US Targets Iranian Aviation Sector With New Sanctions

The U.S. Department of the Treasury has designated 36 entities, including 27 Iranian airlines and alleged intermediaries in Kazakhstan, Malaysia, Türkiye, and the UAE, for supporting Iran’s aviation sector. The action, taken under Executive Order 13902, targets entities allegedly used to transport weapons and illicit cargo.

The move is significant for global businesses because Treasury’s Office of Foreign Assets Control (OFAC) also indefinitely suspended four general policies and licenses. These authorizations permitted certain transactions related to U.S.-origin aircraft overflights, emergency landings in Iran, and the temporary reexport of foreign aircraft to the country. The revocations substantially tighten restrictions and increase compliance risks. Concurrently, the Financial Crimes Enforcement Network (FinCEN) issued an alert to financial institutions with red flags for detecting sanctions evasion in the aviation industry.

OFAC reiterated its authority to impose strict-liability penalties and secondary sanctions on non-U.S. persons for violations. Companies in the aviation, finance, and logistics sectors should update screening protocols and diligence procedures to mitigate exposure.