On 4 November 2014, OFAC updated its Frequently Asked Question (“FAQ”) No 417, which addresses payments and facilitation of payment to Iranian civil aviation authorities for overflights and emergency landings. OFAC clarified that US sanctions would not apply to such payments so long as (i) the relevant aircraft is owned by a non-US person and registered outside the United States and (ii) the relevant transactions do not involve the US financial system unless the transactions fall with the scope of a license. OFAC notes, however, that any involvement by persons on the SDN list, including Iranian financial institutions designated pursuant to EO 13224 or EO 13382, would result in the participants’ having sanctions exposure.

The FAQ states that US persons and US-owned or controlled foreign entities remain prohibited from participating in any transactions for payment of overflights or emergency landings.

OFAC FAQ 417