Panama, home to the largest ship registry in the world, has implemented stricter registration policies amidst pressure to crack down on oil smuggling. A recent executive decree issued by President Jose Raul Mulino allows for the revocation of national registration for maritime vessels facing sanctions from the US, UK, UN Security Council, or EU. Former US ambassador John Feeley praised the move, stating it is a positive step to protect Panama’s reputation and business climate.
The decree, aimed at maintaining a registry free of international sanctions, comes in response to increased scrutiny from Western countries. Panama has long been considered a “flag of convenience” state, attracting global shipping companies with its lax regulations and lower costs. However, recent sanctions imposed by the US on Panama-flagged vessels involved in illicit activities have prompted a crackdown on such practices.
Experts believe that Panama’s decisive actions will have a significant impact on vessel owners engaged in risky or illicit activities. Other “flag of convenience” states, such as Palau, have also taken steps to revoke registrations of vessels linked to sanctions. President Mulino has pushed back against international scrutiny, stating that it is unfair for Panama to be included in the EU’s list of non-cooperative tax jurisdictions.
The Panama Maritime Authority has been tasked with carrying out registry cancellations, with consequences for ships that lose their licenses including industry tracking and reporting. The executive decree is expected to prompt other flag states to review their regulatory frameworks and crack down on illicit activities in the maritime industry.
Source
Photo credit www.aljazeera.com