If you would like to send money overseas, you need to walk into a bank and then transfer funds anywhere around the world. The bank will request you to provide a SWIFT code of the financial institution you want to send money to. The purpose of a SWIFT code is to identify the country, bank, and branch of the recipient’s account. International money transfers have been made easy due to the Society for Worldwide Interbank Financial Telecommunication system (SWIFT).
SWIFT is a very large messaging network that is used by banks and financial institutions to accurately and securely transmit information like money transfer instructions. Transmission of instructions is done via a standardized system of codes.
Every financial organization has its unique SWIFT code, and it contains eight to eleven characters. The right code is very important for any money transfer that is done by a bank. SWIFT codes have become a gold standard because of its scalability, security level, and reliability. The SWIFT system can be applied in different industries around the globe since it is versatile and can perform various functions.
SWIFT provides tools that can be used to flag financial crimes as well as enforcing financial law. For example, they offer reporting tools to check a client’s background for investment firms.