SWIFT stops servicing Iran

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) has stopped servicing Iranian banks, in accordance with sanctions of the European Union, RIA Novosti reports.

Iran will be fully cut off from the system this Saturday, Gazeta.ru reports.

The US, Canada, UK and other EU states banned all operations for Iranian banks, including operations with the Central Bank.

The SWIFT system is used for most international payments, including about 18 financial operations between banks and other financial institutes all over the world daily. Cutting Iran from the system means total financial isolation for Tehran and another blow to its petroleum industry.

Experts say it would have grave repercussion for Iranians living abroad, because they would not be able to transfer money back home.

Iran is currently affected by four resolutions of the UN Security Council as a result of Tehran’s refusal to clarify its nuclear program and prove its peaceful nature. Foreign ministers of 27 EU states met in Brussels on January 23 and approved the embargo on Iranian oil exports. The new package of sanctions includes a gradual ban on imports of petroleum from Iran. The embargo will come into full force on July 1.