World interbank system 'ready' to exclude Iran banks

SWIFT, the global interbank transfer network, said Friday it was ready to exclude Iranian banks from its system once the EU has enacted new sanctions to that effect against Tehran. "SWIFT stands ready to act and discontinue its services to sanctioned Iranian financial institutions as soon as it has clarity on EU legislation currently being drafted," the Belgium-based organisation said in a statement.
"This decision follows extensive consultation with our board and with relevant regulatory authorities," it said. "The decision also reflects the extraordinary and highly exceptional circumstances of significant multi-lateral international support for the intensification of sanctions against Iran."
The United States has urged the European Union to block Iranian banks' access to SWIFT, a co-operative of more than 9,000 financial institutions that serves as the main conduit for interbank transactions around the world. The EU is drafting new sanctions that would directly affect the ability of EU-based financial communication service providers such as SWIFT to do business with blacklisted Iranian banks, the organisation said. SWIFT said it has informed its overseers - world-wide central banks including the US Federal Reserve, Bank of Japan and European Central Bank.