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