Iran to be banned from SWIFT?
The European Union may ban certain Iranian entities from using the Belgian-based SWIFT bank transfer system, a move that would make it extremely difficult for those entities to pay and be paid for goods and services. The system, known as the Society for Worldwide Interbank Financial Telecommunication, or Swift, oversees the network used by most of the world's largest banks to conduct financial wire transfers. American lawmakers have charged in recent weeks that Iranian companies and banks blacklisted by the U.S. and EU have been using Swift to evade international sanctions.What took so long? Two years ago, this sanction might have had a chance of stopping Iran.
Both houses of the U.S. Congress have drafted legislation threatening to penalize Swift's board of directors and owners if they didn't ban the suspect Iranian entities from using its network.
A formal ruling by EU financial regulators on Swift is expected by late February or early March, according to European and U.S. officials. Swift's board is expected to comply, according to these officials.
"Yes, [it's a] done deal," said a European official. "[It] should be explicitly confirmed by the end of February, early March."
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According to Swift's public records, many of Iran's largest banks, which have been sanctioned by the U.S. and EU, have continued to use the Swift system in recent months. These include: Banks Sepah, Saderat, and Mellat.
Congressional officials said they're not certain if the new EU regulations will also ban Iran's central bank from using Swift. Banning Bank Markazi would almost completely freeze Iran out of the global banking system, they said.
Labels: Bank Mellat, Iran sanctions regime, Iranian central bank, Iranian nuclear threat
posted by Carl in Jerusalem @ 6:58 PM
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