Iran sets up an alternative for SWIFT for money transactions

Posted on May 29, 2012


Since Iran’s Central Bank has been banned from using Worldwide Interbank Financial Telecommunication (SWIFT), the Islamic Republic announced they now have an alternative system implemented, according to Governor of the Central Bank of Iran (CBI) Mahmoud Bahmani.

He said the new system has already been activated and that it tends to substitute SWIFT. Whether it will succeed or not, time will show.

On March 15, SWIFT CEO Lazaro Campos said in a statement that it has been decided to discontinue offering services to Iranian banks which are subject to financial sanctions imposed by the European Union.

On January 23, the EU foreign ministers approved new sanctions on Iran’s financial and oil sectors, which prevent member countries from importing Iranian crude or dealing with its central bank.

Experts believe that SWIFT’s new action is meant to fully enforce EU sanctions, as global financial transactions are impossible without using SWIFT.

Posted in: iran economy