Iran banks re-connect to SWIFT

Business Materials 1 February 2016 19:20 (UTC +04:00)

Baku, Azerbaijan, Feb. 1

By Khalid Kazimov - Trend:

Iranian banks officially re-connected to the Society for Worldwide Interbank Financial Telecommunication (SWIFT) on Feb. 1.

"Iranian banks will be able to carry out money transactions through SWIFT in two to seven days," Nasser Hakimi, Central Bank of Iran's head of communications and information technology department said, ISNA reported Feb. 1.

He added that SWIFT issued the needed licenses for Iranian banks to re-connect after four years of disconnection due to sanctions, but technical preparations will take two-seven days for starting the financial transactions.

Iran says resumption of connection to SWIFT will decrease the cost of foreign trades by 15 percent.

Earlier, Iran's Central Bank announced that the sanction on the country's 12 banks was lifted.

According to the announcement, the country's Central Bank, as well as Tejarat Bank, Refah Bank, Export Development Bank of Iran, Bank Sepah, Post Bank Iran, Bank of Industry and Mine, Iran-Europe Commercial Bank, Tose`e Ta`avon Bank (Cooperative Development Bank), Sina Bank, Bank Mellat and Bank Melli are now eligible to use SWIFT.

However, on Jan. 20, the governor of the Central Bank, Valiollah Seif, said that despite the removal of international sanctions at least two Iranian banks are still in the sanctions list.

In a joint statement on Jan. 16, the EU High Representative Federica Mogherini and Iran's Foreign Minister Mohammad Javad Zarif announced the implementation of the JCPOA, aka nuclear deal, and the removal of economic sanctions on Iran.

According to the statement, EU confirmed that the legal framework, providing for lifting of its nuclear-related economic and financial sanctions, is effective.