Management Advisory on Registration of Aircraft to U.S. Citizen Trustees in Situations Involving Non-U.S. Citizen Trustors and Beneficiaries
This management advisory informs the Federal Aviation Administration (FAA) of additional concerns we identified regarding the registration of aircraft owned under trusts for non-U.S. citizens. After our audit of FAA’s Civil Aviation Registry (OIG Report Number FI-2013-101, June 27, 2013) in which we reported that FAA cannot identify key information—such as the identity of trustors and beneficiaries—for many of the aircraft registered under these trusts, we conducted additional work and determined that in some cases this information is also not available from the trustees. Furthermore, FAA does not always comply with its requirements when registering these aircraft. The lack of complete and accurate data on aircraft registered on behalf of non-U.S. citizens makes it difficult for FAA to ensure aviation safety.