One of the Belarusian Banks Was Disconnected From SWIFT

What is the reason for this?

Idea The bank was disconnected from the international interbank payment system SWIFT. The Internet resource infobank.by drew attention to this. The contact center of the bank Zerkalo.io confirmed this information. This decision was made because Idea Bank should join MTBank. After the reorganization, it will cease to exist as a legal entity.

SWIFT is an international interbank payment system. Some people confuse SWIFT with payment systems, for example, Visa or Mastercard. SWIFT and payment systems have different purposes. SWIFT enables the fast and secure exchange of data on funds transfers, payments, and securities exchanges. Unlike payment systems, it only carries out the transport of messages about transfers and is used at the interbank level. SWIFT is used not only by banks but also by other financial institutions, including stock exchanges, brokerage houses, investment companies.

According to infobank.by, Idea Bank was disconnected from the subscriber station of collective access to the SWIFT network. This is a service, the technical operator of which is the Belarusian Interbank Settlement Center. It allows Belarusian banks to reduce the costs of connecting to the SWIFT network through the joint use of software and hardware. It is also reported that Idea Bank is “deactivated in the SWIFT network.”

Idea Bank confirmed that the bank was disconnected from SWIFT. The reason is a reorganization. But the bank clarified that customers can now use SWIFT transfers through MTBank account number.

Let us remind you that Idea Bank should join MTBank. After the reorganization, it will cease to exist as a legal entity.

According to MTBank, the reorganization is planned to be completed by October 31. “As a result, MTBank will become the legal successor in respect of all the obligations of Idea Bank,” the bank specifies. “Most of Idea Bank's clients have already switched to servicing MTBank; Idea Bank's points of sale are opening under the MTBank Soon future, it is planned to release the much-demanded products.”

From October 1, Idea Bank has stopped lending to the individuals, as well as registration of the settlement accounts and issue of cards for salary projects.