Updated
GL-S-05
Glossary · Banks and finance
SWIFT - the messaging network banks use for international payments
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.
01 / In 30 seconds
The short answer
- 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
02 / In plain words
What SWIFT means
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.
A case from practice
A client pays the contribution under a Caribbean programme. We agree the payment reference with their bank in advance and prepare the programme letter and evidence of the source of funds. The transfer goes through first time and arrives within the normal period — with no requests or freezes on the correspondent bank’s side.
When you will encounter SWIFT
- Paying an investment under a citizenship programme
- Transferring state fees and charges
- Buying property abroad
- Funding an account abroad
- Moving capital when relocating
- Settlements with an international partner
03 / What it covers
What you need to know about SWIFT
What it is
- A messaging network between banks
- Not a payment system
- Money moves through correspondent accounts
Bank details
- The bank’s BIC (SWIFT code)
- IBAN or account number
- The recipient’s exact name
Money and timing
- Usually 1-5 business days
- Fees along the chain
- The currency affects the route
Risks
- Compliance check
- A request on the source of funds
- Returned if the details are wrong
04 / How it works
How a SWIFT transfer works
You provide the details and the basis
Bank details from an official letter and the underlying document.
The bank creates the message
Your bank sends the instruction over the SWIFT network.
Compliance along the chain of banks
Correspondent banks check the purpose and source of the money.
Credit to the beneficiary
The recipient's bank credits the account.
Payment confirmation
We keep the payment confirmation for the programme or the deal.
05 / Key facts
What the bank usually asks
01What it is
Banks' postal service
SWIFT carries payment instructions; the money itself moves through correspondent accounts.
02Reach
Over 200 countries
Thousands of banks and financial institutions. Each has its own BIC, also called the SWIFT code.
03Timing
Usually 1-5 business days
It depends on the currency, the length of the bank chain and checks at the correspondent.
04Main risk
Compliance, not the network
A payment is most often held at a correspondent bank asking about its purpose and source of funds.
Common mistakes
Getting the BIC or IBAN wrong
Check the details against the recipient's official letter: a wrong payment comes back slowly and minus fees.
Writing a vague payment purpose
State the contract, invoice or programme letter and what the payment is for.
Sending a large sum without documents
Prepare proof of the source of funds before transferring.
Paying from someone else's account for the applicant
Transfer from the applicant's own account: programmes expect the payment from them.
06 / Expert advice
How to prepare in advance
Before a large international transfer, the payment details are checked against the recipient’s official letter, not against correspondence. The payment reference is worded precisely and backed by a document: a contract, an invoice, a programme letter. The source-of-funds file is kept to hand — the bank may request it mid-process. Then the payment passes along the chain without stopping.
What we do for you. 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.
Dmitry NagyTax consultant, international taxation and compliance (ex-Big4)
07 / Questions
Frequently asked questions
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.
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.
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.
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.
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.
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.
Related terms
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