Panama culls more than 100 sanctioned vessels from flag fleet

The Panama Maritime Authority (AMP) said it has cancelled 107 Panama-flagged vessel registrations included on international sanctions lists, with the cancellation process said to be underway for another 18 ships.

"This action is being carried out in compliance with Executive Decree No. 512 of 18 October 2024, which authorises the AMP to automatically cancel the registration of vessels, as well as of individuals and registered owners, that appear on international sanctions lists," the AMP said.

The Panama regulator said all of the vessels removed from the Panama Registry of ships had been reported for sanctioned trading or were on warning lists issued by the US Treasury’s office of foreign assets control, the European Union or the United Kingdom (UK).

The AMP said its new procedure for revocation of vessel registration was brought about by the "lengthy processing times (approximately three months)" that "affected the perception of the Panama flag".

After issuing its executive decree in October 2024, Panama followed up on UK sanctions listings with the revocation of registration for six vessels in December 2024. 

And in February 2025, Panama stressed it had made improvements to the quality of its registered fleet and claimed it is "not a refuge for sanctions evasion".

Panama said its executive decree aims to expedite ship cancellation processes to prevent sanctioned vessels from continuing to operate. The Panama Maritime Authority enforces the shipping legislation in the Central American country.

Panama also said it has strengthened its preregistration processes for vessels to include both the technical criteria for vessels as well as information and history on vessels’ owners and operators.

"Risk matrices have also been implemented, as well as technological platforms strengthened to identify vessels with possible links to illicit activities, reinforcing Panama’s commitment to international safety and pollution prevention regulations," the AMP said.

Panama said it would continue to work to strengthen its policy and monitoring of its merchant fleet, with the country’s General Directorate of the Merchant Marine said to be currently reviewing national legislation to ensure it is in line with international conventions.

"With these measures, Panama reaffirms its commitment to transparency, security and the fight against the misuse of its flag in illicit activities, consolidating its position as a benchmark in the international maritime industry," the AMP said.