On what condition can the Swift freeze a payment?

SWIFT itself does not directly freeze payments; it is a messaging platform used by financial institutions to securely transmit information about financial transactions. However, when a transaction is flagged for any reason — such as suspicion of fraud, compliance issues, or legal orders (like sanctions) — the financial institutions involved (such as banks and payment processors) can take actions that may result in a payment being delayed or frozen. Here are some common conditions under which a payment might be frozen: 1. **Regulatory Compliance**: If a transfer raises flags related to anti-money laundering (AML) or counter-terrorism financing (CTF) compliance, it may be placed on hold pending investigation. 2. **Sanctions and Embargoes**: Payments involving individuals or entities on sanction lists (e.g., OFAC, EU sanctions) may be frozen to comply with legal requirements. 3. **Fraud Alerts**: If a bank suspects that a payment is fraudulent, it may freeze the transaction until it can verify the details. 4. **Customer-Led Actions**: Customers themselves may request a freeze on payments based on their concerns or disputes. 5. **Legal Orders**: Courts or law enforcement may issue orders that require a financial institution to freeze a payment or account as part of an investigation. In all these cases, the specific processes and criteria for freezing payments are determined by the financial institutions and applicable laws, not by SWIFT itself.