The Panamanian government has issued a detailed response to growing criticism over its ship registry’s alleged role in facilitating the Iranian oil trade, emphasizing its ongoing efforts to enforce international sanctions and remove non-compliant vessels.
As the largest ship registry globally—with around 8,500 vessels—Panama has faced increased scrutiny, particularly from the NGO United Against Nuclear Iran (UANI). The organization claims that approximately 17% of the 542 ships it suspects of transporting Iranian oil operate under the Panamanian flag, warning this undermines global sanctions enforcement and poses a risk to regional and U.S. security.
In response, the Panama Maritime Authority (AMP) reported that it has removed over 650 vessels from its registry since 2019, with 214 ships deregistered in the past year alone, representing more than 12 million tons. These removals are attributed to newly accelerated procedures, rule changes, and increased authority granted to the AMP.
In October 2023, Panama empowered the AMP to unilaterally delist vessels whose owners appear on international sanctions lists, part of broader reforms to tighten oversight. Additional measures include:
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Sanctioning vessels that deactivate their AIS (Automatic Identification System) or Long-Range Identification and Tracking systems—common tactics to obscure movements.
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Introducing mandatory reporting of planned ship-to-ship oil transfers, frequently used by “dark fleet” tankers to disguise the origin of cargo.
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Expanding ship-to-ship monitoring of Panamanian-flagged tankers.
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Addressing broader compliance issues, including efforts to combat illegal, unreported, and unregulated (IUU) fishing.
Since 2019, Panama has also worked with other flag states—such as Liberia and the Marshall Islands—on information-sharing agreements to prevent “flag hopping,” a tactic used to evade sanctions enforcement by re-registering vessels under more permissive flags.
Despite these efforts, UANI has continued its campaign, asserting that Panama lacks “consistent, proactive enforcement” and urging immediate removal of its flag from all Iranian oil tankers.
Panama maintains that it adheres to IMO and United Nations standards, and collaborates closely with the U.S. government. The AMP has participated in discussions with the U.S. State Department, particularly under the Biden administration, to improve enforcement measures.
Panama reiterated that once a ship is deregistered, it loses the legal right to operate under the Panamanian flag, further emphasizing the seriousness of its enforcement strategy.
