In an unprecedented move, Swift, a major world-wide communication network, has announced to pull out from Iran’s financial sector on Thursday. Around 30 financial institutions in Iran are going to be affected by the move which is going to take effect on Saturday. Once effective, it could severely hamper Iran’s ability to do international business electronically and isolate it from the global financial world.
The Society for Worldwide Interbank Financial Systems, in short, Swift has acknowledged that they are following the orders of the European Union (EU). Withdrawing communication services is a part of economic sanctions against Iran that European Union want to impose through Swift.
The Society for Worldwide Interbank Financial Systems is a Belgium-based consortium, governed by the European Union (EU) law. Iran regularly uses Swift to repatriate its huge proceeds from oil as well as other petroleum-based products.
As of now there is no reaction from Iranian authority. But they have been highly critical of western powers, mainly the United States and Europe, which they see as bullies, for imposing economic sanctions against oil-rich Iran. On the other hand, Europe and the United States are using the sanctions to pressurize Iran to stop its uranium-enrichment program. Enriched Uranium is useful for building nuclear weapons as well as for treatment in cancer therapy.
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