US lays out red flags for illicit Iranian aircraft acquisitions

US authorities are working to block channels Iranian airlines use to circumvent sanctions and acquire civil aircraft and spare parts. A bulletin from the Financial Crimes Enforcement Network (FinCEN), issued on 8 September, says Iranian operators have obtained aircraft through deceptive schemes involving front companies in Europe, the Middle East, and other regions, along with layered ownership transfers and multiple re-registrations.

The bulletin gives financial institutions several warning signs. These include recent incorporation of aviation, logistics, or technology firms with opaque ownership and limited online presence, especially if such businesses are registered at a residential address. Suspicion should also arise if documentation shows an airframe in extended storage or frequent re-registration, or movement between several jurisdictions, particularly in Central Asia.

Other red flags include customers claiming authorization from the Office of Foreign Assets Control without evidence, and general trading companies in free-trade zones that do not normally deal in aviation goods attempting to order such equipment. Use of sanctioned Iranian or Russian companies for logistics is also a concern.

The bulletin notes that no single red flag is determinative, and financial institutions should consider all facts and circumstances. It specifically accuses certain Iranian carriers, notably Mahan Air.