"US Treasury sanctions India-based firm for supporting Iran's Mahan Air"
OFAC (Office of Foreign Assets Control)
US Treasury body that administers and enforces economic and trade sanctions
SDN List (Specially Designated Nationals)
OFAC blacklist cutting designated entities off from the US financial system
The United States has maintained a comprehensive sanctions architecture against Iran for decades, rooted in concerns over Iran's nuclear programme, support for designated terrorist organisations, and the activities of the Islamic Revolutionary Guard Corps (IRGC). The IRGC was designated a Foreign Terrorist Organisation (FTO) by the US in 2019 — a rare designation applied to a state military body — making any material support to it a potential criminal and civil liability under American law. The legal backbone of US sanctions is the International Emergency Economic Powers Act (IEEPA), which grants the executive branch authority to regulate international commerce in response to declared national emergencies. The Office of Foreign Assets Control (OFAC) within the US Department of the Treasury is the primary enforcement body, maintaining the Specially Designated Nationals (SDN) list that effectively cuts designated entities off from the US financial system and dollar-denominated transactions globally.
Mahan Air, Iran's largest private airline, has been on the OFAC SDN list since 2011, designated for providing logistical and transportation support to the IRGC's Quds Force — the external operations arm responsible for Iran's proxy networks across West Asia. Despite this designation, Mahan Air has continued to operate internationally through a network of General Sales Agents (GSAs) — third-party commercial entities that sell tickets, manage bookings, and provide logistical support on behalf of the airline in foreign markets. Targeting these GSA networks is a key tool in the US strategy of maximum pressure against Iran.
The concept of secondary sanctions is central to understanding why this development matters beyond the US-Iran bilateral relationship. Primary sanctions prohibit US persons and entities from transacting with designated targets. Secondary sanctions, by contrast, threaten to penalise non-US entities — including Indian companies — that conduct business with sanctioned parties, even if those transactions have no direct US nexus. The threat of being cut off from the US financial system, losing access to dollar clearing, or being barred from US markets is powerful enough to compel compliance from businesses in third countries.
A General Sales Agent (GSA) is a commercial intermediary authorised to represent an airline in a specific territory — selling tickets, issuing boarding passes, managing cargo bookings, and providing ground-level commercial support. …
With reference to the US Office of Foreign Assets Control (OFAC), consider the following statements:
1.OFAC operates under the US Department of State.
2.The Specially Designated Nationals (SDN) list maintained by OFAC effectively bars listed entities from the US financial system.
3.Secondary sanctions can penalise non-US entities that transact with OFAC-designated parties even without a direct US nexus.
Which of the statements given above is/are correct?
Mahan Air, the Iranian airline, has been on the US sanctions list primarily because of its alleged links to which of the following?
Which of the following best describes the role of a General Sales Agent (GSA) in the context of international aviation?
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