On November 4, 2014, the US Treasury Department's Office of Foreign Assets Control (OFAC) issued additional guidance regarding payments or facilitation of payments made for overflights of or emergency landings in Iran.

The guidance clarifies that overflight or emergency landing payments to Iranian civil aviation authorities are not subject to US sanctions if they:

  1. Do not involve the US financial system;
  2. Do not involve persons listed on OFAC's Specially Designated Nationals and Blocked Persons List (SDN List) with the exception of certain Iranian government political subdivisions, agencies or instrumentalities and depositories; and
  3. Relate to payment of charges for services  rendered by the Iranian Government  in connection with overflights or emergency landings in Iran of aircraft that are not:

(a) owned by US entities or individuals; or
(b) registered in the US.

The guidance notes that existing OFAC regulations address payments that may be made by US entities and individuals, and foreign entities they own or control, for overflights or emergency landings in Iran.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.