Panama rejects accusations of facilitating Iran’s sanctions evasion

The Government of Panama on Monday (2 June) rejected accusations made by United Against Nuclear Iran (UANI) in recent publications circulated through media outlets and e-mails worldwide.

Panama Maritime Authority (PMA), called the claims made by Mark D. Wallace, CEO of UANI, as “misleading”. 

On 30 May, UANI accused Panama of its “longstanding role” in facilitating Iran’s illicit oil trade and urged Panama to de-flag all Iranian oil-smuggling vessels. According to UANI’s analysis, nearly one in five vessels suspected of transporting Iranian oil—17% or 94/542 of the total tracked—sails under Panama’s flag.

AMP, the entity in charge of the Panamanian Ship Registry and the governing body of the Panamanian maritime sector, reported it has removed more than 650 vessels from its registry since 2019, in compliance with the United Nations Convention on the Law of the Sea (UNCLOS) and as part of its efforts to combat the financing of terrorism and illegal, unreported, and unregulated fishing.

“The Government of Panama maintains close collaboration with the Government of the United States of America, through its Embassy in Panama and through direct communications with the Department of State, regarding the Ship Registry and other security matters of mutual interest,” it said in a statement. 

Furthermore, as part of its international commitments, a Memorandum of Understanding (MOU) known as the Registry of Information Sharing Compact (RISC) was signed in August 2019 between Liberia, Vanuatu, the Marshall Islands, Dominica, Antigua and Barbuda, Moldova, and Panama.

The agreement stipulates that when a flag registry cancels or initiates a sanction or cancellation process, or refuses to register a vessel due to sanctionable activity, the registry must immediately notify the other members of the vessel’s details, including a description of the sanctionable activity, in order to publicise the identity of vessels, companies, or groups acting against the interests of the international maritime community.

As a result of the signing of said MOU, the AMP issued Resolution No. 106-048-DGMM on 19 August 2019, establishing sanctions against any vessel of the Panama Registry that deliberately deactivates the Long-Range Identification and Tracking System (LRIT) and/or the Automatic Identification System (AIS) equipment.

Additionally, Panama has recently implemented strict new requirements for ship-to-ship (STS) oil transfer operations involving vessels under its flag, marking an important step in its efforts to combat sanctions evasion and illicit maritime activities. These new requirements are aligned with the standards of the International Maritime Organization (IMO) and the MARPOL Convention, reflecting Panama’s commitment to maritime security and operational transparency.

This measure follows the promulgation, in October 2024, of Executive Decree No. 512, which empowers the AMP to unilaterally deregister vessels whose owners appear on international sanctions lists. Since its promulgation to date, Panama has deregistered 214 vessels, representing more than 12 million Gross Register Tonnage (GRT).

“It is important to note that the AMP conducts investigations into compliance with international conventions ratified by the International Maritime Organization (IMO), due diligence, and recommendations from the United Nations Security Council Panel of Experts. Vessels that fail to comply with national regulations are subject to administrative and economic sanctions, and even cancellation of their registration (abandonment of the flag),” AMP added. 

Panama said it has complied and will continue to comply with the United Nations Convention on the Law of the Sea (UNCLOS) and its efforts to combat the financing of terrorism and illegal, unreported, and unregulated fishing. 

Related: Panama tightens STS oil transfer rules to ‘shut the door’ on shadow fleet

Photo credit: Panama Maritime Authority
Published: 4 June, 2025