BRUSSELS — The European Union is preparing regulations that will shut out Iran’s banks from a major financial clearinghouse used by virtually every country in the world, a senior official said Thursday.
The official, who spoke on condition of anonymity because of European Union rules, said the regulations are being worked on but should be adopted “rather quickly.”
The move is part of an unprecedented escalation of economic pressure by the United States and the EU meant to halt Iran’s suspected drive for nuclear weapons.
The Society for Worldwide Interbank Financial Telecommunication, or SWIFT, said last week it would comply with EU instructions to cut off the Iranian banks once it has clarity on what new rules will require.
SWIFT, which handles cross-border payments for more than 10,000 financial institutions and corporations in 210 countries, must comply with EU regulations because it is an European entity.
The Brussels-based group is an essential way station for international transactions, electronically converting currencies and processing payments such as those for Iran’s crude-oil exports.
The Associated Press
