Recently in July 2017, a bill was introduced by Rep. Stephen Lynch, D-Mass, if it is passed it will affect owners who wish to buy a jet. The Aircraft Ownership Transparency Act of 2017, H.R.3544, seeks beneficiary verification besides the owner’s identification before it is registered to the FAA. It is anticipated that this act will make FAA airplane registration clearer.
Behind the Scenes
FAA personnel are asked to record ownership and lien information on every aircraft that is registered. However, following the process, an owner can easily hide identities as there are agents or FAA aircraft owner trusts that can register an aircraft on their behalf. The agents make it easier for foreign individuals to register an aircraft under the FAA. It becomes difficult to detect and verify identities as there is no actual information available on owners, users or beneficiaries. Often it also has been seen that agents do not pass information on to the FAA. The supporters of this act believe this loophole is a threat to the safety and security of the country.
The Bill – What Does It Do?
If the bill passes, it will seek ‘the disclosure of beneficial ownership by a foreign person of aircraft registration’. This will be also required before the FAA airplane registration. According to the bill, if the owner of the aircraft is hidden, the user, the beneficiary and trustee and relationship between all should be revealed. This bill of 2017 defines beneficiary as, “each natural person, who directly or indirectly, exercises control over the covered entity through ownership interests, voting rights, agreements, or otherwise; or has an interest in or receives substantial economic benefits from the assets of the covered entity.”
If the bill passes, FAA aircraft owner trust, beneficiary and users can expect stricter policies. For the more queries regarding this, come to Aviation Trust Company to get them all answered.