Panama Deregisters Over 650 Vessels to Strengthen Sanctions Compliance
Since 2019, Panama's Maritime Authority has removed more than 650 ships from its registry as part of intensified efforts to enforce international sanctions and tighten regulatory standards for vessels flying its flag. This comes as Panama maintains one of the world's largest ship registries, encompassing over 8,500 vessels.
Recent Withdrawals and Regulatory Actions
Among these, 214 vessels were delisted after new measures were introduced last year to streamline the enforcement of sanctions and respond more promptly to compliance issues. Ships removed from the registry are prohibited from sailing under Panama's flag, effectively restricting their maritime operations linked to Panama.
Addressing International Concerns Over Sanctions Violations
This move follows criticisms regarding Panama's role in allegedly facilitating sanction evasion. An independent organization previously highlighted that nearly 20% of vessels suspected of transporting Iranian oil were registered under Panama's flag, raising concerns about Panama's enforcement rigor.
Responding to such concerns, Panama has taken steps to strengthen oversight, including:
- Collaborating with flag states like Liberia and the Marshall Islands to exchange data on vessels whose registrations have been canceled or denied due to sanctions issues.
- Implementing measures against ships that disable their transponders to avoid tracking.
- Increasing controls over ship-to-ship transfer operations, particularly to counteract the use of "dark-fleet" tankers circumventing sanctions and environmental regulations.
International Pressure and Collaboration with the United States
The United States has intensified pressure on countries with large vessel registries to enforce sanctions more strictly. There have been notable criticisms of the expansion of untraceable tanker fleets transporting sanctioned oil, coupled with threats concerning strategic maritime infrastructure, such as the Panama Canal.
In response, Panama is actively cooperating with the U.S. to improve registry oversight and ensure compliance with global sanctions and security measures.
