The Panama Maritime Authority (PMA) is implementing necessary measures to refine its merchant fleet to safeguard its reputation.

Under Executive Decree No. 512, if the Directorate General of the Merchant Marine (DGGM) becomes aware that a vessel within Panama’s merchant fleet, or its owner, appears on one of the international sanctions’ lists referenced in this legal framework, a deregistration process is immediately initiated.

Since its enactment, the decree has been applied to 125 vessels, resulting in 107 cancellations, with 18 additional cases currently under review.

Of the vessels removed from the registry, 83 were listed by the U.S. Office of Foreign Assets Control (OFAC), 32 were on the European Union’s watchlist, and 10 appeared on the United Kingdom’s sanctions lists.

Beyond Executive Decree No. 512, Panama has additional mechanisms in place for deregistering vessels linked to illicit activities, including:

• Article 49 of the General Law of the Merchant Marine (Law No. 57 of 2008): This law mandates the automatic cancellation of registration for vessels involved in smuggling, illegal trade, piracy or any other criminal activity.

• Executive Decree No. 245 of November 21, 2022: Establishes actions and measures against fishing vessels, fishing-related activities and associated operations within Panama’s merchant fleet found to be engaged in illegal, unreported and unregulated (IUU) fishing.

• Executive Decree No. 32 of February 4, 2018: Implements actions and measures against merchant fleet vessels and maritime companies linked to the financing of terrorism.

Through these actions, Panama reaffirms its commitment to the responsible and efficient management of its ship registry.

“Our vision is to maintain a modernized fleet with younger vessels powered by cleaner energy sources. We are enforcing regulations that establish expedited procedures for deregistering non-compliant, polluting, or opaque-background vessels, while also enhancing fleet monitoring and updating data on Panama-flagged ships,” stated Rina Berrocal, Acting Director General of the Merchant Marine.