Iraqi airline Fly Baghdad has been removed from the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) Specially Designated Nationals and Blocked Persons (SDN) List after completing a two-year company-wide compliance and governance overhaul.
The delisting was published by OFAC on August 5, 2026, and took effect immediately. The move ends US blocking sanctions against the airline, allowing individuals and businesses in the United States and elsewhere to conduct transactions with Fly Baghdad in the ordinary course of business. Restrictions on aircraft previously classified as blocked property have also been lifted.
Fly Baghdad said the decision follows sustained efforts to improve its governance, compliance controls, transparency and corporate practices in line with international standards.
“This is the result of two years of disciplined work by our people to rebuild trust in how we operate,” said Alaulddin Abdulrahman, Chief Executive Officer of Fly Baghdad. He said the airline had focused on strengthening governance, controls and transparency rather than simply seeking recognition.
With the sanctions lifted, Fly Baghdad said it is ready to resume normal commercial dealings with banks, payment providers, insurers and reinsurers, aircraft lessors, maintenance companies, fuel suppliers, distribution systems, travel agencies and other aviation partners.
The airline said it intends to rebuild and expand long-term relationships with financial institutions and aviation companies globally. It added that counterparties can independently confirm its removal from the SDN List through OFAC records and related US government announcements.
Fly Baghdad also clarified its ownership and management structure. The airline said it is owned by Founder and Chairman Ahmad Asad and that no individual who is currently or was previously designated on the SDN List has held an ownership interest in the company.
The carrier further said former Chief Executive Officer Basheer Al-Shabbani never held equity in Fly Baghdad and has no role in its ownership, management, governance or operations. OFAC’s August 5 action amended Al-Shabbani’s SDN entry to remove references linking him to Fly Baghdad.
“When we began this work two years ago, we made one commitment: Fly Baghdad would meet the highest standards of compliance and governance, or it would not fly,” said Ahmad Asad, Chairman of Fly Baghdad. He added that the commitment is now incorporated into the company’s governance, staffing and operations.
Asad also acknowledged the legal teams that supported the airline throughout the process, including Eric H. Blinderman and Raid Juhi AlSaedi of the Law Offices of Eric H. Blinderman, as well as Reid Whitten and Scott Maberry of Sheppard Mullin.
Fly Baghdad said tickets remain available through its website, sales offices, call centre and authorised travel agents, while all existing bookings will be honoured.
The airline is now working with aviation authorities, airports and industry partners to restore and expand its network through a phased approach. Details of updated schedules, destinations and booking arrangements will be released through its official communication channels.
“Our priority now is simple: reconnect people, support commerce, and deliver safe, reliable, and affordable air travel to every community we serve,” Abdulrahman said.
He also praised Fly Baghdad’s pilots, cabin crew, engineers, technicians and ground staff for maintaining professionalism and resilience throughout the compliance transformation.
“Our focus now shifts from transformation to growth,” Abdulrahman said, adding that the airline is ready to reconnect with passengers, commercial partners and the wider global aviation community.
Source: ZAWYA