Wouldn't Iago be considered an escaped convict again?

After he was caught with Cassim in the treasure room trying to steal the Oracle and the Sultan orders the guards to sentence them in the dungeon for life. Then well Aladdin frees them, they go their separate ways but Aladdin goes back to the palace, taking responsibility for his action.

Technically wouldn't Iago again have a similar fate (as in the second movie when the Sultan discovers him) with the Sultan and the guards if he returns to the palace to visit Al and Jasmine?

Yet, when Iago returns briefly to inform Al and others about Cassim being kidnappened, no one is worried about how Sultan and guards are going to react nor even tried hiding him (like Al did in the second movie). It's like his sentence has been forgotten.

Is it assumed that he was excused and the Sultan afterwards focused on just Cassim? According to the story, it does say that though Iago goes with Cassim (still wanted for his crimes) as his traveling partner, he also sometimes visits the couple.