Panama has issued a new executive decree that empowers the Panama Ship Registry to cancel the registration of vessels linked to international sanctions. The move comes ahead of President Jose Raul Molino’s upcoming trip to Europe, where he will address Panama’s potential inclusion in the European Union's tax blacklist.
The decree, Executive Decree 512, signed on October 18, 2024, enables the immediate removal of ships sanctioned by the U.S. Treasury’s OFAC, the European Union, the United Nations Security Council, and the UK’s consolidated financial sanctions list.
Panama’s Ship Registry will now bypass lengthy administrative processes that previously delayed deregistration by several months. "It gives the registry an expedited form of cancellation, with due process and respecting naval mortgages and their mortgagees,” said Joaquin de Obarrio, President of the Panama Maritime Law Association (PMLA).
This decisive action responds to growing criticism over Panama-flagged vessels repeatedly appearing on international sanctions lists, raising concerns about the registry's effectiveness in handling the issue.
The decree is part of Panama’s efforts to align with international compliance standards and avoid further scrutiny from global regulators.