Russia is feeling the crunch of massive economic sanctions after several of it’s banks are being removed from SWIFT, an international payments system.
But what exactly is SWIFT and how will it affect Russia’s ability to accesses or transfer monetary funds?
U-W foundation’s Chris Moore has more than 20 years experience as an investment professional. He explains that SWIFT is an acronym for Society of Worldwide Interbank Financial Telecommunication.
“SWIFT is sometimes referred to as a messaging system but really it’s the infrastructure for payments going in and out of country. How the mechanics work is the Russian individual would send it to the Russian bank. The bank would access SWIFT which would basically transmit that payment to the U-K bank (for example) and the subsequently the U-K bank would give it to the ultimate recipient,” said Moore.
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