SWIFT

SWIFT, which stands for the Society for Worldwide Interbank Financial Telecommunication, is a vast messaging network used by financial institutions to quickly,

accurately and securely send and receive information, such as money transfer instructions.

Here’s a simplified explanation of how it works:

Unique Identification: Each member institution is assigned a unique ID code,

known as a BIC (Bank Identifier Code), which identifies the bank’s name, country, city, and branch.

Secure Messaging: When a bank wants to send money to an overseas account, it sends a payment transfer message to the recipient’s bank using the secure SWIFT network.

Transaction Execution: The receiving bank gets the message and, upon verification, credits the money to the intended recipient’s account.

It’s important to note that SWIFT itself does not hold or transfer funds but provides the platform for secure communication between banks.

More than 11,000 financial institutions in over 200 countries use SWIFT to facilitate international transactions