Closing SWIFT to Iran is Like Closing the Strait - Fallahian

In one of the first reactions to Iran’s expulsion form SWIFT, Iran’s former intelligence minister Ali Fallahian said on Saturday that closing SWIFT to Iran is like “closing international waterways” to a country and as such is illegal. Fallahian said Iran would use every possible means to respond in kind, including the closing of the Strait of Hormuz in reaction to the mounting pressures by the West.

“If the United States or Europe considers it its right to ignore international laws to meet its own interests, Iran may also decide to respond in kind wherever possible,” Fallahian said. [Fars News Agency, 18 March].

SWIFT Cuts Ties with Iran

The SWIFT global financial transaction service today cut its ties with Iranian banks that are subject to EU sanctions. The action makes it impossible for the Iranian banks to engage in international transactions and would isolate Iran financially.

"Disconnecting banks is an extraordinary and unprecedented step for SWIFT," Lazaro Campos, chief executive of SWIFT, said. "It is a direct result of international and multilateral action to intensify financial sanctions against Iran."

Source: AP, 15 March 2012

UPDATE: the Brussels-based SWIFT announced the cut off date would be Saturday 17 March. SWIFT, described as the ‘glue’ of the global banking system, handles payments among banks worldwide at more than $6 trillion each day. Iran’s exclusion from the system will severely limit the country’s ability to conduct international banking transactions.