US removes counter-terrorism designation from IRGC-linked company

The US Treasury Department delisted Fly Baghdad Airlines Co. (FBA), Iraq Express, and two Boeing 737 aircraft from its Office of Foreign Assets Control (OFAC) list of Specially Designated Nationals (SDN) on Wednesday. This removal, which also lifts sanctions on two aircraft, is part of OFAC's process to reconsider sanctions following behavioral changes. However, CEO Basheer Abdulkadhim Alwan Al-Shabbani remains sanctioned due to alleged ongoing ties to the IRGC. A Treasury official clarified that this action does not signal a shift in US policy towards Iran or the IRGC, emphasizing that sanctions could be reimposed. Fly Baghdad had been sanctioned since January 2024 for allegedly transporting weapons, including ballistic missiles, and personnel for the IRGC. The airline remains banned from the EU.