THE Panama Maritime Authority (AMP) has officially deregistered 107 Panama-flagged vessels that appear on international sanctions lists. An additional 18 are also undergoing the re-registration process.

AMP said the deregistered vessels had been flagged for compliance concerns or were listed on watchlists issued by the Office of Foreign Assets Control, the European Union and the UK.

The previous legal framework to deregister vessels was lengthy, AMP admitted, which “impacted the international perception of the Panamanian flag”.

The world’s second-biggest flag registry came under fire from US politicians earlier in the year, prompting director general of merchant marine, Ramon Franco, to defend his registry. 

“We are not a refuge for sanctions evasion. Our priority is to attract young and newly built vessels that comply with international regulations,” he said back in February.

But a new decree means vessels can be deregistered immediately if the vessel or its owners appears on international sanctions lists specified in the decree.

“This measure ensures that no vessel or shipowner linked to illicit activities operates under the Panamanian flag, while still respecting the registration of maritime mortgages and the legal rights of the parties involved,” AMP said.

In addition to the deflagging of the vessels, AMP said it has strengthened its pre-registration analysis process to highlight vessels “potentially connected to illicit activities”.