Fly Baghdad: OFAC terrorism-finance sanctions (2024) and 2026 delisting of the airline
On 22 January 2024 the US Treasury designated the Iraqi private airline Fly Baghdad (also doing business as Iraq Express) and its CEO Basheer Abdulkadhim Alwan al-Shabbani under Executive Order 13224, alleging the airline had for several years supported the IRGC-Quds Force and its regional proxies, including Kata'ib Hizballah, by flying weapons shipments and ferrying personnel and funds through the region, including fighters from designated terrorist organisations after 7 October 2023. Two Fly Baghdad-owned Boeing 737 aircraft were blocked as property. On 5 August 2026 OFAC removed the Fly Baghdad corporate entities and the two aircraft from the SDN list, citing a compliance transformation over the intervening two years; independent reporting says al-Shabbani's individual designation was not lifted, while a Fly Baghdad company statement the same week said no SDN-listed person holds or has ever held an ownership stake in the airline, naming a different person, Ahmad Asad, as its founder and chairman, a discrepancy unresolved.
- Period
- From January 2024 to August 2026
- Sector
- Transport and aviationPrivate airline sanctions
- Kind of case
- Sanctions designation
- Jurisdiction
- Federal Iraq
How the money moved, according to the sources
Alleged use of a nominally civilian, commercial Iraqi airline as cover to move weapons, militia personnel and funds on behalf of Iran's Quds Force network and Iraqi Iran-aligned militias.
What happened
Airline entity and its two aircraft delisted 5 August 2026; the CEO's individual sanctions status and the airline's true current ownership are disputed.
Open questions
- Whether al-Shabbani's individual SDN listing has been lifted; who actually owns or controls Fly Baghdad today.
People and companies
| Name | Role in the case | Legal status | Detail | As of |
|---|---|---|---|---|
| Basheer Abdulkadhim Alwan al-Shabbani | CEO and owner of Fly Baghdad at time of designation | Under sanctions | Individually designated by OFAC 22 January 2024 alongside the airline. Independent reporting states his personal designation was not lifted in the August 2026 delisting of the corporate entities; a Fly Baghdad company statement the same month disputed he has any ownership role, naming 'Ahmad Asad' as founder and chairman instead, a discrepancy not resolved. | 28 September 2026 |
| Fly Baghdad Airlines Company (aka Iraq Express) فلاي بغداد | Iraqi private airline, established 2014 | Charges dropped or case closed | Designated by OFAC 22 January 2024 under Executive Order 13224 as amended, for supporting IRGC-Quds Force logistics; the corporate entity and its two Boeing 737s were removed from the SDN list 5 August 2026, which Fly Baghdad's own statement called the result of a 'two-year compliance transformation'. | 28 September 2026 |
Sources
- US Department of the Treasury22 January 2024Sanctions noticeTier A
Treasury Targets Kata'ib Hizballah Leaders and Airline Enabling IRGC-QF and Militant Proxy Groups (press release jy2037)
Our copy (downloads as a file)OriginalSHA-256 904d98c6dd9fFor several years, Iraqi airline Fly Baghdad has supported the operations of the IRGC-QF and its proxies by delivering materiel and personnel throughout the region
- OFAC5 August 2026Sanctions noticeTier A
Recent Actions, 5 August 2026 (SDN List removals)
Our copy (downloads as a file)OriginalSHA-256 7c7ccae70ed9FLY BAGHDAD AIRLINES COMPANY; IRAQ EXPRESS; FLY BAGHDAD [entities and aircraft YI-BAF, YI-BAN removed from the SDN list]
- The National22 January 2024Press reportTier D
US sanctions Fly Baghdad and Kataib Hezbollah over support for IRGC's Quds Force
OriginalIran and its proxies have sought to abuse regional economies and use seemingly legitimate businesses as cover for funding and facilitating their attacks