Could South Africa Operate Without
At RussellStone Financial Services, a client recently raised a sobering question:
“In the highly unlikely event that South Africa is sanctioned and removed from SWIFT, are there alternative ways to transfer money internationally?”
We consulted several reliable industry sources and the response was clear:
The short answer is no.
SWIFT, the Society for Worldwide Interbank Financial Telecommunications, is currently the only globally accepted, secure method for cross-border financial transactions. While RussellStone is actively exploring alternative platforms and is in advanced discussions with a service provider, no solution currently matches SWIFT’s global reach or security, especially under the pressure of sanctions.
“It would be somewhat risky for the USA to impose sanctions on South Africa, given the significant presence of US companies in the country,” one source noted. “As of now, SWIFT remains the only option available.”
Could South Africa Operate Without
At RussellStone Financial Services, a client recently raised a sobering question:
“In the highly unlikely event that South Africa is sanctioned and removed from SWIFT, are there alternative ways to transfer money internationally?”
We consulted several reliable industry sources—and the response was clear:
The short answer is no.
SWIFT, the Society for Worldwide Interbank Financial Telecommunications, is currently the only globally accepted, secure method for cross-border financial transactions. While RussellStone is actively exploring alternative platforms and is in advanced discussions with a service provider, no solution currently matches SWIFT’s global reach or security—especially under the pressure of sanctions.
“It would be somewhat risky for the USA to impose sanctions on South Africa, given the significant presence of US companies in the country,” one source noted. “As of now, SWIFT remains the only option available.”
WHAT IF SANCTIONS HAPPEN?
Being sanctioned by the United States would likely damage trade relations with American entities—but it would not necessarily cut off access to other SWIFT-participating countries. However, if South Africa were fully removed from SWIFT, the fallout could be devastating:
- Isolation from first-world economies
- Loss of access to major currencies and banking systems
- Collapse of cross-border financial activity
“The alternatives to SWIFT would not matter,” one expert warned,
“as no countries that subscribe to the UN would be able to do business with us under broad sanctions. The UK or US could also impose their own restrictions, worsening the situation.”
Even with potential alternative payment rails, global sanctions screening would still apply, severely limiting any workaround.
THE BROADER POLITICAL CONTEXT
This concern isn’t theoretical. According to a TimesLIVE article published April 13, 2025, the conservative Hudson Institute in the US has warned of possible broad sanctions against South Africa—including exclusion from SWIFT—due to Pretoria’s foreign policy stance.
Key developments include:
- South Africa’s neutrality on Russia’s invasion of Ukraine in 2022
- The ICJ genocide case filed by South Africa against Israel
- A proposed US bill calling for a full review of relations with South Africa, and possible sanctions against ANC leaders
While human rights advocates like Nicole Fritz have defended South Africa’s global legal engagement, some US lawmakers view its position as damaging to Western alliances.
A Drastic Step—But Not Impossible
Although cutting South Africa off from SWIFT is viewed as an extreme measure, sources agree that there would likely be diplomatic engagement first—giving the country a chance to resolve matters before any such sanctions are imposed.
“If South Africa were sanctioned and removed from SWIFT, it would be a very dark day,” one source reflected.
“We would be financially isolated, unable to participate in global trade.”
OUR COMPLIANCE
- RussellStone Treasury is an Authorised Financial Services Provider (FSP) registered with the Financial Sector Conduct Authority (FSCA).
- Registered Accountable Institution in terms of the Financial Intelligence Center Act.
- Member of the South African Association of Treasury Advisors.
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