Russia: 70 financial institutions from 12 countries have joined our alternative SWIFT system

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About 70 financial institutions from 12 countries have already joined the alternative Russian system of SWIFT, said the governor of the Central Bank of Russia, Elvira Nabiulina.

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The big Russian banks have been cut off from SWIFT, the messaging system that supports financial transactions worldwide, in the context of Western sanctions in response to Russia’s invasion of Ukraine.

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Nabiulina said the central bank was not revealing the names of those who had joined the Russian system for fear of secondary sanctions.

In April, the head of the central bank stressed that 52 foreign organizations were members of a system for the exchange of messages developed by the Russian central bank – System for Transfer of Financial Messages (SPFS).

Russia is trying to help its banking industry cope with Western sanctions as the removal from SWIFT makes it very difficult for a bank to make or receive payments from abroad.

However, the Russian system lacks international connectivity and operates only during working, daily hours, while SWIFT operates 24 hours a day, every day.

Also, SPFS messages have a size limit that makes it less capable of handling more complex transactions.

Source: Capital

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