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Saturday, March 24, 2018

Russia to use alternative to SWIFT, avoid restrictions

The Russian Central Bank and domestic banks will use an alternative to the international Society for Worldwide Interbank Financial Telecommunication (SWIFT), a nongovernmental interbank communication line based in Brussels, Belgium, the Central Bank said.

The move to develop a Russian alternative comes in the wake of a September proposal to disconnect the Russia from SWIFT as part of sanctions against the country for its stance in the Ukrainian conflict, and the move was supported by U.S. senators.

“The new service will allow credit institutions to transmit SWIFT-format messages through the Bank of Russia in all the (Russian) regions without restrictions,” the Central Bank said in a statement.

Russian lawmakers began drafting laws and regulations for the development of their alternative shortly after the proposal was drafted in the European Parliament. SWIFT representatives have said it will not disconnect financial institutions and will remain a neutral party.
The system is set to be completed in May 2015.

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Eurasian Development Bank

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