The Panama Maritime Authority (PMA) has introduced a legal mechanism enabling the immediate revocation of registration and navigation licenses for vessels in the national merchant fleet that appear on international sanctions lists.
Additionally, any other navigation documents issued by the Panama Maritime Authority will also be invalidated.
The executive decree no. 512 was published on October 18 in the Official Gazette, outlining the cancellation of vessels or registered owners listed in sanctions Lists issued by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), in the United Nations Security Council’s Lists of Individuals and Entities Associated with Terrorism and Its Financing, as well as Vessels Designated by the Security Council Committees, in European Union Sanctions – EU Consolidated Financial Sanctions List and in the United Kingdom Sanctions – Consolidated List of Financial Sanctions Targets in the UK.
The Directorate General of Merchant Marine (DGMM) will submit a report to the PMA Administrator, recommending the cancellation of the vessel’s registration.
Upon review, the Administrator will authorize the DGMM to proceed with the cancellation through a formal resolution.
If the vessel has any active mortgages registered with the Directorate General of Public Registry, those will remain intact to ensure creditors can enforce their rights. Meanwhile, financial institutions (banks) will be informed of the vessel’s status.
Organizations recognized by or under the jurisdiction of the Republic of Panama are prohibited from offering classification or certification services to vessels undergoing or subject to cancellation.
It’s important to note that Executive Decree 512 does not replace other existing regulations concerning vessel cancellation under the Panama Ship Registry.
Source: Panama Ship Registry
