As tensions are increasing between the US and Russia over the Ukraine issue, experts have said that the United<\/span> States could as a last resort exclude Russia from the Society for Worldwide Interbank Financial Telecommunication (SWIFT).<\/span><\/p>\n SWIFT is a messaging network used by banks and financial institutions globally for quick and faultless exchange of information pertaining to financial transactions.\u00a0<\/span><\/p>\n The network connects more than 11,000 banking and securities organizations in over 200 countries and territories.<\/span><\/p>\n Headquarters:<\/b> Belgium<\/span><\/p>\n Each participant on the platform is assigned a unique eight-digit SWIFT code or a bank identification code (BIC).\u00a0<\/span><\/p>\n If a person, say, in New York with a Citibank account wants to send money to someone with an HSBC account in London, the payee would have to submit to his bank the London-based beneficiary\u2019s account number along with the eight-digit SWIFT code of the latter\u2019s bank. Citibank would then send a SWIFT message to HSBC. Once that is received and approved, the money would be credited to the required account.<\/span><\/p>\n SWIFT is owned and controlled by its shareholders<\/strong> (financial institutions) representing approximately 3,500 firms from across the world. The shareholders elect a Board of 25 independent Directors representing banks across the world, which governs the Company and oversees the management of the Company.<\/span><\/p>\n SWIFT is overseen by the G-10 central banks<\/strong> (Belgium, Canada, France, Germany, Italy, Japan, The Netherlands, United Kingdom, United States, Switzerland, and Sweden)<\/em> as well as the European Central Bank (ECB)<\/em>, with its lead overseer being the National Bank of Belgium.<\/span><\/p>\n In 2012, this framework was reviewed, and the SWIFT Oversight Forum<\/strong> was established in which the G-10 central banks are joined by <\/span>the central banks of India, Australia, Russia, South Korea, Saudi Arabia, Singapore, South Africa, the Republic of Turkey, and the People\u2019s Republic of China.<\/span><\/p>\n If a country is excluded from SWIFT, its foreign funding would take a hit, making it entirely reliant on domestic investors. This is particularly troublesome when institutional investors are constantly seeking new markets in newer territories.<\/span><\/p>\n Iranian banks were ousted from the system in 2018 despite resistance from several countries in Europe.<\/span><\/p>\n Source: <\/b>This post is based on the article \u201c<\/b>What is SWIFT and why is Russia being threatened with exclusion from the service?<\/b>\u201d <\/b>published in Indian Express <\/b>on 9th<\/sup> Feb 2022.<\/b><\/p>\n","protected":false},"excerpt":{"rendered":" What is the news? As tensions are increasing between the US and Russia over the Ukraine issue, experts have said that the United States could as a last resort exclude Russia from the Society for Worldwide Interbank Financial Telecommunication (SWIFT). What is SWIFT? SWIFT is a messaging network used by banks and financial institutions globally… Continue reading What is SWIFT and why is Russia being threatened with exclusion from the service?<\/span><\/a><\/p>\n","protected":false},"author":10317,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,9],"tags":[10500],"class_list":["post-167712","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-public","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1700602755},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/167712","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10317"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=167712"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/167712\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=167712"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=167712"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=167712"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}What is SWIFT?<\/b><\/h5>\n
How does SWIFT work?<\/b><\/h5>\n
\n\n
\n Note:<\/b> SWIFT is merely a platform that sends messages and does not hold any securities or money. It facilitates standardized and reliable communication to facilitate the transaction.<\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n How is SWIFT governed?<\/b><\/h5>\n
What happens if one is excluded from SWIFT?<\/b><\/h5>\n
Are any countries excluded from SWIFT?\u00a0<\/b><\/h5>\n