OFAC sanctions Malaysian travel operator over Iran connections

The US Department of the Treasury’s Office of Foreign Assets Control (‘OFAC’) has sanctioned a Malaysia-based company, Mahan Travel, for acting for Mahan Air, an Iranian airline. Mahan Air was designated under Executive Order 13224 in October 2011 for ‘providing financial, material, or technological support for the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF)’, which was itself designated in 2007 for its support for terrorist organisations.

Mahan Travel and Tourism Sdn Bhd (Mahan Travel) is a general sales agent (‘GSA’) that provides reservations and ticketing services for Mahan Air from its Kuala Lumpur office. OFAC states that GSAs such as the designated company ‘are key to enabling Mahan Air’s international operations, especially in regards to conducting financial transactions on behalf of the airline.’

OFAC reminds the aviation community that GSA services, such as reservation and ticketing services, are ‘potentially sanctionable activities’. Other prohibited services include the procurement of aircraft parts and equipment, maintenance contracts, catering, freight-forwarding, and refuelling contracts.

OFAC’s press release can be found here:
https://home.treasury.gov/news/press-releases/sm423

OFAC’s Notice can be found here:
https://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Pages/20180709.aspx

Executive Order 13224 can be found here:
https://www.state.gov/j/ct/rls/other/des/122570.htm