Overview
- On Wednesday the Treasury's Office of Foreign Assets Control removed Fly Baghdad, its aliases Iraq Express and Fly Baghdad Airlines Company, and two Boeing 737s with tail numbers YI-BAF and YI-BAN from the SDN list.
- A Treasury official said the delisting followed OFAC's administrative reconsideration and that the airline had demonstrated major changes to its operations so the listing was no longer warranted.
- Sanctions on the man identified in the original designation, Basheer Abdulkadhim Alwan al-Shabbani, remain in force and his listing was retargeted to link him to the IRGC-Quds Force rather than to the carrier.
- Treasury emphasized the move was case specific and not a change in Washington's Iran policy, but the removal coincided with diplomatic contacts aimed at reopening the Strait of Hormuz and drew attention from markets and regional officials.
- The original January 2024 designation accused Fly Baghdad of moving fighters, weapons and funds for IRGC-aligned groups such as Kataib Hezbollah, and OFAC delisting notices normally give few evidentiary details so the change does not rule out future action if concerns recur.