What is SWIFT?

Anna Mikhailova
Anna Mikhailova
December 1, 2014
What is SWIFT?

In 1973, the SWIFT system was created. It includes 263 banks from 15 countries in North America and Europe. Despite the fact that the SWIFT system was formed a long time ago, today not everyone knows about its purpose and operation scheme.

What is SWIFT?

S.W.I.F.T. (Society for Worldwide Inerbank Financial Telecommunication) is a major international organization that operates in the field of financial communications. Its main goal is to ensure prompt, reliable and secure transmission of financial messages and payments. Today, this organization has 10,500 financial organizations and banks operating in 215 countries of the world. It also includes numerous brokerage companies and central depositories. About 1,000,000 transactions involving interbank payments, remittances, buying and selling securities go through the SWIFT system per day.

SWIFT operation

It is important not only to know what SWIFT is, but also how this international organization functions. So, financial messages and payments are made only between the participants of SWIFT.Therefore, before making financial transactions, it is important to find out whether the banks of the sender and the receiver are members of this organization. The same thing to know in the case of buying or selling securities.

The job of SWIFT in most cases is to transfer funds. They can be made without opening an account, which entails crediting and payment in cash. Also, such financial transactions are carried out with the account and credited to it. They can be initiated by individuals or legal entities, in the role of recipients can be both entrepreneurs and ordinary citizens.

According to the SWIFT policy, financial transactions can be made only with the following data and documents:

  • details of the bank of the beneficiary of the transfer (including the code SWFIT);
  • passport or other identity document;
  • the presence of the account (if the transfer is made from it);
  • statement about the financial transaction.

If transfers are made without the involvement of Russian banks, then all data should be translated into English. Without this, the financial transaction will not be accepted for execution.

It is important to keep in mind that when transferring money from an account to an account by banks, a low commission is envisaged (its size depends on the amount of the amount, as well as on the type of legal entities), but most importantly, there are no restrictions on the amounts used.

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