(OP)inions Swift sanctions

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February 28, 2022

New sanctions have been agreed to further isolate Russias economy and financial system after initial penalties failed to persuade President Vladimir Putin to withdraw his forces from Ukraine.

The decision to penalize Russia‘s central bank and exclude some Russian banks from the SWIFT messaging system, used for trillions of dollars’ worth of transactions around the world, was announced Saturday statement by the U.S., European Commission, France, Germany, Italy, U.K. and Canada. The agreement includes measures to prevent the Russian Central Bank from deploying its international reserves to undermine sanctions.

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“Political leaders made the right decision to cut selected Russian banks off of SWIFT as they did in 2012 when they cut Iranian banks off of SWIFT,” said Leonard Schrank, who was CEO of the organization for 15 years, including when the U.S. Treasury Department created a classified program to tap SWIFT data to track the flow of terrorist financing after the Sept. 11 attacks.

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