You’ll likely be asked for a SWIFT code when transferring money internationally. Different banks have their own SWIFT codes, and it’s necessary to provide the correct one. This article will explain this code and let you know how to find the correct one.
What Is A SWIFT Code?
SWIFT stands for Society for Worldwide Interbank Financial Telecommunications. It is the standard messaging system for financial transactions and payments. Global banks use it to exchange instructions, and every connected bank has its unique Bank Identifier Code (BIC) or SWIFT code. This code is how banks pass messages to each other and facilitate financial transactions.
What Does It Look Like?
It includes 8 to 11 characters in this format; AAAABBCCDDD.
- The first four characters – AAAA – signify the banking institution. It’s usually a shortened version of the institution’s name.
- BB is the identifier for the country in which the bank is located.
- CC identifies the banking institution’s head office.
- DDD points to a specific banking branch. These last three characters are not always present.
Here’s an example; IBOCUS44.
- IBOC signifies the International Bank of Chicago.
- US represents the United States of America.
- 44 identifies Illinois state, where the International Bank of Chicago is based.
Where Can I Find My BIC?
Different countries have different BICs, and you can find the correct one through these mediums;
- Bank website: You can check your financial institution’s website for a list of BICs for all branches. You’ll usually find it under the FAQ or SWIFT Finder sections.
- Third-party websites: Many third-party websites aggregate BICs for global banks and display them to viewers. They organize the information in a way that you can effortlessly search.
- Customer service: You can call your institution’s customer service line and ask for the code for your specific branch. A support representative should be able to give you the exact information.
- Ask the recipient: You can always ask the recipient to provide the BIC for their bank.
- Banking statement: You can request a formal bank statement anytime, and you’ll likely find the code written on the document.
Checking BICs By Countries
The SWIFT network has unique identifiers for each country, usually a shortened version of the country’s name. You can identify what country a bank is located in by looking at the fifth and sixth letters. For example, GB represents Great Britain, US represents the United States of America, BR represents Brazil, CN represents China, etc.
If the country code does not match where the bank is located, the BIC is incorrect.
How Do SWIFT Transfers Work?
SWIFT is the network that global banks use to send deposit instructions. When you wire money to a foreign recipient, your banking firm contacts the recipient’s firm via its BIC, instructing it to deposit money in the recipient’s account. Your banking firm then removes the equivalent amount from your account.
It works similarly if you’re the recipient of a foreign transfer. The sender’s firm contacts your firm with instructions to deposit money into your account. The sender’s firm then deducts the equivalent amount from their account.
How Long Do SWIFT Transfers Take?
It takes between 1 and 5 working days for the transfer to settle. Sometimes, the money passes through several intermediary banks before getting to the final recipient, which adds delays. Other factors affecting the speed include
- Currency conversions.
- Anti-money laundering checks.
- Weekends and bank holidays.
How Much Does A SWIFT Transfer Cost?
Banks charge between 3% and 5% commission for foreign transfers, which can be steep. Some banks charge flat fees of between $10 to $100 (or your local currency equivalent). You can confirm the fees with your banking institution before initiating a transfer.
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