The Panama Maritime Authority (PMA) has taken significant steps to enhance security and compliance within its registry, particularly in response to illegal activities and evasion of sanctions. This move comes after an internal investigation revealed that seven Panamanian-flagged vessels were added to the US Treasury’s Office of Foreign Assets Control (OFAC) list. The discovery prompted the PMA to take immediate and rigorous action to strengthen its enforcement procedures and rid its registry of any vessels involved in illegal operations. As part of these measures, the PMA relocated its Monitoring and Control Section from the navigation and safety department to the ship protection department to better align with international sanctions and enhance merchant fleet surveillance. Panama also introduced the ‘Panama Flag Precheck Process,’ a new step to ensure comprehensive due diligence on ships, owners, and operators before a vessel can be flagged. Essentially, Panama is reinforcing its commitment to maintaining the integrity of its maritime operations and international reputation.
Strengthened Enforcement Procedures
In a bid to combat illegal activities and ensure compliance, the Panama Maritime Authority has relocated its Monitoring and Control Section from the navigation and safety department to the ship protection department. This restructuring aims to better align Panama’s monitoring capabilities with international sanctions and enhance its surveillance over the merchant fleet. The relocation is expected to increase the efficiency of the monitoring system, making it more adept at identifying and acting upon any discrepancies or illegal activities tied to vessels flying the Panamanian flag. The recent addition of seven Panamanian-flagged vessels to the US Treasury’s OFAC list has served as a wake-up call, underlining the necessity for more stringent controls and proactive monitoring strategies.
A significant component of the new enforcement procedures is the Panama Flag Precheck Process, introduced to ensure thorough due diligence on ships, owners, and operators before a vessel can be flagged. This precheck process acts as a preventative measure, aimed at scrutinizing the backgrounds and affiliations of those who wish to register under the Panamanian flag. By ensuring that only legitimate and compliant vessels enter its registry, Panama aims to prevent misuse and enhance the credibility of its maritime operations. In addition to these steps, Panama has also signed the Registry Information Sharing Compact (RISC), designed to curb the practice of vessels frequently changing registries to continue illicit activities or evade sanctions. This shows a concerted effort on Panama’s part to integrate international frameworks into its regulatory measures.
Legal and Legislative Measures
In response to the increasing pressure to ensure maritime security and regulatory compliance, the General Directorate of Merchant Marine of the PMA is considering additional measures aimed at swiftly deregistering vessels with verified links to activities against national interests, international regulations, or the shipping industry. The introduction of legal frameworks has been pivotal in these efforts. For instance, the PMA has established streamlined procedures to expedite the cancellation of registrations for vessels involved in crimes such as smuggling, illegal trade, and piracy. Through these legislative measures, Panama signals its zero-tolerance policy towards illegal activities and ensures robust enforcement of international norms and standards.
Moreover, the PMA’s stance has been unequivocal: it will not negotiate with those seeking to misuse the Panamanian Ship Registry. The authority has made it clear that any vessel found to be involved in illegal or non-compliant activities will face severe consequences, including immediate deregistration. This decisive approach underscores Panama’s commitment to eliminating the misuse of its ship registry and maintaining legal and regulatory integrity. The swift and rigorous actions taken by the PMA are not merely reactive but part of a broader strategy to reinforce maritime security and uphold international compliance.
Commitment to Upholding Maritime Integrity
The Panama Maritime Authority (PMA) has made major efforts to boost security and compliance within its registry, responding to illegal activities and sanctions evasion. This initiative follows an internal probe that found seven Panamanian-flagged vessels listed by the US Treasury’s Office of Foreign Assets Control (OFAC). The discovery led the PMA to take swift and strict actions to tighten enforcement and eliminate any ships engaged in illegal activities from its registry. In line with these measures, the PMA shifted its Monitoring and Control Section from the navigation and safety department to the ship protection department, aiming to better comply with international sanctions and heighten surveillance of its merchant fleet. Additionally, Panama introduced the ‘Panama Flag Precheck Process,’ a new procedure ensuring thorough vetting of ships, owners, and operators before flagging a vessel. These steps reflect Panama’s strong commitment to upholding the integrity of its maritime operations and maintaining its international standing.
