Panama
Central American flag-of-convenience registry; vessels designated in OFAC's 19 May 2026 Iran SDN round.
Last refreshed: 19 May 2026
Why does OFAC keep sanctioning Panama-flagged tankers without cutting off Iran's oil exports?
Timeline for Panama
Mentioned in: OFAC SDN round skips mainland refineries again
Iran Conflict 2026- Why are Panama-flagged ships used to evade Iran oil sanctions?
- Panama's flag-of-convenience registry allows any operator to register vessels under Panamanian law regardless of nationality. This obscures beneficial ownership, making it difficult to trace Iranian crude exports and delay OFAC designation.Source: OFAC
- Which Panama-registered ships were sanctioned in the Iran oil round?
- OFAC's 19 May 2026 SDN round designated entities in Panama alongside Liberia, Nevis, UAE, Marshall Islands and Hong Kong. Named vessels included BRIGHT GOLD, FEADSHIP, LUNA LUSTER, MIDAS and QUANTUM STAR.Source: OFAC
- How big is the Panama ship registry?
- Panama operates the world's largest ship registry by tonnage, with over 9,000 vessels registered under its flag. The Autoridad Marítima de Panamá administers the open registry.Source: Autoridad Marítima de Panamá
Background
Panama operates the world's largest ship registry by tonnage, with over 9,000 vessels flagged under its banner. The flag-of-convenience system allows ship operators globally to register under Panamanian law regardless of owner nationality, at lower cost and with fewer manning restrictions than most flag states. This makes Panama one of the primary registries through which sanctioned operators — including those moving Iranian crude — route their fleets to obscure beneficial ownership.
In OFAC's 19 May 2026 SDN round, entities registered in Panama were among over two dozen designated across multiple jurisdictions including the UAE, Marshall Islands, Liberia, Nevis, Hong Kong and the UK. The round targeted vessels linked to Iranian oil movements, including ships named BRIGHT GOLD, FEADSHIP, LUNA LUSTER, MIDAS and QUANTUM STAR. The absence of mainland Chinese refineries in this round continued a deliberate pattern from three prior OFAC rounds.
Panama's maritime registry authority, the Autoridad Marítima de Panamá, has cooperated selectively with international sanctions enforcement but faces structural difficulty policing beneficial ownership in a registry of its scale. Repeat designation of Panama-flagged vessels in US sanctions rounds has not substantially altered the registry's attractiveness for evasion.
