SWIFT has been instructed by the Belgian authorities to discontinue its communications services to Iranian financial institutions that are subject to European sanctions. The move follows a new European Council decision, confirmed by the Belgian Treasury, prohibiting companies such as SWIFT to continue to provide specialized financial messaging services to EU-sanctioned Iranian banks. SWIFT is incorporated under Belgian law.
This EU decision forces SWIFT to take action said Lzaro Campos, CEO of SWIFT. Disconnecting banks is an extraordinary and unprecedented step for SWIFT. It is a direct result of international and multilateral action to intensify financial sanctions against Iran.
The disconnection will become effective tomorrow, March 17 at 16.00 GMT.
In a press statement, SWIFT said it has been and remains in full compliance with all applicable sanctions regulations of the multiple jurisdictions in which it operates, and has received confirmation of this from the competent regulatory authorities.
Cutting off Iranian banks from the SWIFT network would make it harder for the country to raise funds to finance its nuclear program.
At the SWIFT Operations Forum – Americas in New York at the beginning of March Campos defended his organization against some media claims that it is in violation of sanctions already in place, saying at the Forum that SWIFT is clear about what it needs to dofor now it is merely waiting for a list of Iranian institutions it needs to disconnect from the system. This is going to happen very quickly, Campos said.
(JDC)