The Panama Maritime Authority has taken significant steps to enhance compliance with U.S. sanctions and implement stricter regulations by removing over 650 vessels from its registry since 2019. This action includes the withdrawal of 214 ships in the past year alone, which reflects Panama’s commitment to enforcing sanctions more effectively. Notably, once a ship is removed from Panama’s registry, it can no longer operate under the nation’s flag. This move comes in response to criticism from the non-governmental organization United Against Nuclear Iran (UANI).
UANI recently expressed concern that Panama has not done enough to combat vessels that violate sanctions, particularly those involved in transporting Iranian oil. According to UANI, nearly 20% of ships suspected of carrying Iranian oil are registered under Panama’s flag, which they argue poses a threat to global sanctions compliance and undermines regional and U.S. security. In 2019, Panama signed an agreement with other flag states such as Liberia and the Marshall Islands, enabling the exchange of data regarding vessels whose registrations were canceled due to potential sanction breaches. The country has also taken measures against vessels that deliberately disable their transponders to evade tracking.
In May, the authority announced tightened controls on ship-to-ship operations involving Panama-flagged vessels, reacting to a rise in the use of “dark-fleet” tankers that aim to bypass sanctions and environmental regulations. The U.S. has intensified its efforts to hold countries with large vessel registries accountable for enforcing sanctions. U.S. officials, including former President Trump, have criticized the emergence of dark-fleet tankers and have even threatened to take control of the Panama Canal if necessary. Panama’s commitment to collaborate with the United States on these regulatory issues is part of its broader strategy to uphold maritime security and compliance with international regulations.