• SWIFT says suspension of some Iranian Banks necessary but 'regrettable'

The Belgium-based SWIFT financial messaging service said it is suspending some unspecified Iranian banks’ access to its world-wide messaging system in order to preserve the stability and integrity of the global financial system.

Iran Press/Europe: The Belgium-based SWIFT financial messaging service said on Monday it is suspending some unspecified Iranian banks’ access to its messaging system in the interest of stability and integrity of the global financial system.

In a brief statement on Monday, SWIFT made no mention of US sanctions coming back into effect on some Iranian financial institutions. It said suspending the Iranian banks access to the messaging system was a “regrettable” step but was “taken in the interest of the stability and integrity of the wider global financial system,” Reuters reported.

SWIFT’s decision not to mention the US sanctions likely reflects the fact that it is caught between two contrary regulatory demands.

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

 

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Nov 06, 2018 10:16 Asia/Tehran
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