US Threatens SWIFT With Sanctions If Iran Isn't Cut Off

[Hydrogen]

Treasury Secretary Steven Mnuchin threatened the global financial messaging service SWIFT on Friday that it could be penalized if it doesn’t cut off financial services to entities and individuals doing business with Iran. The warning came just days ahead of the US re-imposition of all US sanctions on Iran that had been lifted under the 2015 nuclear deal, which will take effect at midnight tonight and cover Iran's shipping, financial and energy sectors.

Speaking to reporters, Mnuchin was quoted by Reuters as saying that "SWIFT is no different than any other entity," adding "We have advised SWIFT that it must disconnect any Iranian financial institutions that we designate as soon as technologically feasible to avoid sanctions exposure."

The Trump administration has been pressuring allies to cut Iranian oil imports to “zero” next month although on Friday the US agreed to grant exemptions to 8 countries that import Iran oil; the countries include Japan, India, and South Korea according to Bloomberg. China, the leading importers of Iranian oil remains in discussions with the US on terms but is among the eight, as is Turkey which will likely receive an exemption, the country's energy minister said on Friday. The full list of countries receiving waivers will be released on Monday.

By cutting Iran off from SWIFT, Iran would lose its ability to be paid for its exports and to pay for imports. Washington has been pressuring SWIFT to cut Iran from the financial system as it did in 2012 before the nuclear deal. Six years ago the EU imposed sanctions on Iranian banks, forcing SWIFT, which is subject to EU laws, to cut financial transactions with at least 30 of Iran’s financial institutions, including the central bank.

Iranian banks were reconnected to the network in 2016 after the Iran nuclear deal came into force, allowing much needed foreign cash to flow into Tehran’s coffers.

While SWIFT (The Society for Worldwide Interbank Financial Telecommunication), which is a financial network that provides cross-border transfers for members across the world, is based in Belgium, its board includes executives from US banks with US federal law allowing the administration to act against banks and regulators across the globe. It supports most interbank messages, connecting over 11,000 financial institutions in more than 200 countries and territories.

Washington’s pressure has pushed Brussels to look at creating a SWIFT alternative. As we reported at the time, in August German Foreign Minister Heiko Maas called on the EU to set up an independent equivalent of the system. Later, EU Foreign Affairs Chief Federica Mogherini confirmed that the bloc’s signatories remain committed to the nuclear deal with Iran and are working to create special payment channels to do business with the Islamic Republic. That proposal stalled in Brussels and major European firms left Iran.

* * *

Whether with or without SWIFT's involvement, Iranians are bracing for the full force of US sanctions due to hit on Monday. The new sanctions, which also aim to cut off Iran’s banking sector from the global market, are timed to coincide with the anniversary of the 1979 storming by Iranian revolutionaries of the US embassy in Tehran, when angry students took 52 American diplomats hostage for 444 days.

Iran has remained defiant, saying it is confident it can weather the impacts, and that the US will fail to bring down Iranian oil imports to zero.

On Friday, President Trump announced the reimposition of sanctions by tweeting on Friday a photograph of himself in the style of an advertisement for the Game of Thrones series, with the tagline: “Sanctions Are Coming, November 5” (much to the chagrin of HBO).

The office of Iran’s Quds force commander, Qassem Soleimani, retaliated by posting a photo of himself in a similar style alongside the tagline: “I will stand against you.”

But ordinary people, wary of the fluctuations of the currency and the rising prices of goods, are anxious. On Sunday, a state-organised rally took place in front of the former US embassy compound in central Tehran to mark the anniversary. The crowd held placards reading “Down with USA”, and “Down with Israel”, while others set US and Israeli flags on fire.

“Never threaten the Iranian people,” Mohammad Ali Jafari, the commander of Iran’s elite revolutionary guards told people gathering in front of the former embassy, officially referred to as a “den of spies”. “Do not make military threats against us, and do not frighten us with military threats,” he added.

Iran is also relying on European support: as noted above, the EU has set up a mechanism – known as a special purpose vehicle (SPV) – to sidestep US sanctions and persuade an increasingly reluctant Iran to stay inside the deal in the hope of rescuing its economy. It is unclear if Europe will be willing to actually activate this "SWIFT-alternative", however, in light of Mnuchin's threats.

Iran’s supreme leader, Ayatollah Ali Khamenei, reacting to Trump’s threats on Saturday, said America’s power was in decline. “The US’s goal in imposing sanctions is to paralyze and prevent the growth of national economy; but it resulted in a movement towards self-sufficiency in Iran,” he said.

Inside Iran, however, people are on tenterhooks. Economic grievances were a trigger for a wave of nationwide protests in recent months over the scarcity of the US dollar, unpaid wages and rising prices. “Nov 5th isn’t the most pivotal moment in this saga,” said Ali Vaez, Iran project director at the International Crisis Group told the Guardian. “Paradoxically, if sanctions prove as effective as the White House is hoping for, they are bound to push Iran to either revive its nuclear program or become more aggressive in the region. Both will significantly increase the risks of a military confrontation.”

https://www.zerohedge.com/news/2018-11-04/us-threatens-swift-sanctions-if-iran-isnt-cut

....

Not certain this will amount to anything. There's a possibility we'll see a small surge in the value of bitcoin and crypto currencies if SWIFT is penalized. Sanctions imposed against SWIFT could create a vacuum crypto could grow in to meet needs and demands of consumers.

If Iran is cut off, it could mean we'll be reading news stories about large banks laundering money for Iran in the future as it would represent billions in under the table business. That would appear to be the trend we've witnessed with sanctions imposed against russia.

Mainly posting this is as it is the 1st time I can remember anyone threatening SWIFT. Could be a historic moment, here.

[amicrypto]

RANTING ON US AHEAD, DON'T PROCEED IF YOU ARE EASILY OFFENDED BY FACTS!

US onto its bullying game once again. The threats have reached a point where it is not making much of a difference to the world. They have challenged the world and dictated their terms for quite long. Forcing countries to stop buying crude, stopping trade with countries. Just because the dollar is the global currency, US has got off with a lot of blackmailing in the past.

Things are changing and countries are dumping US securities and dollars in exchange of Gold. The Bretton-Woods agreement on the money supply looks like it is in real danger zone. And the only country to blame is US. They have abused their power and position for long. Used SWIFT gateway to forbid trade and blackmail countries.

Cryptocurrencies and blockchain give a real potential to the world in terms of introducing a truly global currency that is not manipulated and controlled by a group. That can not be held ransom to on the whims and fancies of US.

The coming years are going to be very interesting. I am already loving the way other countries are challenging the status-quo of US. In a month, my country refused to follow sanction by US on Iran, Russia and signed big deals in regards to Oil import, Arms acquisition, port setup etc. US needs to understand that the present global order is multi-polar and the relations between any two countries are dictated by mutual benefit and not by US.

[avikz]

US is threatening everyone, even its allies! The mid term poll has already shown what common US people are thinking about him. Most certainly he isn't coming back in 2019 for good. He is the only responsible person behind the global trade war as well as the distrust it has created among long term allies.

If Swift stops processing Iran's transactional volume, people will obviously look for alternatives. Since Iran's Central Bank has already recognized cryptos and legalized mining operations, no wonder people will tend to use that option pushing the demand as well as the value higher!

But apart from crypto, no good will happen to the economy of the world. Our economy revolves around the fuels like oil and natural gas. If the supply doesn't remain constant after the ban on Iran, inflation will make its way to the economies of the dependent countries! It will do a big harm in long run and we have no idea how far it can reach!

[figmentofmyass]

Not certain this will amount to anything. There's a possibility we'll see a small surge in the value of bitcoin and crypto currencies if SWIFT is penalized. Sanctions imposed against SWIFT could create a vacuum crypto could grow in to meet needs and demands of consumers.

that's a longshot. there simply isn't enough liquidity in the crypto market to handle the kind of demand that vacuum requires. over a much longer period of time, i think you're right, but i can't see this event affecting cryptocurrencies directly today. it'll take a long time for crypto to take that kind of market share from bank wires.

If Iran is cut off, it could mean we'll be reading news stories about large banks laundering money for Iran in the future as it would represent billions in under the table business. That would appear to be the trend we've witnessed with sanctions imposed against russia.

that's what i was thinking. banks launder hundreds of billions of dollars for russian entities. why not iran?

i think this is notable:

Washington’s pressure has pushed Brussels to look at creating a SWIFT alternative. As we reported at the time, in August German Foreign Minister Heiko Maas called on the EU to set up an independent equivalent of the system. Later, EU Foreign Affairs Chief Federica Mogherini confirmed that the bloc’s signatories remain committed to the nuclear deal with Iran and are working to create special payment channels to do business with the Islamic Republic.

[hatshepsut93]

Not certain this will amount to anything. There's a possibility we'll see a small surge in the value of bitcoin and crypto currencies if SWIFT is penalized. Sanctions imposed against SWIFT could create a vacuum crypto could grow in to meet needs and demands of consumers.

If Iran is cut off, it could mean we'll be reading news stories about large banks laundering money for Iran in the future as it would represent billions in under the table business. That would appear to be the trend we've witnessed with sanctions imposed against russia.

Actually, I think these two things can be tied together. It's unlikely that Iran businesses will simply switch to Bitcoin, but Bitcoin or other cryptocurrencies might become a part of laundering schemes perpetrated by banks. But the effect on Bitcoin's price and adoption will remain small, because time has proven that reaction to economic events is always rather small, if any.

[pokeronlinestatus]

RANTING ON US AHEAD, DON'T PROCEED IF YOU ARE EASILY OFFENDED BY FACTS!

US onto its bullying game once again. The threats have reached a point where it is not making much of a difference to the world. They have challenged the world and dictated their terms for quite long. Forcing countries to stop buying crude, stopping trade with countries. Just because the dollar is the global currency, US has got off with a lot of blackmailing in the past.

Things are changing and countries are dumping US securities and dollars in exchange of Gold. The Bretton-Woods agreement on the money supply looks like it is in real danger zone. And the only country to blame is US. They have abused their power and position for long. Used SWIFT gateway to forbid trade and blackmail countries.

Cryptocurrencies and blockchain give a real potential to the world in terms of introducing a truly global currency that is not manipulated and controlled by a group. That can not be held ransom to on the whims and fancies of US.

The coming years are going to be very interesting. I am already loving the way other countries are challenging the status-quo of US. In a month, my country refused to follow sanction by US on Iran, Russia and signed big deals in regards to Oil import, Arms acquisition, port setup etc. US needs to understand that the present global order is multi-polar and the relations between any two countries are dictated by mutual benefit and not by US.

I think that US has been very much out of mind these days. Iran being a developed country and despite having great economy is still in negotiation with the US and this is good for the health of the world. However the more sanctions the US try to impose on the world, the more retaliation it faces in the form of the activities that the US does not want.

Furthermore, this has adverse consequences on the economy of US as well for it try to allocate the money that could be used for great work on warfare and many other activities that even the Americans do not like and are against.

[gelinshidong]

RANTING ON US AHEAD, DON'T PROCEED IF YOU ARE EASILY OFFENDED BY FACTS!

US onto its bullying game once again. The threats have reached a point where it is not making much of a difference to the world. They have challenged the world and dictated their terms for quite long. Forcing countries to stop buying crude, stopping trade with countries. Just because the dollar is the global currency, US has got off with a lot of blackmailing in the past.

Things are changing and countries are dumping US securities and dollars in exchange of Gold. The Bretton-Woods agreement on the money supply looks like it is in real danger zone. And the only country to blame is US. They have abused their power and position for long. Used SWIFT gateway to forbid trade and blackmail countries.

Cryptocurrencies and blockchain give a real potential to the world in terms of introducing a truly global currency that is not manipulated and controlled by a group. That can not be held ransom to on the whims and fancies of US.

The coming years are going to be very interesting. I am already loving the way other countries are challenging the status-quo of US. In a month, my country refused to follow sanction by US on Iran, Russia and signed big deals in regards to Oil import, Arms acquisition, port setup etc. US needs to understand that the present global order is multi-polar and the relations between any two countries are dictated by mutual benefit and not by US.

I very much agree with you. I believe that we are not Americans. The US government is really very selfish. Their hegemony is only to serve their own people. This is the country with the most human rights, but the people of every country in the world are independent. They all need human rights. The world should compete reasonably, not hegemonism. The United States is just an empire destined to decline. It is not suitable for humans who will dominate the future. This is the last feast of US imperialism. Their politicians are anti-Christian.

[coinplus]

That is obviously a threat towards a company or an organization that puts dictatorship levels to test. US should not be capable of sanctioning companies for working with Iran, you can have a beef with Iran, I can understand that, countries sometimes do not treat each other well and there are even wars but even without a war you can be just enemies from afar, that is what we called cold war, nobody died in cold war but it was a war.

US is more than welcome to have another cold war and this time select Iran as enemy or do whatever but as soon as they start throwing other people under the bus and force them to choose sides that's tyranny. Of course swift would choose the USA side because they would make more money from USA instead of Iran but they do not want to do such a thing, they just want to conduct business but forced to choose sides.

[laoou]

The international image of the United States is falling sharply. No country is willing to obey countries that rely on force to rule the world. This way is very backward. In fact, is the United States the country with the most human rights? So why do the Iranian people have no human rights? I am against such an incident. France has already triggered a revolutionary incident in cooperation with the United States. If Europe continues to be ignorant, it may collapse.

[Homeless_Victim]

It looks like some people there found a work around...

Iranian Charity Receiving Bitcoin Donations
https://cointrader21.wordpress.com/2018/11/05/iranian-charity-receiving-bitcoin-donations/

[dothebeats]

The US is at it again bullying services under them to do what they wanted. If they think they can bully any other nation and use services that these countries rely on to make a point, then they're clearly wrong. Somewhere along the way, people will find alternatives, and as of now cryptocurrencies are the only viable avenue available. The EU and the US are trying so hard to impair Iran's economic capability and status, and it's clearly not painting a good image for a lot of people.

[clololck]

RANTING ON US AHEAD, DON'T PROCEED IF YOU ARE EASILY OFFENDED BY FACTS!

US onto its bullying game once again. The threats have reached a point where it is not making much of a difference to the world. They have challenged the world and dictated their terms for quite long. Forcing countries to stop buying crude, stopping trade with countries. Just because the dollar is the global currency, US has got off with a lot of blackmailing in the past.

Things are changing and countries are dumping US securities and dollars in exchange of Gold. The Bretton-Woods agreement on the money supply looks like it is in real danger zone. And the only country to blame is US. They have abused their power and position for long. Used SWIFT gateway to forbid trade and blackmail countries.

Cryptocurrencies and blockchain give a real potential to the world in terms of introducing a truly global currency that is not manipulated and controlled by a group. That can not be held ransom to on the whims and fancies of US.

The coming years are going to be very interesting. I am already loving the way other countries are challenging the status-quo of US. In a month, my country refused to follow sanction by US on Iran, Russia and signed big deals in regards to Oil import, Arms acquisition, port setup etc. US needs to understand that the present global order is multi-polar and the relations between any two countries are dictated by mutual benefit and not by US.

The current international image of the United States is already very bad. Iran should not be sanctioned. It is wrong for the United States to ban Iran from selling crude oil. The news of crude oil is now widely recognized. Crude oil resources are now close to infinity and cannot be bullied by crude oil control around the world! Every citizen of every country has human rights, and I oppose this!

[shinharu10282016]

RANTING ON US AHEAD, DON'T PROCEED IF YOU ARE EASILY OFFENDED BY FACTS!

US onto its bullying game once again. The threats have reached a point where it is not making much of a difference to the world. They have challenged the world and dictated their terms for quite long. Forcing countries to stop buying crude, stopping trade with countries. Just because the dollar is the global currency, US has got off with a lot of blackmailing in the past.

Things are changing and countries are dumping US securities and dollars in exchange of Gold. The Bretton-Woods agreement on the money supply looks like it is in real danger zone. And the only country to blame is US. They have abused their power and position for long. Used SWIFT gateway to forbid trade and blackmail countries.

Cryptocurrencies and blockchain give a real potential to the world in terms of introducing a truly global currency that is not manipulated and controlled by a group. That can not be held ransom to on the whims and fancies of US.

The coming years are going to be very interesting. I am already loving the way other countries are challenging the status-quo of US. In a month, my country refused to follow sanction by US on Iran, Russia and signed big deals in regards to Oil import, Arms acquisition, port setup etc. US needs to understand that the present global order is multi-polar and the relations between any two countries are dictated by mutual benefit and not by US.

The current international image of the United States is already very bad. Iran should not be sanctioned. It is wrong for the United States to ban Iran from selling crude oil. The news of crude oil is now widely recognized. Crude oil resources are now close to infinity and cannot be bullied by crude oil control around the world! Every citizen of every country has human rights, and I oppose this!

Not a really new story or a recent issue. They have done that bullying ever since they destroyed Iran in their "war" even before that. They have always been "keen" on what other third world country and what  businesses in their countries do. We can't do anything bout that unless SWIFT moves their location to another "accepting country".