Iranian Banks Cut Off from World Payment System


iranIran was largely cut off from global commerce Thursday after the company that handles worldwide financial transactions said it was severing ties with many Iranian banks to back EU sanctions against Tehran.

The action by the Society for Worldwide Interbank Financial Telecommunication, or SWIFT, aims to enforce European Union sanctions discouraging Tehran from developing nuclear weapons.

It will go a long way toward isolating Iran financially. The company is a banking hub crucial to oil, financial transactions and other trades and global financial transactions are impossible to conduct without using it.
Because of the company’s reach, its decision to cut off some 30 Iranian banks and subsidiaries could hinder not only Iran’s banking but also its lucrative crude oil industry. It could also possibly hurt Iranian households that depend on remittances from relatives living abroad.

“Disconnecting banks is an extraordinary and unprecedented step for SWIFT,” said Lazaro Campos, chief executive of the company. “It is a direct result of international and multilateral action to intensify financial sanctions against Iran.”

In a statement, the company said the EU decision to impose sanctions “prohibits companies such as SWIFT to continue to provide specialized financial messaging services to EU-sanctioned banks” and “forces SWIFT to take action.”

There was no immediate reaction from the Iranian government or the banks involved. Not all Iranian banks are subject to EU sanctions.

Although the move added no new sanctions, it aimed to maximize the impact of the EU sanctions already approved.

“It’s tightening the noose,” said Ali Ansari, an expert on the Middle East at the London-based Chatham House think tank. “It will just reinforce what’s already been happening.”

And that, he said, is increasing Iran’s isolation and difficulty in conducting trade and commerce.

In a statement, the European Council – which is made up of the government leaders of the 27 European Union countries – said it had “developed the application” of its restrictive measures against Iran.

In addition to sanctioning Iranian officials and freezing the assets of certain companies, the European Union plans to institute an embargo on the import of Iranian oil in July – an attempt to choke off funding for Iran’s nuclear program.

The EU sanctions are aimed at forcing Iran to demonstrate to the international community that it is not trying to develop nuclear weapons. Iran says that its nuclear program is for peaceful purposes only, but officials in many other countries – including the United States and Israel – believe otherwise.

Washington and allies Britain, France, and Germany have sought a tough approach toward Iran over the nuclear issue but have run into resistance from Russia and China.

Russia, China, and the four Western nations have agreed to meet with Iran in another effort to seek a negotiated solution, but East-West disagreements within the group are greater than ever.

A previous series of talks between the six and Iran ended in failure, the last one more than a year ago in Istanbul, Turkey.

{Boston Globe/ Newscenter}


  1. Who’s the guy in the Bedouin headdress? He’s pretty obviously an Arab. Iran is inhabited by Persians (Check your Tanakh). Iranians are a different group altogether and they’ll tell you so very clearly. Their language isn’t even Semitic, and their brand of Islam is so different that they occasionally go to war with other Islamic groups. (Remember the Iraqi/Iranian war a few years ago?)

    Does this mean that the guy who chooses the pictures for Matzav doesn’t know the difference between Persian and Arab? I hope he isn’t also the one doing international political commentary, but I do bet that he’s the one who writes some of the more “interesting” of your headlines.

  2. When will the world (Obama) learn that Iran will not stop no matter what? Everyone says he is a smart man so why doesn’t he understand?

    I would postulate that he really DOES understand, and prefers a nuclear Iran since he has said numerous times that the United States should not be making rules for the world. We know he is an arab/muslim sympathizer, taking the part of Muslim Brotherhood against US ally Mubarak, promoting Palestinian point of view and bowing to Saudi Arabian leaders. He has said that the sweetest sound he ever heard was the call to prayer by the mosques.

    Why are we closing our eyes to the obvious? He is promoting the anti-US agenda but needs to do it stealthily. Is it because he says otherwise? We already know he is a liar. He has claimed to be Israels’s best friend though we see his actions and statements. He claims to have pumped the most oil despit the oil experts saying that he has been obstrucing every possible solution to our oil problems. When someone complained about high oil prices he told them not to drive an SUV. He lies constantly and consistenly. Why are we listening to his claims on Iran when we see him keeping Israel from protecting themselves.

    I firmly believe his interests are not even close to the vast majority of Americans, but he has a smooth tongue.


  3. to chaimz
    you asked Why are we closing our eyes to the obvious?

    we have a major problem in today’s society (yidden or not) . & its called FACING REALITY.
    whenever tragedy strikes or there’s a big issue, the person blocks it from his face & convinces himself not to apply the message to him,so that we can just continue our fancy & happy lavish life.

    first WE ALL need to admit to ourselves that i have a issue/problem here, then we need to work on solving it. BUT %80 of solving it, is each person admitting to the problems he has.

    you ask When will the world (Obama) learn that Iran will not stop no matter what? Everyone says he is a smart man so why doesn’t he understand?

    Cause Obama is a muslim too & just as we have a commandment to destroy amalek, they have a mitzva to destroy jews.
    Before Mashiach comes the entire world is going to be against Israel & klal yisroel-including the medina shel chesed of the USA- THE ONLY question is when? how soon?

    BOTTOM LINE:its going to happen no matter what. MILCHEMES GOG-UMAGOG will occur before mashiach comes-as hashem told zecharia hanavi (the prophet) the only question is if he will come now or in 2 years or later etc… & THAT IS UP TO KLAL YISROEL depending on when we do teshuva & show Hashem that we are not just davening for mashiach but are YEARNING for mashiach. may mashiach be here b’karov

  4. here is my theory:

    Obama is either a seriously INEPT president,
    check out conspiracy theory.
    either way, too many people are falling for it.
    doesnt that sound like another time in history?