities or changing flags to evade sanctions, aiming to preserve the credibility of its registry.
Strengthened Monitoring and Regulatory Framework
Panama has undertaken several initiatives to enhance its regulatory framework. The PMA has restructured its monitoring efforts by moving the Monitoring and Control Section under the Maritime Ship Protection Department. Additionally, Panama introduced a new “Panama Flag Precheck Process” in September 2024 to bolster due diligence during ship registration and joined the Registry Information Sharing Compact (RISC) to combat registry-hopping by vessels evading sanctions.
Legal Mechanisms for Swift Action
The General Directorate of Merchant Marine, under PMA, is considering further actions to swiftly remove vessels linked to illicit activities. Panama has existing legal frameworks, such as Article 49 of the General Law 57 of the Merchant Marine, that enable automatic cancellations of vessel registrations when warranted.
Recent U.S. Sanctions and Targeted Vessels
The U.S. OFAC recently sanctioned multiple vessels involved in transporting Iranian crude oil and liquid petroleum gas to Syria and East Asia, linked to organizations such as the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) and Hezbollah. Among the sanctioned ships were several Panama-flagged vessels, including ETERNAL SUCCESS, ETERNAL 8, ETERNAL PEACE, SERENE I, and others.
Panama’s Commitment to Compliance
The PMA has made it clear that it will not negotiate with parties using its registry for unlawful purposes. The authority will enforce its legal mechanisms to ensure due process while maintaining the credibility of its ship registry amid increasing pressure to comply with international sanctions regulations.
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Source: gCaptain
