All You Need to Know About SWIFT Codes and BIC Codes

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) was established to offer a uniform and secure method for executing international transactions. Essentially, SWIFT operates as an electronic messaging platform that enables banks worldwide to exchange information. Its standardized structure ensures clarity among banks across various nations, streamlining payments and reducing the potential for mistakes.

What is a SWIFT/BIC code?

A SWIFT code, often referred to as a BIC number, follows a standardized Business Identifier Codes (BIC) format. This code serves as a unique identifier for banks and financial entities worldwide, effectively acting as an international bank ID or address. Primarily, these codes facilitate the transfer of funds between banks, especially during international wire transfers and SEPA transactions. Additionally, banks utilize these codes to communicate and exchange messages amongst themselves.

What is IBAN?

You may be requested for either an International Bank Account Number (IBAN) or a SWIFT code when making an international wire transfer. The abbreviation “IBAN” refers to International Bank Account Number.

IBANs are comparable to SWIFT codes in function but aren’t widely utilized. In order to make a payment to a recipient in Europe or the Middle East, for instance, an International Bank Account Number (IBAN) may be required. Make sure you have all the information needed to handle your payment securely by checking the requirements for the nation you’re sending to.

When do I need to use a SWIFT code?

A SWIFT code is typically needed for receiving international money transfers, as it uniquely identifies a specific bank and ensures accurate international payments. For example, if you’re being paid by an international company for an invoice, they might request your SWIFT code to complete the transaction securely.

How will I know what a SWIFT code looks like?

Typically composed of 11 characters, the SWIFT code is segmented into four parts: the initial four letters denote the bank; the following two letters represent the country; the next two letters pinpoint the bank’s location; and the final (optional) three characters discern the specific receiving branch.

AAAABBCCDD

  • AAAA – 4-character bank code that looks like a shortened version of the bank’s name

  • BB – 2-character country code telling you which country the bank is in

  • CC – 2-character location code telling you where the bank’s head office is located

  • DDD – 3-character branch code (optional) telling you where the specific branch is located

Swift Code
Swift Code
The Society for Worldwide Interbank Financial Telecommunication, officially known as S.W.I.F.T. SC, is a Belgian-based cooperative that facilitates financial transactions and payments among select global banks.

Countries & Bank Branches with SWIFT or BIC Codes