The Panama Maritime Authority (PMA) on Wednesday (30 September) announced that, after an internal investigation, it will automatically cancel the registration of any vessel found to be involved in illicit activities or that changes its flag in order to evade sanctions. 

This clarification follows the recent inclusion of seven Panamanian-flagged vessels on the list of the Office of Foreign Assets Control (OFAC).

Panama has adopted a series of strategies to reduce the inclusion of vessels on sanctions lists, including:

Panama has adopted a series of strategies to reduce the inclusion of vessels on sanctions lists, including:

• The monitoring and control section was moved to a protection department that is more aligned with its functions. The Control and Monitoring section was moved from the Department of Navigation and Maritime Safety to the Maritime Ship Protection Department, given its close relationship with international sanctions activities and the surveillance of the merchant fleet.
• In September 2024, the “Panama Flag Precheck Process” was published, a circular that establishes prerequisites for flagging and that allows due diligence to be carried out on the vessel, its owner and its operator.
• Panama signed the Registry Information Exchange Agreement (RISC) to prevent a ship from moving from one registry to another, seeking to commit some type of illicit activity or trying to evade compliance with imposed sanctions.

The General Directorate of Merchant Marine of the AMP is evaluating additional strategic measures that allow for the expeditious cancellation of the Panamanian flag of vessels with proven links to activities that go against national interests, international instruments or the shipping industry in general.

There are legal mechanisms used to cancel the registration of vessels included in sanctions lists, such as the one described in Article 49 of the General Merchant Marine Law 57, which establishes the causes for automatic cancellations, such as the use of the vessel for smuggling, illegal trade and piracy, among other crimes.

The Panamanian Shipping Registry will not negotiate with anyone who wants to use it improperly and will apply the established legal mechanisms to be able to act according to due process and legal certainty.

In January, it was reported that a group of US senators called PMA to investigate and de-flag tankers that are violating US sanctions on the Iranian oil trade. 

Citing data from United Against Nuclear Iran (UANI), the letter from the senators to PMA, stated that of the nearly 400 vessels they believe are aiding Iran, the letter reports that nearly half (189) are flagged in Panama.

 

Photo credit: Luis Gonzalez on Unsplash
Published: 3 October, 2024 

The US Treasury Department’s Office of Foreign Assets Control (OFAC) recently took action against Malaysian maritime agency Transmarine Navigation (M) Sdn. Bhd. (Transmarine).

Transmarine was accused of providing forged documents for the US-sanctioned Dawn II (IMO: 9185530), falsely showing the commodities on board were of Malaysian rather than Iranian-origin.

“Transmarine was also involved in the transportation of Iranian commodities aboard the US-sanctioned Reneez (IMO: 9232450) on behalf of Sa’id al-Jamal,” OFAC said in a statement. 

Transmarine was among the several companies, individuals, and vessels sanctioned for their involvement in the shipment of Iranian commodities, including oil and liquefied petroleum gas (LPG), to Yemen and the United Arab Emirates (UAE) on behalf of the network of Iran-based, Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF)-backed Houthi financial official Sa’id al-Jamal.

UAE-based K F D General Trading L.L.C. has similarly aided the al-Jamal network in arranging a shipment of Iranian commodities to the People’s Republic of China (PRC).

Transmarine and KFD General Trading L.L.C. are being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Sa’id al-Jamal.

“OFAC is also updating the Specially Designated Nationals and Blocked Persons List (SDN List) entry for the sanctioned vessel Artura (IMO: 9150365), which was responsible for shipping commodities for Sa’id al-Jamal, to reflect the changing of its name to OHAR,” it added. 

“The revenue from al-Jamal’s network helps finance the Houthis’ reckless targeting of shipping in the Red Sea and civilian infrastructure, which has led to grave consequences for both the region and the international community.”

“Today’s action underscores our continued commitment to disrupting Iran’s primary source of funding to its regional terrorist proxies like Lebanese Hizballah and the Houthis,” said Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence Bradley T. Smith. 

“Our message is clear: those who seek to finance these groups’ destabilising activities will be held to account.”

Note: The full statement by OFAC can be read here. 

 

Photo credit: tommao wang on Unsplash
Published: 2 September, 2024

United Kingdom authorities were on the lookout for illegal bunkering or illegal ship-to-ship fuel transfer amongst other activities involving North-Korean flagged vessels from mid to late June, according to the Ministry of Foreign Affairs of Japan on Monday (24 June).

The ministry said the Royal Navy HMS SPEY conducted monitoring and surveillance activities against illicit maritime activities, including ship-to-ship transfers with North Korean-flagged vessels prohibited by the United Nations Security Council resolutions (UNSCRs), in waters surrounding Japan. 

It was the twelfth time for the UK Royal Navy vessel to engage in such activities to take place since 2018.

“Japan welcomes these activities from the viewpoint of ensuring effective implementation of the relevant UNSCRs in solidarity with the international community toward the realisation of North Korea’s dismantlement of all weapons of mass destruction and ballistic missiles of all ranges in a complete, verifiable, and irreversible manner,” the ministry said. 

As Japan has also been conducting information gathering activities for vessels suspected of violating the UNSCRs, the ministry added that Japan works closely with relevant countries and international organisations, including the United Kingdom.

 

Photo credit: UK Ministry of Defence
Published: 25 June, 2024