Panama issues Decree For Immediate Cancellation Of Sanctioned Vessels

Panama President Jose Raul Molino has issued an executive decree allowing the Panama Ship Registry to cancel any vessel in all lists related to the dark fleet.

The move comes two days before the President travels to Europe to address the inclusion of Panama in the European blacklist on tax evasion.

The Executive Decree will allow the immediate cancellation of registration of vessels under the Panama flag which are sanctioned by the US or the European Union.

The Executive Decree 512 of October 18, 2024, orders the cancellation of all the vessels included in the following lists:

The US Treasury ‘s OFAC list of sanctions-Specially designated National and Block persons List-Non-SDN consolidated sanctions list,

List of persons and entities related to terrorism and its financing of the United Nations Security Council and the list of vessels designated by the UN’s security committees,

The EU consolidated financial lists-Consolidated list of financial sanctions targets in the UK.

The Ship Registry said it will identify the vessels and proceed immediately to their cancellation of the register.

This Executive Decree will allow the Ship Registry to avoid the long and bureaucratic cancellation process that could take up to three or four months and sometimes even more.

“It gives the registry an expedite form of cancellation, with due process and respecting naval mortgages and their mortgagees,” said Panama’s Maritime Law Association (PMLA) President Joaquin de Obarrio.

Panama-flagged vessels have repeatedly appeared in the sanctions lists raising questions about its slowness to respond effectively to the issue of the dark fleet.