46 U.S.C. § 56101 — Approval required to transfer vessel to noncitizen

(a) Restrictions. (1) In general, unless another law provides an exception, a person may not — without the Secretary of Transportation's approval — (A) sell, lease, charter, deliver, or otherwise transfer, or agree to transfer, an interest in or control of a U.S.-documented vessel (or one last documented under U.S. law) to someone who isn't a U.S. citizen; or (B) place such a vessel under a foreign country's registry, or let it be operated under a foreign country's authority. (2) Exceptions. This rule does not apply to a vessel that has only ever been used for pleasure, or only as a fishing, fish-processing, or fish-tender vessel. (b) Approval Before Documentation. To help someone get financing for a vessel that will be documented under chapter 121, the Secretary may give this approval even before the vessel is documented. (c) Exceptions. A person can place a vessel under foreign registry without the Secretary's approval if either: (1)(A) the Secretary and the Secretary of Defense together determine that at least one replacement vessel — of equal or greater military capability and equal or greater size — is being U.S.-documented by the same owner, and (B) that replacement vessel is not more than 10 years old when documented; or (2) an operating agreement covering the vessel under chapter 531 has expired. (d) Status of Prohibited Transaction. Any sale, charter, or transfer that violates this section is legally void — it has no effect. (e) Penalties. (1) Criminal penalty: someone who knowingly sells, charters, or transfers a vessel in violation of this section can be fined, imprisoned for up to 5 years, or both. (2) Civil penalty: violators can also be made to pay the government up to $10,000 for each violation. (3) Forfeiture: the vessel itself can be seized and permanently taken by the government if someone knowingly sells, charters, or transfers it, or places it under foreign registry or foreign control, in violation of this section. (f) Foreign Vessel Charters for Passenger Vessels. The Maritime Administration must publicly post, on its website: (1) a detailed summary of each request asking whether a passenger vessel charter is already covered by a general approval issued under this section; and (2) the Administration's final decision on each request, after giving the public notice and a chance to comment.