SWIFT transfer

SWIFT (Society for Worldwide Interbank Financial Telecommunication)

SWIFT is a secure messaging network used by banks around the world to transmit payment instructions and other financial messages.

Operation

SWIFT does not transfer funds directly but transmits payment instructions between banks. The actual transfer goes through the clearing systems and corresponding accounts of the banks.

BIC/SWIFT code

Each participating bank is identified by an 8 or 11 character BIC code, used to correctly route instructions.

Use in international trade

SWIFT transfer is the most common payment method in international trade. It is quick (1-3 days), relatively inexpensive and widely accepted.

Sanctions and SWIFT

Exclusion from the SWIFT network is used as an instrument of financial sanctions, depriving targeted banks of the ability to carry out international transactions.