US law will penalize those dealing with payment systems competing with SWIFT, including Chinese, Russian and Iranian systems
US Senator announced Marco Rubio About his presentation law Project To ensure that those who violate US laws and sanctions are held accountable, he said: “China, Russia and Iran are evading US sanctions by using alternative financial systems.” The proposed US law would penalize anyone who uses payment systems competing with SWIFT, including Chinese, Russian and Iranian systems, in an attempt to curb trading outside the system. Petrodollar, and prevent the disintegration of the US dollar’s dominance.
The senator published the text of the law indicating the US President’s directive to impose sanctions on any financial institution from China, Russia, Iran, North Korea, Cuba, or Venezuela that uses the China Interbank Payment System (CIPS), the Russia Financial Message Transmission System (SPFS), or the Iran Electronic Payment Messaging System (SEPAM) to verify or conduct transactions, as an alternative to the bank transfer system known as “SWIFT”, which is operated by the Society for Worldwide Financial Telecommunication as a messaging network to ensure the payment of cross-border payments to finance global trade.
The proposed law would also terminate or block any correspondent or payable-through accounts of the offending financial institutions in the United States, or block all transactions in the property or visas of such institutions or the institutions’ leadership in the United States or in the possession of a U.S. person.
US internal procedures in law
- Request a report from the US Treasury Department outlining the scope and use of CIPS, SPFS, and SEPAM systems worldwide.
- Monitoring the risks of widespread adoption of these systems to US national security
- Recommendations for maintaining and enhancing American influence in the global financial system.
The latest data from the International Monetary Fund on the proportion of currencies in official foreign exchange reserves indicates a gradual and continuous decline in the share of the dollar in foreign exchange reserves allocated to central banks and governments. This is offset by an increase in the share of non-traditional reserve currencies, including the Australian dollar, the Canadian dollar, the Chinese renminbi, the South Korean won, the Singapore dollar, and Scandinavian currencies.
