SWIFT – SANCTIONS – RUSSIAN BANKS
As part of the sanctions against Russia, the European Union, US, UK and allies have agreed to exclude a number of Russian banks from SWIFT.
The aim of banning Russian banks from SWIFT is to lose access to the smooth transactions.
Removal from SWIFT will be a problem because almost all banks use the system. In new situation banks have to deal directly with one another, adding delays and extra costs.
SWIFT is the global financial system that allows the smooth and rapid transfer of money across borders. It stands for Society for Worldwide Interbank Financial Telecommunication. SWIFT was created in 1973 and based in Belgium. It facilitates transactions between more than 11,000 banks and financial institutions across the globe.