July 17, 2017
By: Luca Ziprani
A Quick History:
· Society for Worldwide Interbank Financial Telecommunication or SWIFT for short is one of the main providers of secure financial messaging services.
· Allows the exchange of automated & standardised financial messages.
· Provides a variety of different transactional messaging services.
· SWIFT has modular components allowing it to make real time payments.
· At the centre of the system is a Domestic Messaging Channel or DMC – which supports high messaging volumes and low latency.
· It is an addressing database – allows short name alias, emails, addresses or mobile numbers is linked to customers bank accounts.
· Featuring a Payment Gateway or PAG – This is an interface that connects participants to the DMC. It provides seamless integration and infrastructure re-use, supports APIs (such as fraud detection), pre-clearing and pre-settlement messaging.
· ISO 20022 Standards RT-RPS market Practice allowing market inerrability with other market infrastructure.
Alliance Lite 2 – Star Product
Alliance Lite 2 (AL2) is built, hosted and operated by SWIFT; designed to suit the varying cloud connectivity needs of SWIFT customers. It can be used for manual and automated message exchange with additional options such as back office integration to make the SWIFT Community Cloud an end-to-end solution.
Targeted towards Investment managers, corporates and banks who desire cloud based solutions and direct SWIFT connection to their banks and counterparties.
SWIFT Political & Economical Power
SWIFT’s messaging services are used and trusted by more than 11,000 financial institutions in more than 200 countries and territories around the world. – SWIFT.com
It comes as no surprise that, as with most International monopolies, Governments will try to levy them for political gain. Although SWIFT has always maintained a “neutral” position as a non for profit organisation, it eventually caved in to western pressure in 2012 during the “Iran Nuclear Crisis”. From 2012 to 2016, Iran had all its international assets frozen, roughly € 100 Billion, causing a financial crisis which forced Iran to succumb to western demands.
In 2015, SWIFT was levied as a “financial weapon” once again, this time against Russia, as a direct response to the “Crimean Crisis”. The United States and EU were conscious of the billions of Euro’s Russia had in its offshore banks across the world, and that without SWIFT they could not access them.
However, Russia saw this coming and already started a contingency plan. With the help of their Chinese partners, Russia has successfully developed a “SWIFT alternative” i.e. the MIR. Several banks have begun the process of migrating to this new system, in Russia and also in Europe, for fear of political oppression. Although it is nowhere near SWIFT, it is quickly gaining traction and improving.
Whatever dependency and Western control Russia’s banking system had faced previously, this has now eased.
Nations under American sanctions no longer use the SWIFT system. Quietly, American Express and Citibank have joined the MIR, as have most Northern European banks. As of May 2017, there seems to be only two Western financial institutions working with the new system. – Matthew Raphael Johnson – Americanfreepress
The MIR structure is proof that Russia has removed the Rothschild presence from Russia.
Although Russia’s alternative system to SWIFT isn’t fully functional, Russia would likely come out on top in the long-term” Matthew Allen – Russia Insider
If you are recruiting for any SWIFT professionals please contact me on +44 (0) 203 763 9521 or email me on email@example.com