Panama’s government has issued an Executive Decree ordering the cancellation of ships or registered owners included in international sanction lists from the Panama Ship Registry.
The Panama Maritime Authority (AMP) announced that a legal mechanism has been established that will allow the immediate cancellation of the registration and navigation patent for international or domestic service of vessels of the national merchant fleet that are included in sanction lists.
Additionally, any other document required for navigation that has been issued by the AMP will also be cancelled.
On 18 October, Executive Decree No. 512 was published in the Official Gazette, ordering the cancellation of ships or registered owners included in:
- Sanctions lists issued by the Office of Foreign Assets Control (OFAC) of the Department of the Treasury of the United States of America.
- United Nations Security Council List of Persons and Entities Associated with Terrorism and its Financing and List of Vessels Designated by Committees of the United Nations Security Council.
- European Union Sanctions Lists – EU Consolidated Financial Sanctions List.
- United Kingdom (UK) sanctions list – Consolidated List of Financial Sanctions Targets in the UK.
Regarding the cancellation process, the Directorate General of Merchant Marine (DGMM) will issue a report to the AMP Administrator, with the recommendation to proceed with the cancellation of the vessel’s registration. After that, the Administrator must grant authorization to the DGMM to continue the process, through a reasoned resolution.
If the vessel has one or more mortgages in the General Directorate of Public Registry, this registration will be kept to ensure that the creditor can exercise his rights. At the same time, financial institutions (banks) will also be notified.
“Organizations recognized by the Republic of Panama or subject to its jurisdiction are prohibited from providing classification and/or certification services to vessels that are in the process of being deregistered or have been cancelled,” said AMP in its announcement.
Moreover, AMP noted that Executive Decree 512 does not replace the measures established for the cancellation of vessels issued in other provisions related to the Panama Ship Registry.
