EU, UK, Canada, US pledge to remove selected Russian banks from interbank messaging system SWIFT

The United States, European allies and Canada agreed Saturday to remove key Russian banks from the interbank messaging system, SWIFT, an extraordinary step that will sever the country from much of the global financial system.

Moscow's exclusion from SWIFT, which stands for the Society for Worldwide Interbank Financial Telecommunication, means Russian banks cannot communicate securely with banks beyond its borders.

SWIFT is an independent enterprise based in Belgium that serves as an internal messaging system between more than 11,000 banks and financial institutions in over 200 countries and territories.

The United States, European Union and Canada announced that they will impose restrictive measures aimed at preventing the Russian Central Bank from deploying its international reserves in ways that may undermine sanctions.

The official, who spoke on the condition of anonymity in order to share new details on Washington's position, said the impact of these sanctions will be felt immediately in Russia.

"You will immediately see a chilling effect fall over the Russian banking sector even beyond what's already occurred," the senior administration official said, adding that all 10 of Russia's largest financial institutions have been sanctioned.

The announcement follows rounds of joint sanctions imposed against Russia for its unprovoked assault on Ukraine.
 

https://www.cnbc.com/2022/02/26/eu-uk-canada-us-pledge-to-remove-selected-russian-banks-from-swift.html