The Financial Crimes Enforcement Network today issued an alert for financial institutions on identifying and reporting procurement networks supporting Iran’s aviation industry. The alert was issued in conjunction with the announcement that the Treasury Department was imposing sanctions on 36 entities tied to Iran’s aviation sector.
According to the alert, front companies posing as technology, aviation or logistics companies in third-country jurisdictions will purchase aircraft components and related dual-use items from the U.S. or other Western countries for export to Iran. Bank Secrecy Act data indicate that Iranian airlines rely on freight forwarding agents and smugglers in transshipment jurisdictions such as Türkiye or the United Arab Emirates to transport the items.
The alert lists seven potential red flags to help financial institutions detect and report suspicious activity that may be tied to Iran’s aviation sector. In addition, the alert flags other related alerts and encourages financial institutions that detect potential sanctions violations to submit notifications to the Office of Foreign Assets Control through its Disclosure Portal, in addition to filing SARs, as appropriate.
