What is a SWIFT code in bank details in simple words?: One solution how to transfer money from one country bank to another country bank. How to transfer money abroad? How to receive funds from another country? One way is to use the system of SWIFT codes assigned to financial institutions around the world. Knowing this combination of letters and numbers, you can transfer the amount from abroad to any bank of another country.
What is the Full form of SWIFT?
The full form of SWIFT is Society for Worldwide Interbank Financial Telecommunications. SWIFT is a member-owned cooperative that offers secure and safe money transfers for its representatives.
From this article you will learn about SWIFT Code: —
- Bank SWIFT code
- What is a SWIFT code for?
- Find out the SWIFT code of the bank
- Make a SWIFT transfer
- Get a SWIFT transfer —
What is a SWIFT code in bank
SWIFT code– SWIFT code is an unique combination of Latin letters and numbers that is assigned to each bank in the international settlement system. It is issued to a financial institution after joining the Society of Worldwide Interbank Financial Communications Channels. —
Reference! The decision to create a SWIFT system was made in 1973 in Brussels. Initially, 248 banks from 15 countries of the world became its participants. In 2021, it has already included about 12 thousand banks from 200 countries of the world, as well as more than 1 thousand large corporations.
The essence of the SWIFT code system is that a financial institution in the global space cannot be identified by its name, but by its unique code. Therefore, if you transfer money from a Bank of a country to ABCD Bank, the direction and end point of the transfer will be clear from the code of the financial institutions. ,
What does a SWIFT code consist of?
By default, SWIFT code consist 11 characters in 4 groups:
These 4 groups – WWWW XX YY ZZZ ( It is given to explain)
Consider the meaning of each of the groups of unique code.
WWWW- In SWIFT code
WWWW. The first four characters are the letter designation of the financial institution. Most often, this is the abbreviated name of a bank or corporation in Latin. —
XX- In SWIFT code
XX. The second two characters are the letter designation of the state according to the ISO 3166 standard. This part allows you to understand which country the funds are sent to. For example, for India it is IN , Russia it is RU, for Kazakhstan it is KZ, for Germany it is DE, for the USA it is US, etc.
YY- In SWIFT code
YY. The third two characters are an alphanumeric designation of the region to simplify the search for a bank branch across the country. For example, in Russia there are such codes as MM – Moscow, 3T – Togliatti, 8X – Blagoveshchensk. —
Important! If the country is small, the region group is not filled in, it is replaced by units. If 0 is present in the combination, then the code is running in test mode.
ZZZ-In SWIFT code
ZZZ. The last three characters are the alphanumeric designation of the bank branch. It is used only in relation to large banks and corporations with an extensive network of branches. —
Important! If there are few branches, there are none, or if we are talking about the head office of a financial institution, then the last three characters are designated as XXX or omitted altogether.
What is a SWIFT code for?
If you need to transfer funds from one country to a bank in another country, you need to know the SWIFT code of this financial institution. A unique combination of letters and numbers is required by the sender. The recipient does not need it – he simply withdraws funds from his account. —
Figure 1. How the SWIFT system works
Transfers in the international SWIFT system are similar to standard money transfers. If you know the unique code of the beneficiary’s bank, then you can write off funds even from a bank card.
Important! The system involves not only the recipient’s and sender’s banks, but also their correspondents – intermediaries in the transaction. Therefore, when filling out an application for a transfer, the sender must also indicate their details. —
Figure 2. Examples of details for transferring funds
Important! The sender may not have his own bank account: it is enough for him to deposit funds in the form of cash at the cash desk of any bank in his country.
Transfers of funds can be carried out by citizens, organizations, entrepreneurs. Funds are usually credited to the recipient’s account within 1-7 days. In terms of reliability and security, the SWIFT system has no analogues in the world yet.
What is a SWIFT code in bank details in simple words?: One solution how to transfer money from one country bank to another country bank. How to transfer money abroad? How to receive funds from another country? #SWIFT #SWIFTCode #deeanatechhttps://t.co/79sSE0bKXA pic.twitter.com/JzgHNUZ1pV— DEEANA TECH (@DeeanaTech) February 27, 2022
How to find out the SWIFT code of your bank
To make an international money transfer, the sender needs to take from the recipient the unique SWIFT code of his financial institution. Where can you find it?
How to make a transfer using a SWIFT code?
If you want to make a transfer using the SWIFT system, it is important to clarify whether the sender’s and recipient’s banks are connected to it. If both financial institutions work with such transactions, you can start the operation.
Terms of SWIFT transfer
The sender must come to the office of his bank with a passport and bank details of the recipient. An international transfer involves three steps.
- Filling out an application: In the form, you must specify the country, city, name of the financial institution and its correspondent, their SWIFT codes, full name. or name of the recipient. The details of the recipient in the application are written in Latin.
- Additional Information: A bank employee checks the sender’s passport and in some cases asks for additional information – about the region, the recipient’s branch, etc.
- Depositing money: The remitter deposits the required amount in the bank’s cash desk or debits the account. There is a fee for the transfer
Although SWIFT is an international transfer system, each of its participants has the right to set their own transaction fees. In addition, some central banks impose their own conditions on the system.
- maximum transfer limit – none
- if transferred between individuals, then with an amount of more than 3-5 thousand dollars, the bank will need to present an additional document to justify the operation (for example, a medical certificate, as confirmation of financial assistance for treatment, etc.
Important! The SWIFT system operates continuously: around the clock, without stopping on weekends and holidays. This compares favorably with standard transfer systems such as CONTACT and Western Union. —
Commissions are charged for money transfers in the SWIFT system. They are set by sending banks and correspondents as a fee for their services.
The fee is charged as a percentage of the transfer amount, subject to minimum and maximum limits. —
How to get a SWIFT transfer
As soon as the funds are credited to the beneficiary’s account, they are displayed in the Personal Account of the Internet Bank. If the client does not use Internet banking, the bank notifies him by ringing or SMS.
Conditions for receiving a transfer
To withdraw funds in the form of cash, you can use a standard bank card linked to your account. This can be done at any branch of the bank on the passport
Important! Financial institutions set limits on receiving. If we are talking about writing off a large amount, then the client will have to present a document confirming the legitimacy of the operation (for example, a contract for the purchase of real estate, a medical report on an expensive operation, etc.).
Tariffs for receiving a SWIFT transfer
Similar to sending funds via the SWIFT system, when receiving money, banks can also set their own tariff limits. Russian financial institutions operate on similar terms: