Under Scrutiny: The New GAO Recommendations for FAA Aircraft Registration

The owner can be an individual or a legal entity such as a corporation, limited liability company, or owner trust, but in each case, the owner must meet certain eligibility requirements such as U.S. citizenship or permanent legal residence.4 Registry procedures and practices must comply with federal statutes and regulations, as well as international civil aviation requirements focused on safe operation and other national or international registration considerations. The GAO analyzed a wide spectrum of sources, including certain laws, regulations, FAA policies, reviews of reports, Department of Justice (DOJ) press releases, news articles, and Registry data from fiscal years 2010 through 2018.11 It also interviewed officials from the FAA, DOJ, and Department of Homeland Security, as well as selected representatives of aviation industry associations and certain Registry intermediaries that facilitate aircraft registrations for others (e.g., trust companies, banks, and "a registered agent"). The five risk indicators identified by the GAO were: "(1) registrations using registered agent address, (2) registrations using opaque ownership structures, (3) aircraft registration addresses located in countries identified by the Department of State as associated with major illicit drug production and money laundering, (4) OFAC data on individuals and entities subject to U.S. sanctions, and (5) NTSB safety accident and incident reports. According to the GAO, an ownership structure is "opaque" if it affords limited transparency as to the person who ultimately owns and controls the aircraft.18 Ownership structures considered by the GAO included common types of business entities such as limited liability companies, limited partnerships, and statutory or common law trusts.