Panama establishes zero tolerance policy against misuse of its flag

The Panama Maritime Authority (AMP) is taking the necessary measures to clean up its merchant fleet. The implementation of these measures reflects the commitment to preserving the country's reputation, backed by the strength and experience of a leading registry with over 100 years of experience.

 "Our vision is to have a renewed fleet, with younger vessels that use cleaner energy; the implementation of regulations that establish more expeditious procedures for canceling the registration of vessels that are in violation of regulations, polluting vessels, or those with opaque records; greater fleet monitoring; and updating the data on Panamanian-flagged vessels," said Rina Berrocal, Director General of the Merchant Marine.

The deputy administrator of the AMP, Alexander De Gracia, explained that to achieve this goal, the Panamanian Vessel Registry has established a zero-tolerance policy against the misuse of the vessel registry, implementing key instruments such as Executive Decree No. 512 of 2024 and Resolution No. 106-003-DGMM of January 3, 2025.

Under Executive Decree No. 512, once the General Directorate of the Merchant Marine (DGGM) becomes aware that a vessel belonging to our merchant marine or its owner appears on one of the international sanction’s lists mentioned in this legal instrument, a cancellation process will be initiated. Since its implementation, the Executive Decree has been applied to 125 vessels, of which 107 have been cancelled, and another 18 are currently in the process of being cancelled.

Of these vessels removed from the Register, 83 were on the United States Office of Foreign Assets Control (OFAC) list, 32 were on the European Union's warning list, and 10 were on the United Kingdom's sanctions list.

In addition to Executive Decree No. 512, Panama has other mechanisms for the cancellation of vessels linked to illicit activities, such as:

-       Article 49 of the General Merchant Marine Law (Law No. 57 of 2008): which establishes as grounds for ex officio cancellation, the use of the vessel for smuggling, illegal trade or piracy, or to commit any other crime.

-       Executive Decree No. 245 of November 21, 2022, which establishes actions and measures against fishing vessels, fishing-related activities, and related activities registered in the merchant marine of the Republic of Panama, linked to illegal, unreported, and unregulated (IUU) fishing.

-       Executive Decree No. 32 of February 4, 2018, which takes action and measures against vessels registered in the merchant marine of the Republic of Panama and maritime companies linked to the financing of terrorism.

The administration says that under these parameters, it will continue working on various regulatory adjustments that will allow for more precise and efficient monitoring of vessels registered in Panama, in accordance with the international guidelines and conventions governing maritime jurisdiction.