SWIFT Code (Definition & Usage)
A SWIFT code (also known as BIC - Bank Identifier Code) is a unique identification code assigned to banks and financial institutions worldwide. It consists of 8 or 11 characters that identify the bank, country, location, and optional branch information.
Structure of a SWIFT code:
- First 4 characters: Bank code (letters)
- Next 2 characters: Country code (letters)
- Next 2 characters: Location code (letters/numbers)
- Last 3 characters: Branch code (optional)
Example:
DEUTDEFF500
- DEUT: Deutsche Bank
- DE: Germany
- FF: Frankfurt
- 500: Specific branch
Primary Uses:
- International wire transfers
- Cross-border payments
- Message exchange between financial institutions
- Payment order verification
Geographic Application:
SWIFT codes are used globally and are recognized by more than 11,000 financial institutions across 200+ countries and territories. The system is headquartered in Belgium and operates under Belgian law, but its services are used worldwide.
Important Notes:
- SWIFT codes are essential for international transactions
- Different from IBAN (International Bank Account Number)
- Managed by the Society for Worldwide Interbank Financial Telecommunication
- Used by banks, brokers, exchanges, and other financial institutions
A valid SWIFT code is required for most international money transfers, ensuring accurate routing of funds between financial institutions worldwide.