Panama to Deregister Ships on International Sanctions Lists

Panama’s president, Jose Raul Molino, has signed an executive decree that enables the Panama Ship Registry—the world’s second-largest shipping registry—to cancel the registration of any vessel listed on international sanctions lists.

The Panama Maritime Authority (PMA) announced that this new decree provides a legal framework allowing for the immediate revocation of both the registration and navigation permits for ships in the national fleet that appear on these sanction lists.

Furthermore, any other navigation-related documents issued by the PMA will be revoked under the same conditions.

The decree specifically targets vessels or registered owners that are sanctioned by the U.S. Treasury’s Office of Foreign Assets Control, as well as those listed by the United Nations Security Council for ties to terrorism or its financing. Ships listed by United Nations Security Council committees will also face cancellation.

Additionally, vessels listed under European Union sanctions, including the EU Consolidated Financial Sanctions List and the UK sanctions list, will be subject to immediate deregistration by the PMA.

Organizations recognized or governed by Panama are also prohibited from providing classification or certification services to vessels undergoing deregistration or already cancelled.

This new decree builds upon existing regulations concerning the cancellation of vessels and does not replace any previous orders, according to the PMA.