US,EU and UK decided to eliminate selected Russian banks from SWIFT

Highlights:

  • Canada, U.S.A. and their European allies have come to a conclusion to remove the key Russian banks from the Interbank messaging system (IMS) of SWIFT.
  • This is a very big step that will cut off the country from much of the worldwide financial system.
  • The major global powers issued a joint statement announcing this significant retaliatory measure.
  • Russia’s removal from SWIFT (Society for Worldwide Interbank Financial Telecommunication) will mean that the Russian banks will not be able to communicate securely with foreign banks.
  • Previously, Iran has been removed from SWIFT in 2014 following developments to its nuclear program in Tehran.
  • The announcement will follow several rounds of joint sanctions that will be imposed on Russia for its unprovoked attack on Ukraine.
  • SWIFT stands for Society for Worldwide Interbank Financial Telecommunications and is an independent enterprise, which is based in Belgium.
  • SWIFT serves as an internal communication mechanism between around 11,000 banks and financial institutions for more than 200 countries and territories.