TITLE: U.S. Office of Foreign Assets Control Removes Iraqi Airline From Sanctions List
BODY:
On August 5, 2026, the U.S. Office of Foreign Assets Control (OFAC) removed Fly Baghdad Airlines Company and its related entities from the Specially Designated Nationals (SDN) List. The removal included the airline's alternate names—Fly Baghdad and Iraq Express—as well as two Boeing 737 aircraft (tail numbers YI-BAF and YI-BAN) previously operated by the company.
Fly Baghdad Airlines Company, established in 2014, had been designated under Executive Order 13224, as amended by Executive Order 13886, due to secondary sanctions risk and alleged links to the Islamic Revolutionary Guard Corps (IRGC)-Qods Force. The airline operated passenger air transport services from locations in Baghdad, Iraq, including facilities in Hurriya Square and Jadriya.
Concurrent with the removal of the airline, OFAC updated the SDN List entry for Basheer Abdulkadhim Alwan Al-Shabbani, an individual previously linked to Fly Baghdad Airlines Company. Al-Shabbani's designation was modified to reflect a new link to the Islamic Revolutionary Guard Corps (IRGC)-Qods Force rather than to the airline. Al-Shabbani, born May 1, 1986, holds Iraqi nationality and possesses Iraqi passport A14930891 (expiring January 27, 2027) and national identification number AA2889593 (expiring October 21, 2026).
The delisting of Fly Baghdad Airlines Company and its aircraft represents a significant shift in U.S. sanctions policy toward Iraqi aviation entities previously connected to Iranian military interests. The modification of Al-Shabbani's designation indicates OFAC's reassessment of individual links within the sanctions network. These changes affect parties engaged in aviation operations, financial transactions, and trade with Iraqi entities previously subject to secondary sanctions restrictions.