U.S. Treasury Removes Iraqi Airline from Sanctions List
The U.S. Treasury Department has taken the step of removing Fly Baghdad Airlines Co. (FBA), along with two Boeing 737 aircraft it operates, from the sanctions list on Wednesday. This decision came after an evaluation by the Treasury's Office of Foreign Assets Control (OFAC), which examines behavior changes to determine if entities should remain under sanctions.
Fly Baghdad and its CEO, Basheer Abdulkadhim Alwan Al-Shabbani, were added to the OFAC sanctions list in 2024. The U.S. government at that time accused the airline of providing logistical support to the IRGC by shipping weapons and personnel. According to official documents, this included ballistic missiles, rifles, and other war materials. The airline also operated under the name Iraq Express.
A Treasury Department spokesperson emphasized that the move to remove Fly Baghdad does not mean a shift in the U.S. stance on Iran or the IRGC, nor is it connected to current diplomatic efforts to ease tensions in the Middle East. The official added that the U.S. government may still choose to reapply sanctions if the airline's actions change again.
The Specially Designated Nationals (SDN) list, maintained by OFAC, is used to identify individuals and companies that are either owned by or acting for hostile groups or countries. Those on the list face blocked assets and are banned from engaging with U.S. entities. While Fly Baghdad and its assets were removed from the SDN, its CEO remains on the list due to ongoing concerns about his connections to the IRGC. The removal process allows for petitions from sanctioned parties, but does not guarantee permanent exemption.
The U.S. government continues to enforce stringent sanctions on entities and individuals linked to the IRGC. OFAC has recently added IRGC-related groups to the SDN list as late as July, showing no signs of relaxing its policies. The Treasury Department's move appears to be part of a broader review process rather than an ideological shift, as outlined in a statement from the office.