Iran's banks have been able to dodge a ban on carrying out global transactions through the Swift electronic-payment system, Swift officials said.

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Last year, U.S. lawmakers succeeded in pressuring Belgium-based SWIFT electronic payment system to block Iranian transactions.

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The US started receiving data from Swift, a money transfer system based in Brussels which handles millions of transactions daily.

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But in its report the committee said the Department for Work and Pensions "must provide swift assurance that the transition to Universal Credit will not leave the benefit system vulnerable to fraud".

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The Europe-based organization that clears money transfers, known as Swift, this month banned 20 Iranian financial institutions from using its international bank-transfer system.

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The US and EU have placed restrictions on dealings with Iran's Central Bank - the only official channel for Iranians to transfer money abroad - and Swift, the body that handles global banking transactions, has cut Iran's banks out of its system.

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SWIFT, which facilitates the bulk of global cross-border payments, disconnected designated Iranian financial firms from its messaging system after European regulators ordered the company to do so.

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