Iran's leading banks denied pay facility

Iran's leading banks will formally be denied access to the world's pre-eminent electronic payment system from today (Saturday), dealing a potentially crippling blow to the country's already faltering economy.The Society for Worldwide Interbank Financial Telecommunication, a Brussels-based co-operative better known as SWIFT, said it was expelling as many as 30 Iranian financial institutions, including the country's central bank, from its secure network.The move, which will further isolate Iran from the world economy by closing down the targeted institutions' ability to conduct international business, comes after the European Union confirmed it was banning all forms of financial transactions with blacklisted Iranian firms."The EU decision forces SWIFT to take action," the co-operative's chief executive, Lazaro Campos, said. "Disconnecting banks is an extraordinary and unprecedented step for SWIFT. It is a direct result of international and multilateral action to intensify financial sanctions against Iran."Because of SWIFT's vast global reach - more than 10,000 institutions in 210 countries use its secure messaging codes to transact pounds 3.8?trillion a day - US officials have described it as the "silver bullet" of sanctions against Iran.