Panama Takes Action Against Sanctioned Vessels, Drawing Praise from US Official
Panama has issued a new executive decree that will strip maritime vessels of their domestic licences and registrations if they face global sanctions, Al Jazeera reports.
This decision comes amidst growing Western pressure on the country to crack down on activities like oil smuggling.
The decree, signed by President Jose Raul Mulino on October 18, empowers the Panama Maritime Authority (PMA) to revoke the national registration of any vessel sanctioned by the United States, the United Kingdom, the United Nations Security Council, or members of the European Union.
John Feeley, former US ambassador to Panama, lauded the move as a “welcome step by Panama’s new government, which is working hard to improve the business climate.” Panama boasts the largest ship registry in the world since 1993 and is home to the bustling Panama Canal, making it a key player in global maritime shipping.
However, Panama’s reputation as a “flag of convenience” state, where ship owners can register vessels with lax regulations and lower costs, has drawn criticism. This practice has allowed international actors to bypass stricter rules in their home countries.
With over 8,000 ships registered to Panama, the country’s maritime authority now faces the challenge of enforcing this new policy. The decree aims to ensure that Panama is not facilitating illicit activities and to strengthen its standing with international partners.
