A SWIFT code is an alphanumeric identifier used to facilitate international money transfers between banks. It ensures that funds are sent to the correct financial institution anywhere in the world.
SWIFT codes refer to the same thing as a BIC (Bank Identifier Code) and can be used interchangeably. When the term SWIFT is used, it explicitly highlights its role in the SWIFT (Society for Worldwide Interbank Financial Telecommunication) network.
A BIC code is a broader term for the standardised code that identifies a bank or financial institution. While all SWIFT codes are BICs, not all BICs are specific to the SWIFT network.
A SWIFT/BIC code typically consists of the following:
- Bank Code (4 letters): Identifies the bank.
- Country Code (2 letters): Indicates the bank's location.
- Location Code (2 letters or digits): Shows the specific branch.
- Optional Branch Code (3 characters): Specifies a particular branch.