Seonglae ChoSociety for Worldwide Interbank Financial Telecommunication
SWIFT (Society for Worldwide Interbank Financial Telecommunication) is an international cooperative that provides a network enabling financial institutions worldwide to send and receive information about financial transactions in a secure, standardized environment.
SWIFT codes, also known as Business Identifier Codes (BIC), have been designated as ISO 9362 since 1994. These codes are essential for international money transfers and are required for any cross-border banking transactions.
Key Characteristics
- Global Network
- Connects banks and financial institutions worldwide
- Serves as the primary system for international banking communication
Limitations
- Transaction Processing
- Non-real-time settlement (processed in batches over several days)
- Complex routing through multiple banks
Transaction Flow: Local Bank Branch → National Head Office → Intermediary Bank → Foreign Bank Head Office → Foreign Bank Branch
