MP: 120405

BRICS Bank to rival World Bank & IMF; will facilitate Trade in local Currencies

 

(1) BRICS leaders lambast the West’s “aggressive monetary policies” & dominance of global institutions

(2) BRICS “South-South” development bank an alternative to World Bank.

(3) BRICS bank will facilitate Trade in local Currencies (bypassing $)

(4) BRICs Bank To Rival World Bank and IMF and Challenge Dollar Dominance

(5) BRICS bank could struggle to match the World Bank’s expertise – Robert Zoellick

(6) BRICS flay West over IMF reform, monetary policy

(7) Brics nations threaten IMF funding – Financial Times

(8) Loose Brics – FT.com editorial

(9) BRICS bank will bypass SWIFT…Jewry’s Weapon of Mass Destruction – Brother Nathanael

(10) SWIFT inter-bank network … Iranian banks have been disconnected

 

Photo of the BRICS leaders (Brazil, Russia, India, China, South Africa) at the Delhi conference:

http://dzswc0o8s13dx.cloudfront.net/goldcore_bloomberg_chart3_02-04-12.png

 

(1) BRICS leaders lambast the West’s “aggressive monetary policies” & dominance of global institutions

 

http://tv.ibtimes.com/brics-nations-talk-tough-to-west-start-rival-development-bank/4504.html

 

BRICS Nations Talk Tough To West, Start Rival Development Bank

 

Marisa Krystian | Mar 29, 2012 4:49pm EDT | 1min:43sec

 

The leaders of Brazil, Russia, India, China and South Africa, meeting in New Delhi on Thursday, drafted a joint statement lambasting the West’s “aggressive monetary policies” and dominance of global institutions.

 

Collectively known as the BRICS, the heads of the world’s five largest emerging economies also took steps at the fourth annual summit toward greater unity and launched a proposal to create a financial institution that could eventually rival the World Bank. …

 

(2) BRICS “South-South” development bank an alternative to World Bank.

 

http://www.aljazeera.com/news/asia/2012/03/2012328121225841826.html

 

BRICS summit to explore creation of bank

 

Group of five rising powers to discuss creation of “South-South”

development bank in mould of World Bank.

 

Last Modified: 28 Mar 2012 14:55

 

The proposal of a development bank is high on the agenda at the summit of the five BRICS bloc nations – Brazil, Russia, India, China and South Africa – starting on Thursday in New Delhi.

 

The proposal for a “South-South” development bank in the mould of the World Bank is one of the main points to be discussed by the group of five rising powers at the fourth BRICS summit.

 

The initiative would allow the countries to pool resources for infrastructure improvements, and could also be used in the longer term as a vehicle for lending during global financial crises such as the one in Europe, officials said.

 

“What will be discussed (in New Delhi) is the possibility of setting up a BRICS development bank for infrastructure projects, development, not only in member countries but also in developing countries,” Maria Edileuza Fonteneles Reis, a senior Brazilian foreign ministry official, said.

 

Fernando Pimentel, the Brazilian industry and trade minister, told reporters in Brasilia last week, “the proposal to set up a BRICS bank, an international, investment bank of these five countries,” is the main item on the agenda.

 

He said that the countries would sign a deal at the summit to study the creation of the bank.

 

Ambitious project

 

Sudhir Vyas, a senior Indian foreign ministry official, told reporters on Monday that the BRICS would have to determine how the bank would be structured and capitalised. Such an ambitious project would take time, he said.

 

“We don’t set up a bank every ordinary day,” he said.

 

Pimentel said the proposed bank did not mean “abandoning multilateral mechanisms” such as the World Bank (WB) and the InterAmerican Development Bank (IDB) but was a response to today’s economic necessities.

 

The WB and the IDB “have specific functions which they fulfill well, such as providing financing for low-income countries” but the current needs go well beyond this, Pimentel said.

 

A benchmark equity index derivative shared by the stock exchanges of the five BRICS nations is also to be launched on Friday, the exchanges said earlier this month.

 

They would be cross-listed, so can be bought in local currencies.

 

The leaders are also expected to sign agreements allowing their individual development banks to extend credit to other members in local currency, a step towards replacing the dollar as the main unit of trade between them.

 

The five members now account for roughly 18 per cent of the world’s GDP,

15 per cent of global trade and hold 40 per cent of global currency reserves. They account for the 40 per cent of the world population.

Source:

 

Agencies

 

(3) BRICS bank will facilitate Trade in local Currencies (bypassing $)

 

http://www.just-international.org/index.php?option=com_content&view=article&id=5352:brics-summit-2012-member-nations-sign-pacts-to-promote-trade-in-local-currency&catid=45:recent-articles&Itemid=123

 

BRICS summit 2012: Member nations sign pacts to promote trade in local

currency

 

Reuters : New Delhi, Thu Mar 29 2012, 14:13 hrs

 

http://www.indianexpress.com/news/mohapatra/929984/

 

NEW DELHI: In an initiative to promote trade in local currencies, the BRICS nations today signed two agreements to provide line of credit to business community and decided to examine the possibility of setting up a development bank on lines of multilateral lending agencies.

 

The agreements were signed by officials of five countries — Brazil, Russia, India, China and South Africa — at the fourth BRICS summit here.

 

“The agreements signed today by development banks of BRICS countries will boost trade by offering credit in our local currency,” Prime Minister Manmohan Singh said in a media statement after the meeting.

 

The Master Agreement on Extending Credit Facility in Local Currency and the Multilateral Letter of Credit Confirmation Facility Agreement are being perceived as a step towards replacing the dollar as the main unit of trade between them.

 

Such intra-BRICS initiatives, according to officials, will not only contribute to enhanced trade and investments among the nations but would also facilitate economic growth in difficult economic times.

 

As regards the initiative to set up a BRICS Development Bank on the lines of multilateral lending agency, Singh said the proposal would be examined by the finance ministers.

 

“A suggestion has been made to set up a BRICS development bank, we have directed our FM to examine the proposal and report back by next summit,”

Singh said.

 

The initiative to set up a BRICS Development Bank on the lines of the World Bank would allow the member countries to pool resources for infrastructure development and could also be used to lend during the difficult global environment.

 

Intra-BRICS trade is about USD 230 billion and has the potential of more than doubling to USD 500 billion by 2015.

 

By The Times of India

29 March 2012

@ The Times of India

 

(4) BRICs Bank To Rival World Bank and IMF and Challenge Dollar Dominance

 

http://www.fxstreet.com/fundamental/analysis-reports/gold-investments-market-update/2012/04/02/

 

Mon, Apr 2 2012, 11:29 GMT

 

by  Mark O’Byrne

 

BRICs Bank To Rival World Bank and IMF and Challenge Dollar Dominance

 

Outgoing President of the World Bank, Robert Zoellick, after just three days ago dismissing the idea of a BRICs created, new global multi lateral bank, has come around and endorsed a BRICs bank in an interview with the FT.

 

Zoellick had initially said that a BRICs bank and potential rival to the western and U.S. dominated IMF and World Bank, would be difficult to implement given competing BRIC interests.

 

He acknowledged that a BRICs bank was being created and said that the World Bank supported such a bank. He said that not having Russia and China as part of “the World Bank system” would be a “mistake of historic proportions”.

 

Leaders of the BRICS nations meeting in India appear to have made much progress in creating a new global bank as the emerging economies seek to convert their growing economic might into collective diplomatic influence.

 

The five countries now account for nearly 28% of the global economy, a figure that is expected to continue to grow.

 

On Thursday morning, President Hu Jintao of China, President Dmitry Medvedev of Russia , President Dilma Rousseff of Brazil, President Jacob Zuma of South Africa and Prime Minister Manmohan Singh of India shook hands at the start of the one day meeting in New Delhi.

 

Top of the agenda was the creation of the grouping’s first institution, a so-called “BRICS Bank” that would fund development projects and infrastructure in developing nations.

 

The initiative would allow the countries to pool resources for infrastructure improvements, and could also be used in the longer term as a vehicle for lending during global financial crises such as the one in Europe, officials said.

 

Less noticed and commented upon is the aspirations of the BRIC nations to become less dependent on the global reserve currency, the dollar and to position their own currencies as internationally traded currencies.

 

The leaders of BRIC nations and other emerging market nations have adopted the idea of conducting trade between the five nations in their own currencies. Two agreements, signed among the development banks of Brazil, Russia, India, China and South Africa, say that local currency loans will be made available for trade between these countries.

 

The five fast growing nations participating in local currency trade will allow participants to diversify their foreign exchange reserves, hedging against the growing risk of a euro or dollar crisis.

 

The BRICS want to have easy convertibility of currency to make it easier to use the real, ruble, rupee, renminbi and rand amongst themselves without having to always use the US dollar. Higher intra-Brics trade, conducted in their own currencies would shield their economies from economic dislocations in the west.

 

In the long run, if global dependence and exposure to the dollar is to be reduced, then the BRICs currencies will have to trade amongst themselves, creating an intra Brics currency market. This could lead to a special reserve BRICs currency that could rival the IMF’s Special Drawing Rights (SDRs) and in time a regional currency could emerge.

However, the EU’s experience of a single currency may make this less likely. …

 

(5) BRICS bank could struggle to match the World Bank’s expertise – Robert Zoellick

 

http://www.reuters.com/article/2012/03/29/us-worldbank-zoellick-brics-idUSBRE82S0JP20120329

 

BRICS interests differ over joint bank, says Zoellick

 

By Nita Bhalla

 

BHITARKANIKA SANCTUARY, India | Thu Mar 29, 2012 7:57am EDT

 

(Reuters) – A plan to form a joint development bank by the BRICS group of the world’s most powerful emerging economies will have a hard time getting off the ground and could struggle to match the World Bank’s expertise, World Bank President Robert Zoellick said.

 

Deflecting criticism that the World Bank is too dominated by the United States, Zoellick said it had changed dramatically in his term, with a managing team now made up of many more figures from the emerging world.

 

Leaders from Brazil, Russia, India, China and South Africa were meeting in New Delhi on Thursday to outline plans for a new bank which will help fund infrastructure and act as alternative lender to the World Bank and other finance bodies.

 

Zoellick told Reuters in an interview late on Wednesday that there are already a series of regional development banks and many countries have their own such banks, but if a BRICS bank was formed, the World Bank would work closely with it.

 

“I think the interests of India may be more in terms of bringing capital in, the interests of China may be more in terms of internationalizing the Renminbi. I think Russia is a little uncertain and Brazil has a very big development bank,” he said.

 

“The World Bank works with private sector funders, development banks, regional banks and we’d work with a BRICS bank, but it would probably be difficult for it to replicate the knowledge and expertise that we fund.”

 

Zoellick, who was visiting a bank-funded coastal conservation project in east India’s Orissa state, told reporters later that setting up a new bank was “a complicated venture” which would present challenges such as getting capital and a good rating from international financial agencies.

 

The head of the global money lender is ending his five-year term in June and the job is now one of the most hotly contested, with a U.S.

candidate for the first time being challenged by two contenders from the developing world.

 

Under a so-called “gentleman’s agreement” between the U.S. and Europe, Washington has claimed the top post at the World Bank since its founding after World War Two, while a European has always led the International Monetary Fund (IMF), its sister Bretton Woods institution.

 

“TRANSPARENT” CONTEST

 

There have been calls by BRICS and other developing nations that these top positions should better reflect the growing power and influence of emerging economies, which are now responsible for more than half of global economic growth.

 

Ngozi Okonjo-Iweala, Nigerian finance minister and former managing director of the World Bank under Zoellick, has gained the support of African leaders, while Brazil has nominated former Colombian finance minister Jose Antonio Ocampo.

 

But they face stiff opposition from the U.S.-nominated candidate Jim Yong Kim, a Korean-American health expert whose name was put forward by U.S. President Barack Obama on Friday.

 

Zoellick said all three candidates were “excellent”, but added that the bank’s senior leadership was already showing more and more representation from emerging economies.

 

“If you take the overall leadership at the bank, with all the different positions, it is more representative. I appointed the first chief economist who was from China,” he said.

 

“At one point, the three managing directors that reported to me were all from the developing world. I think that it’s not just a question of the head of organization, but the organization as a whole.”

 

He said the decision on his successor would be made in April by the bank’s board, which represents its 187 shareholders. The selection process is transparent and based on merit, he said, dismissing concerns by BRICS that it was heavily weighted in favor of the U.S. candidate.

 

The candidates will have to think through where they want to take the bank, he said, adding that the board of governors, will interview each of them to understand their plans for the future.

 

Zoellick who took over the bank in 2007 after serving as the U.S. deputy secretary of state, said it was good that Americans have a chance to run global institutions.

 

“The United States has never had anybody lead the IMF, they’ve never led the World Trade Organisation, they’ve never had anyone be the U.N.

Secretary General, they’ve never had anybody lead the regional development banks,” he said.

 

“So personally as an American, who has worked with multilateral organizations, it’s good for Americans to have a chance to run some of them. Whether it’s the World Bank or others, that’s a whole different question.”

 

(Editing by Frank Jack Daniel & Kim Coghill)

 

(6) BRICS flay West over IMF reform, monetary policy

 

By Rajesh Kumar Singh

 

NEW DELHI | Thu Mar 29, 2012 3:14pm EDT

 

http://www.reuters.com/article/2012/03/29/us-india-brics-idUSBRE82S05K20120329

 

(Reuters) – Leaders of the BRICS group of emerging market nations pressed Western powers to cede more voting rights at the IMF this year and flayed the rich world’s reflationary monetary policies for putting global economic stability in jeopardy.

 

“This dynamic process of reform is necessary to ensure the legitimacy and effectiveness of the Fund,” Brazil, Russia, India, China and South Africa said in a joint declaration after their one-day summit in New Delhi.

 

“We stress that the ongoing effort to increase the lending capacity of the IMF will only be successful if there is confidence that the entire membership of the institution is truly committed to implement the 2010 Reform faithfully.”

 

Promised changes to voting rights at the IMF have yet to be ratified by the United States, adding to frustration over reform of the G7 and the U.N. Security Council, where India and Brazil have been angling for years for permanent seats.

 

The BRICS leaders also accused rich countries of destabilizing the world economy five years into the global financial crisis.

 

“It is critical for advanced economies to adopt responsible macroeconomic and financial policies, avoid creating excessive global liquidity and undertake structural reforms to lift growth that create jobs,” they said in a joint declaration.

 

The rich world’s monetary policy “brings enormous trade advantages to developed countries, and results in unfair obstacles for other countries,” Brazil’s President Dilma Rousseff said at the summit.

 

Security was tight in New Delhi, days after an activist set himself on fire in protest at Chinese rule in Tibet, dying from his injuries just hours before China’s President Hu Jintao arrived. Police grappled with small groups of pro-Tibet protesters.

 

IRAN’S NUCLEAR RIGHTS

 

The declaration said the crises over Iran’s nuclear program should be resolved diplomatically and should not be allowed to escalate. It also recognized the right of Iran to pursue peaceful nuclear energy.

 

“We agreed that lasting solution to the problems in Syria and Iran can only be found through dialogue,” Indian Prime Minister Manmohan Singh said.

 

The five BRICS nations, which collectively account for nearly half the world’s population and a fifth of its economic output, signed an agreement to extend credit facilities in their local currencies, a step aimed at reducing the role of the dollar in trade between them.

 

They also agreed to examine in greater detail an Indian proposal to set up a BRICS-led South-South Development Bank, funded and managed by the BRICS and other developing countries.

 

“We have directed the finance ministers to examine the proposal and report back at the next summit,” Singh said.

 

Other moves to bring their economies closer together include the launch on Friday of benchmark equity index derivatives allowing investors in one BRICS country to bet on the performance of stock markets in the other four members without currency risk. The indexes will be cross-listed on their stock exchanges from Friday.

 

(Additional reporting by Matthias Williams, Brian Winter and Alexei Anishchuk; Editing by John Chalmers and Jonathan Thatcher)

 

(7) Brics nations threaten IMF funding – Financial Times

 

http://www.ft.com/intl/cms/s/0/a3b88472-7982-11e1-8fad-00144feab49a.html#axzz1r1AdspjE

 

Brics nations threaten IMF funding

 

By James Fontanella-Khan in New Delhi

 

Last updated: March 29, 2012 7:07 pm

 

http://www.ft.com/cms/s/0/a3b88472-7982-11e1-8fad-00144feab49a.html#ixzz1r1AnTMEX

 

Leaders of the world’s most powerful emerging economies have threatened to withhold additional financing requested by the International Monetary Fund to fight the European sovereign debt crisis unless they gain greater voting power at the Fund. Meeting in India on Thursday, the heads of state from Brazil, Russia, India, China and South Africa expressed frustration at the slow pace of reform at the Washington-based multilateral lender, historically dominated by Europe and the US.

 

In a joint statement, the so-called Brics nations said there was an urgent need to “better reflect economic weights” and “enhance the voice and representation of emerging market and developing countries” at the IMF.

 

“We stress that the ongoing effort to increase the lending capacity of the IMF will only be successful if there is confidence that the entire membership of the institution is truly committed to implement the 2010 reform faithfully,” the said. The Fund’s shareholders agreed in 2010 to shift more of its voting weight towards emerging markets nations, but the US has not passed enabling legislation.

 

The leaders also criticised western countries for their poor handling of the global economy in the aftermath of the financial crisis. Dilma Rousseff, Brazil’s president, accused western countries of causing a “monetary tsunami” by adopting aggressive expansionist policies such as low interest rates, which are making emerging economies less competitive globally.

 

“This crisis started in the developed world,” Ms Rousseff said. “It will not be overcome simply through measures of austerity, fiscal consolidations and depreciation of [labour costs], let alone through quantitative easing policies that have triggered what can only be described as a monetary tsunami, have led to a currency war and have introduced new and perverse forms of protectionism in the world.”

Despite uniting over reform of the IMF, the Brics failed to coalesce around one of the two non-US candidates seeking the presidency of its sister organisation, the World Bank. Ngozi Okonjo-Iweala, the Nigerian finance minister, and José Antonio Ocampo, the former Colombian finance minister, are both vying for the job, which traditionally goes to an American.

 

Barack Obama, US president, has nominated Jim Yong Kim, the president of Dartmouth College and a former head of the HIV/Aids programme at the World Health Organisation.

 

Speaking to the Financial Times, Mr Ocampo said Mr Kim lacked the appropriate experience for the job. He also said he would be open to discussions with Ms Okonjo-Iweala on whether one of them should pull out of the race at some point so that the developing world can back a single candidate.

 

“I think in terms of development expertise it is quite clear to everyone that the finance minister of Nigeria and myself stand above the US candidate, who has very narrow expertise in development,” Mr Ocampo said. “He is an excellent physician, nobody denies that, but we’re talking about a development institution.”

 

Separately, the Brics, which represent about 45 per cent of the world’s population and a quarter of the global economy at $13.5tn, set up a finance minister-led working group to consider formally creating a common Development Bank for the grouping.

 

This is the first step towards an emerging market bank and comes as the five countries have demanded greater financing support from the World Bank for infrastructure development.

 

Robert Zoellick, the outgoing president of the World Bank, told Reuters that a Brics-backed bank would have a hard time getting off the ground and would struggle to match the World Bank’s expertise. The criticisms by the Brics reflected their growing confidence as well as frustrations about the skewed governance structure of multilateral organisations.

Eswar Prasad of the Brookings Institution, a former senior IMF official, said the emerging nations see the IMF, the World Bank and other organisations as being unfairly stacked in favour of advanced economies.

 

“They see the policies of advanced economies and the present structure of the international monetary system as significant threats to their own economic stability,” he said.

 

Additional reporting by Robin Harding in Washington

 

(8) Loose Brics – FT.com editorial

 

29 Mar 2012

 

Loose Brics

 

http://www.ft.com/cms/s/0/48a861ba-79aa-11e1-8fad-00144feab49a.html

 

As a marketing tool, the Brics brand has been a huge success. It has focused attention on the rising power of five fast-growing economies that account for almost half the world’s population and a quarter of its economy. But for all its sunny show of … {someone please send me the rest}

 

(9) BRICS bank will bypass SWIFT…Jewry’s Weapon of Mass Destruction – Brother Nathanael

 

Brother Nathanael <bronathanael@yahoo.com>       5 April 2012 12:17

 

SWIFT…Jewry’s Weapon Of Mass Destruction

 

http://www.realzionistnews.com/?p=711

 

By Brother Nathanael Kapner

 

{http://www.realjewnews.com/

My Name Is Brother Nathanael Kapner

I’m A “Street Evangelist”

I Grew Up As A Jew

I’m Now An Orthodox Christian

I Wish To Warn How Zionist Jews

Are Destroying Christianity Throughout The World}

 

Can anything good come out of Brussels?

 

Well, with International Jewry’s reign of financial terror across the Eurozone — operating out of Brussels — and command of globalization’s financial trading service, “SWIFT” — also operating out of Brussels —most would answer with a resounding, “No way.”

 

And now with Zionist Jewry’s — headed by AIPAC and its countless powerful Lobbies throughout the Western World — latest personification of evil focused on Iran’s President, Mahmoud Ahmadinejad and its Supreme Leader, Ali Khamenei, Jewry’s weapons of economic mass destruction have found a whole new target.

 

You see, the so-called “nuclear threat” that Iran supposedly poses toward Israel, (and of course the entire world as well), is just a cover for Jewish Finance Capital’s efforts to delay…emphasis on delay…the end of the dollar as the world’s reserve currency, at least until they can secure control of a brand new one.

 

It’s the threat of Iran’s oil exports traded in the various currencies of the BRICS nations—Brazil, Russia, India, China, South Africa—that poses the real threat to the International Banking Cabal, at least until Zionist Jewry can figure out a way to gain total control over the BRICS nations.

 

And they found a way to start doing just that: “SWIFT.”

 

You see, just last week, the leaders of the BRICS nations met in New Delhi to deal with the implications of America’s latest sanction against Iran. A world-threatening sanction at that.

 

By banning Iran’s banks from using member-owned “SWIFT”…the way money in international trading is sent from bank to bank…(apparently under Zionist-America control), ALL the nations of the world have been put ON NOTICE that they could very well be next.

 

And the BRICS ain’t happy ’bout that.

 

For this is truly Zionist Jewry’s brand new way of waging war. If bombs and NATO invasions won’t work—then “SWIFT” — Zionist Jewry’s deadly Weapon of Mass Economic Destruction, will.

 

But International Jewry could be shooting itself in its foot.

 

Not only have the BRICS pledged to start trading in their OWN currencies instead of the dollar — some in gold with Iran — they also agreed to form an alternative International Bank to rival the Zionist-run World Bank with an infrastructure providing for their own “SWIFT” system of transferring money from bank to bank.

 

[CLIP: “The leaders of Brazil, Russia, India, China, and South Africa, meeting in New Delhi on Thursday, drafted a joint statement lambasting the West, quote, ‘aggressive monetary policies and dominance of global institutions.’

 

“Collectively known as the BRICS, the heads of the world’s five largest emerging economies also took steps at the Fourth Annual Summit towards greater unity and launched a proposal to create a Financial Institution that could eventually rival the World Bank.”]

 

What does this mean for the future of Judaic tyranny?

 

Methinks that the BRICS’ foremost nation, an emerging Russia…now a Christian country with two Christian leaders, Vladimir Putin and Dmitry Medvedev…can lead the way to an entirely New and Better World Order.

 

(10) SWIFT inter-bank network … Iranian banks have been disconnected

 

http://en.wikipedia.org/wiki/Society_for_Worldwide_Interbank_Financial_Telecommunication

 

Society for Worldwide Interbank Financial Telecommunication

 

The Society for Worldwide Interbank Financial Telecommunication

(“SWIFT”) operates a worldwide financial messaging network which exchanges messages between banks and other financial institutions. SWIFT also markets software and services to financial institutions, much of it for use on the SWIFTNet Network, and ISO 9362 bank identifier codes

(BICs) are popularly known as “SWIFT codes”. …

 

The majority of international interbank messages use the SWIFT network.

As of September 2010, SWIFT linked more than 9,000 financial institutions in 209 countries and territories, who were exchanging an average of over 15 million messages per day (compared to an average of

2.4 million daily messages in 1995).[1] SWIFT transports financial messages in a highly secure way, but does not hold accounts for its members and does not perform any form of clearing or settlement.

 

SWIFT does not facilitate funds transfer, rather, it sends payment orders, which must be settled via correspondent accounts that the institutions have with each other. Each financial institution, to exchange banking transactions, must have a banking relationship by either being a bank or affiliating itself with one (or more) so as to enjoy those particular business features.

 

SWIFT is a cooperative society under Belgian law and it is owned by its member financial institutions. SWIFT has offices around the world. SWIFT headquarters, designed by Ricardo Bofill Taller de Arquitectura are located in La Hulpe, Belgium, near Brussels. …

 

In January 2012, the advocacy group United Against Nuclear Iran (UANI) implemented a campaign calling on SWIFT to end all relations with Iran’s banking system, including the Central Bank of Iran. UANI asserted that Iran’s membership in SWIFT violated USA and EU financial sanctions against Iran as well as Swift’s own corporate rules.[17]

 

Consequently, in February 2012, the U.S. Senate Banking Committee unanimously approved sanctions against SWIFT aimed at pressuring the Belgian financial telecommunications network to terminate its ties with blacklisted Iranian banks. Expelling Iranian banks from SWIFT would potentially deny Iran access to billions of dollars in revenue and spending using SWIFT, but not from using IVTS. Mark Wallace, president of UANI, praised the Senate Banking Committee.[18]

 

Initially SWIFT denied it was acting illegally[18], but now says “it is working with U.S. and European governments to address their concerns that its financial services are being used by Iran to avoid sanctions and conduct illicit business.”[19] Targeted banks would be – amongst others – Saderat Bank of Iran, Bank Mellat, Post Bank of Iran and Sepah Bank [20].

 

On 17 March 2012, following agreement two days earlier between all 27 member states of the Council of the European Union and the Council’s subsequent ruling, SWIFT disconnected all Iranian banks from its international network that had been identified as institutions in breach of current EU sanctions, and that even more Iranian financial institutions could be disconnected from the network.

 

[edit]United States of America government control over transactions within the European Union

 

On February 26th 2012 the Danish newspaper Berlingske reported that USA authorities evidently have sufficient control over SWIFT to seize money being transferred between two EU countries (Denmark and German), since they have seized around U$26,000 which were being transferred from a Danish to a German bank. The money was a payment by a Danish businessman for a batch of Cuban cigars previously imported to Germany by a German supplier. As justification for the seizure, the U.S. Treasury has stated that the Danish businessman has violated the United States embargo against Cuba.[21] …

 

This page was last modified on 5 April 2012 at 03:31.

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