SPFS

SPFS (Russian: Система передачи финансовых сообщений, lit. 'System for Transfer of Financial Messages') is a Russian equivalent of the SWIFT financial transfer system, developed by the Central Bank of Russia.[1] The system has been in development since 2014, after the United States government threatened to disconnect Russia from the SWIFT system.[2]

The first transaction on the SPFS network involving a non-bank enterprise was executed in December 2017.[3] As of March 2018, over 400 institutions (mostly banks) are part of the network.[1]

Compared to SWIFT, the system faces a number of challenges, especially higher transaction costs.[4] The system only work within Russia,[3] though there are plans to integrate the network with the China-based Cross-Border Inter-Bank Payments System.[4] The Russian government is also in talks to expand SPFS to third countries such as Turkey and Iran.[5] Owing to its limitations, the SPFS system is seen as a last resort, rather than as a replacement for the SWIFT network.[1]

See also

References

  1. 1 2 3 Aitov, Timur (15 March 2018). "Натянутая струна. Возможно ли отключение России от SWIFT". Forbes.ru. Retrieved 4 October 2018.
  2. ↑ Turak, Natasha (23 May 2018). "Russia's central bank governor touts Moscow alternative to SWIFT transfer system as protection from US sanctions". CNBC. Retrieved 4 October 2018.
  3. 1 2 "«Роснефть» провела первую операцию в «русской SWIFT»". 22 March 2018. Retrieved 4 October 2018.
  4. 1 2 Aggarwal, Parv. "How U.S. Sanctions are Fostering Innovative Strategies for Resiliency in Russia". The Fletcher School, Tufts University. Retrieved 4 October 2018.
  5. ↑ "Press review: Russia eyes dumping US dollar and NATO backs Washington's INF accusation". TASS (in Russian). 4 October 2018. Retrieved 4 October 2018.
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