SWIFT to cut services to Iran's banks BRUSSELS, March 15 (UPI) -- SWIFT, the firm that handles international bank communications, said it would suspend services for 30 Iranian banks to comply with an EU directive. SWIFT is a cooperative member-owned organization using the acronym that stands for the Society for Worldwide Interbank Financial Telecommunications. Although international, it is based in Belgium, and complies with European Union laws, The New York Times reported Thursday. "Following an EU Council decision, SWIFT is today announcing it has been instructed to discontinue its communication services to Iranian financial institutions that are subject to European sanctions," SWIFT said Thursday in a statement. Payments for oil exports made to Iran are handled by the country's central bank, which makes SWIFT's move potentially devastating to Iran's oil economy. The EU, the United States and a few other nations are attempting to pressure Iran to abandon an alleged nuclear weapons program. U.S. Treasury Undersecretary for Terrorism and Financial Intelligence David Cohen said, "The United States welcomes today's action ... which we understand includes the Central Bank of Iran." "Today's decision reflects the growing international consensus that substantially increased pressure is needed to convince the Iranian regime to address the international community's concerns about its illicit nuclear activities," Cohen said. SWIFT Chief Executive Officer Lazaro Campos said, "This EU decision forces SWIFT to take action. Disconnecting banks is an extraordinary and unprecedented step for SWIFT. SWIFT said its move will become effective March 17. "It is a direct result of international and multilateral action to intensify financial sanctions against Iran," SWIFT said. The chairman of the United Against Nuclear Iran group Mark Wallace called SWIFT's move "a significant step in the right direction." SWIFT reported that its network provides secure communications and fund transfers for 10,000 institutions. Iranian banks used the system more than 2 million times in 2010, the most recent year with data available, the Times said.