Shafaq News/ Iraqi carrier Fly Baghdad on Thursday said it had suspended all flights, following a decision by the Iraqi government in compliance with U.S. sanctions imposed on the company and its CEO.

The company said it is complying with the government's decision to suspend flights until the completion of an investigation into the allegations against it.

Fly Baghdad said it could not refund tickets for canceled flights or book passengers on other airlines because it could not access its bank accounts.

The company said it welcomed the government's decision and was open to any inspection by a U.S.-led committee to investigate the allegations.

The U.S. Treasury Department imposed sanctions on Fly Baghdad and its CEO on Monday, accusing them of providing assistance to the Quds Force, the foreign operations arm of Iran's Islamic Revolutionary Guard Corps.