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What Is SWIFT, the Global Finance Arm of the West That Can Be Used to Harm Russia?

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What Is SWIFT, the Global Finance Arm of the West That Can Be Used to Harm Russia?

The United States, Canada, the European Commission, the United Kingdom, France, Germany, and Italy all supported the measures. In a statement, the group of world powers said it was “determined to continue imposing costs on Russia that will further separate Russia from the world monetary system and our economies.”
What exactly is SWIFT?

The Society for Worldwide Interbank Financial Telecommunication, or SWIFT, was founded in 1973 but does not handle any funds transfers.

However, its messaging system, which was developed in the 1970s to replace the use of Telex machines, allows banks to communicate quickly, securely, and affordably.
The United States, Canada, the European Commission, the United Kingdom, France, Germany, and Italy all supported the measures. In a statement, the group of world powers said it was “determined to continue imposing costs on Russia that will further isolate Russia from the international financial system and our economies.”

What exactly is SWIFT?

The Society for Worldwide Interbank Financial Telecommunication, or SWIFT, was founded in 1973 but does not handle any funds transfers.

However, its messaging system, which was developed in the 1970s to replace the use of Telex machines, allows banks to communicate quickly, securely, and affordably.
The non-listed Belgian firm is actually a bank cooperative that claims to be neutral.

What exactly does SWIFT do?

Banks use the SWIFT system to send standardized messages about sum transfers between themselves, sum transfers for clients, and asset buy and sell orders.

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SWIFT is used by over 11,000 financial institutions in more than 200 countries, making it the backbone of the international financial transfer system.

However, the firm’s dominant role in finance has required it to collaborate with authorities in order to prevent the financing of terrorism.
Who is SWIFT’s Russian representative?

According to the national association Rosswift, Russia is the second-largest country in terms of users, after the United States, with approximately 300 Russian financial institutions participating in the system.

SWIFT membership includes more than half of Russia’s financial institutions, according to the organization.

Russia does have its own domestic financial infrastructures, such as the SPFS system for bank transfers and the Mir system for card payments, which are both similar to the Visa and Mastercard systems.