Panama: 'we are not a refuge for sanctions evasion'

The Panama Maritime Authority’s (AMP) Directorate General of Merchant Marine has published a public notice saying it has "intensified its fleet cleanup efforts, removing from the registry those vessels that do not meet the required standards".

The flag state, one of the largest ship registries globally, has taken actions in recent months to expedite the removal of vessels deemed to be in breach of international sanctions. In October, Panama’s President Jose Raul Molino issued Executive Decree No 512, mandating the expedited cancellation of vessels on international sanctions lists. Specifically, the law mandates the cancellation of vessels or registered owners sanctioned in lists issued by or in the US Department of the Treasury’s Office of Foreign Assets Control, the United Nations Security Council and its committees, the EU’s Consolidated Financial Sanctions List and the UK’s Financial Sanctions Targets list.

In early December, the Panama Maritime Authority, which enforces shipping legislation in the Central American country, took action against six of the 30 vessels the United Kingdom included in its most recent sanctions package targeting Russia’s so-called ’shadow fleet’ of sanctions-evading tankers. 

• Panama expedites revokation of six vessels on UK sanctions list
• Panama to revoke licences for sanctioned ships

Noting its fleet is evaluated according to international bodies including MoUs in Paris, Tokyo, Mediterranean, Indian Ocean, Black Sea, United States Coast Guard, Caribbean, Riyadh and Abuja and the Viña del Mar Agreement, the AMP said in its "most recent assessments, Panama achieved 96.5% compliance with international standards in maritime safety and environmental protection. This result supports the quality of the Panama Ship Registry, ensuring a healthy fleet aligned with global regulations".

The AMP claimed its "strategy of optimising its vessels" has demonstrated "excellence and sustainability," and cited the most recent report from Clarksons Research’s World Fleet Monitor, "in which the country occupies a favorable position by flying 15.0% of the tonnage of the world’s merchant fleet".

“We have maintained a zero tolerance policy for any attempt to misuse the Panamanian registry. We are not a refuge for sanctions evasion. Our priority is to attract young and newly built vessels that comply with international regulations,” said AMP’s director general of the DGMM Ramón Franco.

Data from the DGMM indicate that the Panama Ship Registry reported a net growth of 468 vessels in 2024. According to the international platform IHS Markit, a total of 8,773 ships and 249.0M gt were reached at the end of the year.

"As part of the strategy to attract modern and sustainable vessels, 408 newly built vessels were registered last year, representing more than 9.4M gt. This increase is due to the exclusive benefits the Panama flag offers to this sector, as highlighted by Director Franco," the AMP said.