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Swift disconnects some Iranian banks

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Swift said the move is in the interest of keeping the global financial system stable after senior US officials said that it could be penalised if it authorises payments between sanctioned entities.

Sunday 11, November 2018 BY KUDAKWASHE MUZORIWA

The Chief Executive of SWIFT announced that the Belgium-based firm has disconnected some Iranian lenders from its financial messaging service.

Gottfried Leibbrandt, the Chief Executive of SWIFT, said that the firm is going to disconnect a certain number of Iranian banks, adding that it’s regrettable that SWIFT was not being allowed to be neutral.

SWIFT made no mention at the time of US sanctions as the reason for the decision, which likely reflects the fact that it is caught between conflicting regulatory demands.

Leibbrandt added that the list of banks will be published this week after the concerned banks were notified, declining to confirm whether Iran’s central bank was on the list or not.

The US government told SWIFT that it is expected to comply with sanctions and it could face them itself if it fails to do so. On the other hand, SWIFT is barred from doing so under the EU’s blocking statute, which could subject it to European penalties for complying with US law, reported Reuters.

TAGS : SWIFT, Iran, US Sanctions

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