Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
In the same category

EU Court Strikes Down Swift's Blockade Against Iranian Banks

IMG Auteur
Published : February 14th, 2013
592 words - Reading time : 1 - 2 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Opinions and Analysis


Reuters is reporting that a European Union court has ruled against the EU banking sanctions imposed on one of Iran's largest banks, which extends to the payment sanctions imposed by Swift in March of last year. This represents the second such judgment against the banking sanctions and brings into question the legitimacy of using the Swift payments network as an economic weapon.

On Tuesday, the EU's General Court ruled that, in the case of Bank Saderat, there was insufficient evidence demonstrating that the bank was involved in Iran's nuclear program. Last week, the court issued a similar ruling in the case of Bank Mellat, the largest private sector lender in Iran. Boycotted by the EU since July 2010 and blocked out of Swift since March 2012, the two banks had filed suit with the European court to challenge those sanctions. EU governments now have two months to appeal the recent decisions.

The Society for Worldwide Interbank Financial Telecommunication, or
Swift, is a worldwide financial messaging network to facilitate the interbank transfer of funds. Speaking after a news conference in Dubai, Swift's chief executive Gottfried Leibbrandt indicated that talks are continuing with European regulators about the appropriateness of requiring Swift to impose sanctions on countries such as Iran.

A global network for the transfer of funds loses some of its effectiveness once its neutrality becomes tarnished, because any member of the network could be similarly targeted without recourse.

Leibbrandt said, "There is a dialogue going on around the trade-off between using us as a sanctions tool for other countries and impeding our role as really serving as a global infrastructure mechanism." He added that "there are lots of alternatives to Swift" and international transactions can still be executed by sending instructions via telephone or email, but such alternatives are "not as secure as Swift and [lack] the convenience factor."

One such alternative is the gold bullion trade. Buyers of Iranian oil and gas must deposit payment in a local bank account and it cannot be transferred abroad. Iran sells natural gas to Turkey and receives payment in Turkish lira, which are then used to purchase gold bars in Turkey. Couriers using hand luggage carry the bullion to Dubai, where it is sold for foreign currency or shipped to Iran.

Turkish Economy Minister Zafer Caglayan
said, "We will continue to make our gold exports this year to whoever seeks them. We have no restrictions and are not bound by restrictions imposed by others." Turkey was granted a six-month U.S. waiver that exempted it from financial sanctions against Iran but the waiver is due to expire in July. Also in December, the U.S. Senate passed expanded sanctions on trade with Iran which included restricting trade in precious metals.

Caglayan maintained that Turkey's state-owned Halkbank will continue its existing transactions with Iran but some other banks had pulled back in response to U.S. pressure since those private banks had activities in the U.S.

Also, Washington has
warned Moscow on the implications for Russian banks and has sanctioned the parent company of Russia's Mir Business Bank, state-owned Bank Melli Iran, claiming that the Moscow-based bank has become a conduit for Iranian's seeking to keep trade flowing. "Only problem is Russians don't care what we think," according to Jim Rickards, author of Currency Wars: The Making of the Next Crisis.

In the meantime, over 30 cases are still pending at the EU General Court, including cases filed by the Central Bank of Iran and the National Iranian Oil Company.


By Jon Matonis
Forbes
Friday, February 8, 2013

 http://www.forbes.com/sites/jonmatonis/2013/02/08/eu-court-strikes-down-swifts-blockade-against-iranian-banks/


Companies Mentionned : Bullion | Metals X |
Data and Statistics for these countries : Iran | Russia | Turkey | All
Gold and Silver Prices for these countries : Iran | Russia | Turkey | All
<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Jon Matonis is an Austrian School economist focused on expanding the circulation of nonpolitical digital currencies. He argues that what is about to happen in the world of money is nothing less than the birth of a new Knowledge Age industry: the development, issuance, and management of private currencies.
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Is Silver a Better Bet than Gold...
03 May Roygbiv
"Silver on fire." ??? Even if it goes to 50$ nobody in my environment (and beyond) would recogize it.
Is Silver a Better Bet than Gold...
03 May Roygbiv
One can not invest in gold and or silver !!! You have it and that's it. You converted your paper to something tangible. One can invest ...
License to Steal: Italy’s Highes...
03 May Roygbiv
"Given that theft is no longer a crime, I expect an enormous outbreak of theft from Italian grocery stores. Over the course of a week I ha...
License to Steal: Italy’s Highes...
03 May Roygbiv
Feeling better now after the burp. Continuously thinking about ... gold. Trying to find a definition/description that would end all blablablah<...
License to Steal: Italy’s Highes...
03 May Roygbiv
Feeling better now after the burp. Continuously thinking about ... gold. Trying to find a definition/description that would end all blablablah<...
License to Steal: Italy’s Highes...
03 May Roygbiv
What percentage of Americans are crooks ? Making a living and contributing to GDP ? "What you have in your pocket I want to see in mine !" ??? ...
License to Steal: Italy’s Highes...
03 May Roygbiv
"heling"=dutch and is translated by Google as=fencing. ??? Selling stolen goods I want to find. The Dutch/English dictionary translated it ...
Send Out the Clowns
03 Maysam_site
As you imply, Obamacare's days are numbered. In fact these are the last days of government-protected monopolies like the monopoly that state ...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS