Background on the Panamanian Maritime Authority (AMP)
The Panamanian Maritime Authority (AMP) is the regulatory body responsible for overseeing and maintaining the Panamanian flag state’s maritime sector. As one of the world’s leading flag states, Panama’s registry is home to over 7,000 vessels, accounting for approximately 3.6% of the global merchant fleet. The AMP ensures that these vessels adhere to international maritime regulations and safety standards.
Who is the US Office of Foreign Assets Control (OFAC)?
The Office of Foreign Assets Control (OFAC) is a financial intelligence and enforcement agency of the United States Department of the Treasury. OFAC administers and enforces economic and trade sanctions against targeted foreign countries, entities, and individuals based on US foreign policy and national security concerns.
AMP’s Response to OFAC Sanctions
On Monday, the AMP announced that it has initiated a process to cancel the registration of 17 vessels listed by the OFAC. This action comes after a recent inclusion of a company, a Panamanian national, and these 17 vessels registered under the Panama Ship Registry in the OFAC sanctions list.
AMP’s Commitment to Zero Tolerance Policy
In a statement, the AMP reaffirmed its commitment to a zero-tolerance policy regarding any misuse of the Panamanian flag and the exclusion of vessels, companies, suppliers, and other interested parties that appear on internationally recognized sanction lists acknowledged by the Panamanian government.
Strengthened Control Mechanisms
To prevent unwanted actors from flying the Panamanian flag, the AMP has reinforced its control mechanisms. The authority emphasized that any vessel seeking entry into the Panamanian Ship Registry, as well as their owners, operators, and charterers, must undergo a thorough due diligence process.
Key Actions and Impact
- AMP identified 17 vessels under sanctions by the OFAC.
- The decision to cancel their registrations was made in response to the recent inclusion of a Panamanian company and these vessels on the OFAC sanctions list.
- AMP has reinforced its control mechanisms to prevent unwanted entities from flying the Panamanian flag.
- All vessels, owners, operators, and charterers seeking registration under the Panamanian flag must now undergo a rigorous due diligence process.
Key Questions and Answers
- Q: Who is involved in this process? A: The Panamanian Maritime Authority (AMP) is taking action against a Panamanian company and 17 vessels registered under the Panamanian flag, which have been sanctioned by the US Office of Foreign Assets Control (OFAC).
- Q: Why is AMP taking these actions? A: AMP has reaffirmed its commitment to a zero-tolerance policy regarding any misuse of the Panamanian flag and the exclusion of entities involved in international sanctions.
- Q: How will AMP prevent unwanted actors from flying the Panamanian flag? A: The authority has strengthened its control mechanisms and mandated a thorough due diligence process for all vessels, owners, operators, and charterers seeking registration under the Panamanian flag.
