Panama establishes zero-tolerance policy against the misuse of its flag
panamaconsulate 3 April, 2025 0 COMMENTS

The Panama Maritime Authority (PMA) is implementing necessary measures to refine its merchant fleet. These actions reflect the nation’s commitment to safeguarding its reputation, backed by the strength and expertise of a leading registry with over 100 years of history.
“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.
AMP’s Deputy Administrator, Alexander De Gracia, explained that to achieve this goal, the Panamanian Ship Registry has adopted a zero-tolerance policy against the improper use of vessel registration. This initiative includes key legal instruments such as Executive Decree No. 512 of 2024 and Resolution No. 106-003-DGMM, issued on January 3, 2025.
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.
Within this framework, the current administration will continue advancing regulatory adjustments to ensure a more precise and efficient oversight of registered vessels, in line with international guidelines and conventions governing the maritime sector.
Through these decisive actions, Panama reaffirms its commitment to the responsible and efficient management of its ship registry.