Deutsche Bank is calling for a reform of SWIFT, the global financial messaging system which has faced criticism since February’s $81 million heist at Bangladesh Bank.
- Germany’s flagship lender – which the International Monetary Fund has branded as the world’s systemically most risky bank for its numerous links to other lenders – is one of the biggest users of SWIFT. It is one of the first large banks to publicly urge changes.
- SWIFT is only as strong as its weakest member, Deutsche Bank’s Chief Information Security Officer Hinrich Voelcker said on Wednesday, adding the bank was in discussions with SWIFT about the consequences of the Bangladesh heist.
- “If trust in this system breaks down we all have a problem,” he said, without saying which specific reforms he believes are needed.
- SWIFT is a member-owned cooperative, dominated by large Western banks, including lenders such as Citi , JP Morgan and BNP Paribas , which built the network decades ago.
- It now connects more than 10,000 different financial firms and industry experts have said all of its users should have to meet a minimum security standard to continue accessing it.
SWIFT ONLY AS STRONG AS IT’S WEAKEST LINK
Since the 1990s, many smaller banks in emerging markets have joined SWIFT, which stands for Society of Worldwide Interbank Financial Telecommunication.
Since the Bangladesh incident many banks have added security features, Deutsche Bank’s Voelcker said, adding rapid alert systems helped banks exchange information on hack attempts and patterns.
Full article: Deutsche Bank Seeking Alternatives, Reforms to SWIFT (TruNews)