Who’s the boss? SWIFT defies EU, caving in to US pressure to cut off Iranian banks
TEHRAN(Basirat): The international financial messaging system SWIFT has announced the suspension of several Iranian banks from its service. The move comes as the United States re-imposes nuclear sanctions on Tehran.
"In keeping with our mission of supporting the resilience and integrity of the
global financial system as a global and neutral service provider, SWIFT is
suspending certain Iranian banks’ access to the messaging system,” SWIFT said.
The Belgium-based financial messaging service added: "This step, while
regrettable, has been taken in the interest of the stability and integrity of
the wider global financial system.”
SWIFT’s decision further undermines EU efforts to maintain trade with Iran and
save an international deal with Tehran to curtail its nuclear program, after
President Donald Trump pulled the US out in May. Being cut off from SWIFT makes
it difficult for Iran to get paid for exports and to pay for imports.
Last week, US Treasury Secretary Steven Mnuchin warned SWIFT it could be
penalized if it doesn’t cut off financial services to entities and individuals
doing business with Iran. However, by complying with Washington, SWIFT now faces
the threat of punitive action from Brussels.
Washington has been pressuring SWIFT to cut off Iran from the financial system
as it did in 2012 before the nuclear deal. Six years, ago the EU imposed
sanctions on Iranian banks, forcing SWIFT, which is subject to EU laws, to cut
financial transactions with at least 30 of Iran’s financial institutions,
including the central bank.
Iranian banks were reconnected to the network in 2016 after the Iran nuclear
deal came into force, allowing much needed foreign cash to flow into Tehran’s
coffers.
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is a
financial network that provides high-value cross-border transfers for members
across the world. It is based in Belgium, but its board includes executives from
US banks with US federal law allowing the administration to act against banks
and regulators across the globe. It supports most interbank messages, connecting
over 11,000 financial institutions in more than 200 countries and territories.
Source:RT
