Iranian banks cut off from global financial system

A global financial payments system announced Thursday it was cutting off Iranian banks facing sanctions from the United States and European Union, as the global community ramped up its pressure on that nation's nuclear development program.

The Belgium-based Society for Worldwide Interbank Financial Telecommunication (SWIFT) announced it was no longer doing business with Iranian banks after an EU decision to prohibit the practice, including the nation's central bank. SWIFT handles cross-border transactions for most of the world's largest banks.

"This EU decision forces SWIFT to take action” said Lázaro Campos, the head of SWIFT. “Disconnecting banks is an extraordinary and unprecedented step for SWIFT. It is a direct result of international and multilateral action to intensify financial sanctions against Iran.”

The EU Council had decided to tighten restrictions on dealings with Iranian financial institutions over concerns about its nuclear program.

The U.S. Treasury Department hailed the move by SWIFT as the latest in a series of steps to discourage Iran from pursuing the project.

"Today’s decision reflects the growing international consensus that substantially increased pressure is needed to convince the Iranian regime to address the international community’s concerns about its illicit nuclear activities," said David Cohen, the Treasury's under secretary for terrorism and financial intelligence. "The United States will continue to work closely with our European and other partners in the international community to increase further the pressure on Iran and to strengthen the impact of our sanctions."

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