>...then* Italy itself will be shut out of SWIFT.

SWIFT is headquartered in Belgium. Only 2 banks out of the total 24 on the board of directors is US banks. Unless there's a hostile takeover of the SWIFT organisation by the US, I think this is a bit of a stretch. (Plot-twist: Italy is on the board of directors.)

SWIFT abides by international law and local laws. Including those against processing money transfer requests for terrorist organizations like A/I.

SWIFT refused to shunt out the Brazilian banks that kept providing services to the public figures involved on the Bolsonaro trial last year.

"Brazilian banks" were never classified as Foreign Terrorist Organizations. It is a specific designation and law that comes with 20 year prison sentences.

Are you expecting Italian banks to be classified as terrorist organizations?

If they continue to transfer money for FTOs, yes they would be.

Yes. And SWIFT.

> SWIFT abides by international law and local laws. Including those against processing money transfer requests for terrorist organizations like A/I.

A US sanction is neither a local (to all of SWIFT) or international law. The question still stands.

I doubt this is how it works, besides, swift is an international organization, not a US one.

US laws and sentences does not apply beyond US borders unless differently agreed.

> Italy itself will be

Because of a decision from the USA administration? ?!

Yes. It's the same mechanism that was used against Russia and Iran.