PANAMA · SANCTIONS
Key Facts
- —The country Panama, home of the canal, registers foreign-owned ships under its flag through its Maritime Authority.
- —Why it matters A ship’s flag is its legal home, so Panama’s move shows US sanctions reaching shipping registries.
- —Why now Panama’s Maritime Authority acted one day after the US Treasury listed the ships on 21 October.
- —What happened Panama says it has started cancelling all seven ships’ registrations under a 2024 decree.
- —What it means for you US firms must still block the seven ships; a US licence allows wind-down until 20 November.
- —Still open When the cancellations take effect, and whether the owner challenges the US listing.
- —Power Index Panama ranks 11th of 14 in The Rio Times Latin America Power Index, with 34.2 points (October 2026 edition).
Panama has started the process of removing seven sanctioned ships from its flag registry after the US Treasury sanctioned them over alleged links to Iran’s shipping trade. Panama’s Maritime Authority, known as the AMP, announced the step on Thursday, 22 October, a day after the Treasury’s sanctions office, OFAC, listed the ships on Wednesday, 21 October 2026.
For US readers the move shows how far American sanctions now reach into the shipping world, because every merchant ship sails under one country’s flag and that flag gives it a legal home. Losing the Panama flag takes that home away from the seven sanctioned ships, while US banks, insurers and shippers must already keep away from them.
We covered the original US action in Panama Firm and 7 Ships Face US Sanctions. This article covers what Panama has said and done since.
In Plain English
- Flag registry: the list of ships that a country lets sail under its flag and its laws.
- OFAC: the US Treasury office that runs American sanctions lists.
- Shadow fleet: the Treasury’s term for ships it says help hide where oil and other cargo come from.
- Wind-down licence: a US permit that lets firms close existing dealings with a sanctioned party by a set date.
What Panama’s Maritime Authority Said
The AMP said in a statement dated 22 October that it took immediate action after OFAC listed a Panamanian firm, its partners and seven ships on the Panama registry. It said it has started the process of cancelling the registration of all seven ships under Executive Decree No. 512 of 18 October 2024, the rule it also used in early October to cancel sanctioned ships.
The authority also said it will take “the corresponding measures” against the sanctioned company, without saying what those measures are. The statement gives no date by which the seven registrations will be cancelled.
The AMP added that it has tightened its checks before a ship is allowed to join the registry, so that unwanted actors do not enter the Panama flag. Every ship, owner, operator and charterer must now pass a full due diligence process, it said, and it repeated its “zero tolerance” policy toward misuse of the registry.
The trade outlets Data Portuaria and PortalPortuario carried the announcement on 22 October, and Infobae and El Capital Financiero on 23 October. We checked the wording against the AMP’s own statement on its website and against Infobae’s report.
What the US Treasury Says the Seven Ships Did
The seven ships are Anemos, Gloris, Pride, Destiny, Flamingo 1, Harmony and Prince, all Panama-flagged cargo vessels built between 1999 and 2011. OFAC lists them as blocked property in which a Panama- and Greece-based manager, Roxette Maritime Shipping and Trading, has an interest.
The Treasury says Anemos, Gloris and Pride shipped Iranian-origin goods in the past year, including petrochemicals and steel products. Its release makes no such claim for the other four ships, which are blocked because of their link to Roxette.
Roxette’s corporate agent is the Panama and Greece law firm Karnakis and Karnakis, which the Treasury also sanctioned together with five people. The Treasury says the firm registered shipping companies that own “shadow fleet” vessels responsible for hundreds of millions of dollars of Iranian steel, petroleum and petrochemicals.
These are US allegations and sanctions designations, not court findings. None of the sources we reviewed carries a response from the firm, Roxette or the named individuals.
A Second Batch of Sanctioned Ships in Two Weeks
This is the second time in October that Panama has moved against ships sanctioned by the Treasury. On Thursday, 8 October, OFAC sanctioned 17 vessels in the same campaign, three of them Panama-flagged: Bitu, Starway and Mackerel.
La Estrella de Panamá reported that day that the AMP confirmed the three ships were on the US list, applied restrictions to them in its system and began cancelling their registrations on its own initiative. Together with the seven ships announced this week, that makes 10 Panama-flagged ships in two US actions.
The Treasury calls the campaign Operation Economic Outcast, which Treasury Secretary Scott Bessent announced on 24 August 2026 and named Economic D-Day. It says the aim is to cut the remaining economic lifelines of the Iranian government, working with the European Union, the United Kingdom and Gulf partners.
The Treasury release also says a US financial crimes unit, FinCEN, used its first administrative subpoena of this kind to investigate a Greek bank’s possible ties to Iran. It does not name the bank, and no finding against it has been announced.
The 20 November Wind-Down Deadline
OFAC issued two licences on 21 October that allow wind-down dealings until 12:01 a.m. eastern standard time on Friday, 20 November 2026. General License GG covers Karnakis and Karnakis, and General License HH covers the persons and vessels blocked on that day, including the seven ships.
License HH allows safe docking, crew safety, emergency repairs and the offloading of cargo that is not of Iranian origin and was loaded on or before 21 October. Its notes list registration and flagging among the services that count as wind-down activity, but they do not authorise new commercial contracts.
Nothing we reviewed says how the AMP’s cancellation timetable fits with that deadline. Sanctioned ships that lose the Panama flag and are still trading would have to find another flag, and no source names one.
What It Means for You
If you work at a US company, bank, insurer or freight broker, treat the seven sanctioned ships and the listed firms as blocked, and check any vessel by its IMO number: Anemos 9205952, Destiny 9385491, Flamingo 1 9474199, Gloris 9449510, Harmony 9449522, Pride 9487407 and Prince 9548316. Treasury also warns that foreign banks that knowingly handle significant transactions for listed parties risk US secondary sanctions.
For Panama watchers, the case shows the country’s shipping regulator acting on a US sanctions list within days of its publication. Our guides Panama Geopolitics Explained 2026 and Panama in Latin America, Its Role, Weight and Alliances set out the wider picture.
The Panama Canal is run by a separate body, the Panama Canal Authority, and nothing we reviewed links this action to canal transits. Our report on the canal’s record year, Panama Canal Revenue Jumps 16.6% to US$6.6B, and our Panama City guide cover daily life and business in the capital.
What Is Not Known
The AMP’s statement gives no cancellation date and does not say what measures it will take against the sanctioned company. It dates Decree 512 to 18 October 2024, while La Estrella de Panamá gave 28 October 2024 on 8 October, so we use the authority’s own date.
It is not known when the seven registrations will be cancelled, which flag the sanctioned ships may take next or whether any of them is still at sea. No response from Karnakis and Karnakis, Roxette or the named individuals has been found.
The sources do not say what the AMP will do against the sanctioned company, or whether other Panama-registered ships are under review. The next OFAC listing will show whether Panama faces a third batch.
Frequently Asked Questions
Why is Panama removing seven ships from its registry?
The US Treasury sanctioned the ships on 21 October over alleged links to Iran’s shipping trade. Panama’s Maritime Authority says it is acting under a 2024 decree on ships listed by sanctions.
Which ships are affected?
They are Anemos, Gloris, Pride, Destiny, Flamingo 1, Harmony and Prince, all Panama-flagged cargo ships. The Treasury says the first three carried Iranian-origin goods in the past year.
Has Panama already cancelled the sanctioned ships’ registrations?
Panama says it has started the process, not that it is finished. No cancellation date has been published in the sources we reviewed.
Can US companies still deal with these sanctioned ships?
No, except for wind-down steps allowed by two OFAC licences until 20 November 2026. New contracts with the ships or the listed firms are not authorised.
Does this affect the Panama Canal?
Nothing we reviewed links the action to canal transits. The canal is run by the separate Panama Canal Authority.
Sources: US Treasury press release, Operation Economic Outcast Targets Iran’s Shadow Fleet Networks, 21 October 2026; OFAC recent actions, 21 October 2026; OFAC General License HH; OFAC General License GG; Panama Maritime Authority statement, 22 October 2026; PortalPortuario, 22 October 2026; Infobae, 23 October 2026; La Estrella de Panamá, 8 October 2026; Telemetro, 21 October 2026.
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error