SWIFT, Society for Worldwide Interback Financial Telecommunications, is the “lubricant that the global financial system rests on.” SWIFT’s function is to allow banks to communicate with one another, allowing bank A to give permission to bank B to offer credit to an individual or company, etc. If one bank cannot communicate with other banks, then that bank and its investors are not able to move money, and this segregation from the rest of the financial sector is what is currently happening to Iranian banks. Congress has pressured SWIFT to cut off Iranian banks from the rest of the global market, but only now are they actually starting to take action. SWIFT has claimed it will only cut off the Iranian banks that have been blacklisted by the EU. Financial expert Avi Jorisch explains the impact to Iran’s economy if these banks are cut off from the rest of the world.
You can listen to Avi's interview with Frank, and all of our guests, at Secure Freedom Radio.