SWIFT 'Awaiting Green Light' to Resume Services to Iranian Banks

The Global Interbank Communications Association, SWIFT, announced on Monday, October 25, that it is 'awaiting the green light' for 'most' Iranian banks to resume their connections with this financial institution and benefit from its services. SWIFT, which facilitates secure financial transactions among approximately 9,700 banks worldwide, cut off its services to Iranian banks following international sanctions against Iran's nuclear program in late 2011. However, with the achievement of a comprehensive nuclear agreement between Tehran and global powers, SWIFT's policies towards Iranian financial institutions will also change. According to a Reuters report, the financial institution's statement indicates that banks that were subject to sanctions and specifically mentioned in the nuclear agreement will be automatically reconnected to SWIFT 'after the completion of administrative processes, system reviews, and technical coordination.' This statement follows the recent action by the European Union, which approved the lifting of sanctions against Iran. These sanctions included a ban on global financial cooperation, such as SWIFT, with Iran. Now, with the resumption of Iran's connection to global economic networks, the possibility of foreign companies cooperating with Iran is also facilitated. Nevertheless, SWIFT has emphasized that some Iranian banks will remain under sanctions. SWIFT is a special identification code for banks and international financial institutions, through which they can conduct money transfers for the purchase and sale of goods and services. The SWIFT code is the largest and most important electronic communication system for banks worldwide. Iran, like other countries, was a partner in this system before the imposition of international sanctions and conducted a significant portion of its trade transactions using this system.