Internal Struggle in Trump Administration Over Iran's Access to SWIFT

Several American officials reported an internal struggle within Donald Trump's administration regarding the continuation of Iran's access to the SWIFT banking system. SWIFT is an international payment system that facilitates financial communications between 11,000 banks in over 200 countries and regions. SWIFT stands for 'Society for Worldwide Interbank Financial Telecommunication,' headquartered in Belgium, but includes managers from American banks and federal agencies on its board. SWIFT monitors all international banking transactions. Several senior officials from the U.S. Treasury Department, including those hopeful about preserving the nuclear deal, the JCPOA, have discussed their efforts to maintain Iran's access to the SWIFT system in conversations with the news site 'Washington Free Beacon.' Senior SWIFT executives met last week in Washington with Trump administration officials to seek assurances for Iran's continued access to SWIFT, which enables Europe to maintain trade relations with Iran. These efforts come as President Trump and National Security Advisor John Bolton, along with other security advisors, are pressuring to cut Iran's access to SWIFT and have warned Europe about continuing economic relations with Iran. Many officials from the U.S. Treasury Department have stated they are firmly opposed to these efforts in favor of Iran and have prepared everything for the onset of the second round of U.S. sanctions against Iran, set to take effect on November 4. One of these officials mentioned that the President has ordered the reinstatement of all sanctions against Iran that were suspended during Barack Obama's administration, which means maximum economic pressure on Iran. The Washington Post was the first to report on the internal struggle within the Trump administration regarding Iran's access to SWIFT, noting that Treasury Secretary Steve Mnuchin is working to maintain Iran's engagement with SWIFT to prevent the 'undergrounding' of Iran's banking transactions. Congressional leaders have also indicated they are aware of these efforts. On September 1 of this year, it was reported that 16 Republican senators had urged the Treasury Department to take 'all necessary actions' to expel Iran from the SWIFT financial system. Meanwhile, European finance ministers announced their intention to persuade the Trump administration regarding Iran's continued access to the SWIFT system and plan to negotiate this matter during their meeting this week with Treasury Secretary Steve Mnuchin in Bali, Indonesia, at the International Monetary Fund meeting. One European diplomat stated that when the U.S. can pressure specific banks regarding Iran sanctions, there will be no need to cut Iran's access to SWIFT. However, another European diplomat criticized that American officials are not paying attention to their arguments in this regard. One SWIFT manager stated, 'Since the EU's regulations in this regard have not changed based on America's opinion, we are simultaneously seeking the views of both Europe and America on this matter.' Despite the U.S. withdrawal from the nuclear deal, the remaining five countries in the JCPOA and Iran announced on September 24 the establishment of a special mechanism to circumvent U.S. sanctions and preserve the nuclear deal. This mechanism is intended to facilitate trade and financial transactions with Tehran during the implementation of U.S. sanctions against Iran. The establishment of a 'special financial institution' for continued trade with Iran after the reinstatement of Washington's economic sanctions had been previously proposed. Bruno Le Maire, the French Economy Minister, stated on Friday, October 5, that U.S. sanctions against Iran present an opportunity for Europe to have independent financial institutions. According to Reuters, the French Economy Minister, speaking at a meeting in Slovakia, expressed, 'I am convinced that the outcome of this crisis with Iran is an opportunity for Europe to have independent financial institutions, so we can trade with whomever we want.' Bruno Le Maire emphasized, 'Washington cannot decide whether we are allowed to trade with Iran or not.'