Panama establishes a policy of “zero tolerance” in the face of improper use of its flag


News from Panama / Friday, April 4th, 2025

The Maritime Authority of Panama (AMP), reported on Tuesday on the measures that are still being implemented to purify its merchant fleet and send a message of the solidity and experience of the country with a leading record with more than 100 years of experience.

Meanwhile, the deputy administrator of the AMP, Alexander De Gracia explained that to achieve this objective, the Panamanian Ship Registry has established a policy of zero tolerance against the misuse of the ship registration, implementing key instruments, such as Executive Decree No. 512 of 2024 and Resolution No. 106-003-DGMM of January 3, 2025.

Our vision is to have a renewed fleet, with younger ships, that use cleaner energy; the application of rules that establish more expeditious procedures to cancel the registration of infringinging, polluting or opaque antecedent ships; greater monitoring of the fleet and updating of the data of Panamanian flag boats,” said Berrocal.

Under Executive Decree No. 512, once the General Directorate of Merchant Marine (DGGM), is aware that a ship belonging to our merchant navy or its owner, appear in one of the lists of international sanctions mentioned in this legal instrument, a cancellation process will be initiated. Since its implementation, the Executive Decree has been applied to 125 ships, of which 107 have been canceled and another 18 are being processed for cancellation.

Of these vessels withdrawn from the Registry, 83 were on the list of the Office of Foreign Assets Control (OFAC) of the United States of America (U.S.), 32 on the European Union warning list and 10 on the United Kingdom sanctions lists.

Other mechanisms implemented by the AMP

In addition to Executive Decree No. 512, Panama has other mechanisms for the cancellation of ships linked to illegal activities, such as:

  • Article 49 of the General Merchant Marine Law (Law No. 57 of 2008): which establishes as grounds for cancellation of office, the use of the ship for smuggling, illegal trade or piracy, or to commit any other crime.
  • Executive Decree No. 245 of November 21, 2022, which establishes actions and measures against fishing vessels, activities related to fishing and related activities registered in the merchant navy of the Republic of Panama, linked to illegal, undeclared and unregulated (INDNR) fishing.
  • Executive Decree No. 32 of February 4, 2018, through which actions and measures are taken against ships registered in the merchant navy of the Republic of Panama and maritime companies linked to the financing of terrorism.

Under these parameters, this administration will continue to work on various regulatory adjustments that will allow a more precise and efficient monitoring of ships registered in Panama, in accordance with the international guidelines and conventions that govern maritime jurisdiction.

With these actions, Panama demonstrates its commitment to the efficient administration of its registry.

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