The government of Panama denied information about its assistance to Iran in the circumvention of sanctions.
On May 30, a non-profit organization United Against Nuclear Iran (UANI) issued a statement calling on Panama to stop facilitating Iran’s illegal oil trade.
“Panama has facilitated billions of dollars of Iran’s oil sales that the regime has used to arm its proxies, spread terror, and kill innocents. Panama should immediately face full sanctions and forfeiture of assets and penalties associated with the billions of dollars of Iran’s oil that Panama has assisted in smuggling around the world… The Panama flag flying on vessels around the world is stained with blood… UANI’s analysis reveals that nearly one in five vessels suspected of transporting Iranian oil – 17% or 94/542 of the total tracked-sails under Panama’s flag,” stated UANI.
Panama’s response was swift. On June 2, the Government of Panama, through the Panama Maritime Authority (PMA), an organization responsible for the registration of vessels in Panama, announced that more than 650 vessels had been removed from its registry since 2019 in accordance with the UN Convention and as part of efforts to combat terrorism financing.
As part of international commitments, a memorandum of understanding was signed between Panama, Liberia, Vanuatu, Marshall Islands, Dominica, Antigua & Barbuda, and Moldova in August 2021. The agreement states that if the flag state cancels or starts the sanction process, it must immediately notify the other countries about the vessel’s details.
Panama has recently introduced strict new requirements for ship-to-ship oil transfer operations involving vessels flying its flag. In March 2025, PMA canceled the registration of 107 tankers under the flag of Panama that are under international sanctions from the United States, Great Britain, and the European Union due to suspicions of involvement in Russia’s “shadow fleet”.
