US Sanctions Iraqi Airline Fly Baghdad and CEO for Alleged IRGC-QF Support

The US Office of Foreign Assets Control (OFAC) has imposed sanctions on the Iraqi airline Fly Baghdad and its CEO, Basheer Al-Shabbani, for allegedly aiding the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) and its proxy groups. These sanctions follow accusations that the airline has been involved in transporting materials and personnel for the IRGC-QF across the Middle East.

The US Treasury Department claims that Fly Baghdad has been instrumental in moving weapons and fighters to areas in Syria, Lebanon, and Iraq. Specifically, the airline is accused of transporting shipments to Damascus for groups aligned with the IRGC-QF, including the Syrian Arab Republican Guard, Lebanese Hizballah, Kata’ib Hizballah (KH), and the KH-affiliated Abu al-Fadl al-Abbas Brigade.

Fly Baghdad is alleged to have facilitated the movement of KH fighters for training in Lebanon and transported US currency and US-made weapons. The airline is also accused of participating in transporting Iraqi fighters following a Hamas attack on Israel to support Iran-affiliated militias.

The sanctions target two specific aircraft in Fly Baghdad’s fleet: a B737-700 (YI-BAN) and a B737-800 (YI-BAF). Fly Baghdad’s fleet also includes additional B737s and CRJ aircraft, with some being leased.

Following the imposition of sanctions, the Iraqi Central Bank reportedly froze Fly Baghdad’s accounts in domestic banks. OFAC has set a deadline of March 22, 2024, for lessors and other parties to conclude wind-down transactions with the airline under existing contracts. Additionally, OFAC has authorized transactions related to civil aviation safety for an extra two months.

In response to these allegations, Fly Baghdad has denied any wrongdoing and stated that its operations have been under the supervision of the Iraqi government and international aviation authorities. The airline has demanded the US provide evidence of its alleged misconduct and is considering legal action for compensation.

This sanction on Fly Baghdad is part of a broader pattern where OFAC has targeted several airlines in the Middle East for their purported connections with Iran and its proxy groups.