The latest development against Iranian financial institutions by SWIFT is in accordance wit action to comply with European Union sanctions on Iranian banks, which were enacted in response to Iran’s disputed nuclear energy program.
The sanctions will hamper Iranian banks’ ability to move billions of dollars in financial transactions making it difficult to obtain letters of credit or conduct international transfers of funds through banks, while isolating Iran from the world economy.
SWIFT chief executive Lazaro Campos said that 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 US and the EU are all set to impose more restrictions to impose pressure on Iran to suspend its uranium enrichment activities, out of suspicion that it is trying to build its capabilities to make nuclear weapons.
SWIFT, a member-owned cooperative provides the communications platform, products and services to connect more than 10,000 financial institutions and corporations in 210 countries across the globe.
