SWIFT
Interbank transfer system
The system for international bank transfers; every bank has a SWIFT code (BIC). A transfer moves through SWIFT and correspondent banks. Being cut off from SWIFT means financial isolation.
- What it is
- An international network through which banks exchange payment orders
- What it does not do
- It does not move money itself — it only passes secure messages to banks
- Where it applies
- Any international transfer: paying an investment, a contribution, property
- How long it takes
- Usually 1-5 business days depending on the chain of banks
- The main risk
- Getting stuck in the correspondent bank’s compliance, not in the network itself
In plain words
SWIFT (Society for Worldwide Interbank Financial Telecommunication) is an international network through which banks exchange secure payment messages. Put simply: SWIFT is not money and not a payment system but “the banks’ post”. Your bank sends an instruction through it — “debit here, credit there” — while the money itself moves through correspondent accounts.
Thousands of financial institutions in more than 200 countries are connected to the network. Each participant has its own code — the BIC, also usually called the “SWIFT code”. It is this code, together with the IBAN, that you give in the payment details when sending money abroad.
What matters in practice for the client: the speed and fate of a transfer depend not on the network itself but on the chain of banks the message passes through. The longer the chain and the larger the sum, the greater the chance that the payment will be held for a compliance check. We map out the payment route and prepare supporting documents in advance so that the money arrives without stopping.
When you will encounter SWIFT
What you need to know about SWIFT
- A messaging network between banks
- Not a payment system
- Money moves through correspondent accounts
- The bank’s BIC (SWIFT code)
- IBAN or account number
- The recipient’s exact name
- Usually 1-5 business days
- Fees along the chain
- The currency affects the route
- Compliance check
- A request on the source of funds
- Returned if the details are wrong
How a SWIFT transfer works
- 01You provide the details and the basis
- 02The bank creates the message
- 03Compliance along the chain of banks
- 04Credit to the beneficiary
- 05Payment confirmation
What the bank usually asks
- The payment reference and supporting document
- Who the recipient is and how they are connected to you
- Where the money in the account came from (source of funds)
- A contract, invoice or programme letter
- Confirmation of the sender’s tax status
Common mistakes
- A mistake in the BIC or IBAN — the transfer is returned
- An empty or vague payment reference
- Sending a large sum without the documents ready
- Counting on “tomorrow” without allowing for the bank’s cut-off time
- A transfer from a third party instead of the applicant
What this means for a BRIDGES client
We support the payment from start to finish: we check the details against the recipient’s official letter, help word the payment reference correctly and gather the source-of-funds documents in advance. This removes most of the reasons international transfers get stuck.
Frequently asked questions
01 /Is SWIFT a payment system?
No. It is a network for exchanging secure messages between banks. The money moves through correspondent accounts, while SWIFT passes instructions on whom to credit and how much.
02 /How long does a SWIFT transfer take?
Usually 1-5 business days. The time depends on the currency, the length of the chain of correspondent banks and whether the payment is held for a compliance check.
03 /How does a SWIFT code differ from a BIC?
They are the same thing. BIC is the official name of the bank code, and “SWIFT code” is the colloquial term used in payment details.
04 /Why might a transfer be delayed?
Most often because of compliance: the bank or correspondent bank asks for confirmation of the purpose of the payment and the source of funds. Less often, because of an error in the details.
05 /What happens if the details are wrong?
The payment is usually returned to the sender, though not instantly and with fees deducted. That is why the details are checked against the recipient’s official letter.
06 /Can someone else pay the programme for the client?
Programmes usually require payment from the applicant themselves. A transfer from a third party almost always raises additional questions and may lead to the payment not being credited.
See also
Read next
This material has undergone editorial review by BRIDGES.
Need to send money abroad?
We will help map out the payment route and prepare the documents so that the transfer arrives without stopping.