Treasury Removes Restrictions on Fly Baghdad After Compliance Review

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) has removed counterterrorism sanctions from Iraqi carrier Fly Baghdad and two aircraft that were previously blacklisted over alleged links to Iran’s Islamic Revolutionary Guard Corps, or IRGC.

The Treasury updated its Specially Designated Nationals (SDN) list to remove Fly Baghdad Airlines Company, Fly Baghdad, and Iraq Express following what officials described as demonstrated operational changes by the airline.

According to the Treasury Department, the delisting reflects the airline’s compliance with U.S. requirements, making the sanctions imposed in 2024 no longer necessary.

U.S. officials stressed that the decision is a routine sanctions action based on compliance and should not be interpreted as a broader policy shift toward Iran or the IRGC.

The move highlights the Treasury Department’s practice of reviewing sanctions designations and removing restrictions when individuals or entities no longer meet the criteria for listing.