If you are a business owner in Singapore, making international payments may be a part of your daily routine. While making international payments, you must have certainly come across the terms BIC/SWIFT. These codes are essential when making international payments. They ensure that your money reaches the right financial institution securely. Despite how useful this code is, many business owners are not aware of where they can find it and why it is used for international payments. In this article, we will cover what a SWIFT code is, where you can find it, and finally, when you can use the code.
What is a SWIFT/BIC code?
A SWIFT code, or a Bank Identifier Code (BIC), is a unique alphanumeric code that helps identify the financial institution to which you are sending money in international transactions. It ensures the money reaches the right destination and delivers the funds securely between financial institutions.
How do SWIFT codes work?
Every SWIFT code follows a standard format that financial institutions use to process international payments securely. A SWIFT code has 8 or 11 characters, which provide details about the financial institution and its location. This is the structure of a SWIFT code:
- Bank Code (4 letters): Helps identify the bank and is a short version of the bank’s name
- Country code (2 letters): Specifies the country where the bank is registered.
- Location code (2 characters: letters or numbers): Indicates the location of the bank’s headquarters.
- Branch code (3 characters): This represents a specific branch. If this isn’t included, the SWIFT code is directed to the bank’s head office.
Where can you find the financial institution’s SWIFT code?
- Official Financial Institutions’ Website:
Almost every financial institution provides its SWIFT code on its website. You will typically find this code under the FAQ, international banking, or wire transfer instructions section of the website. You can also search for [insert the name of your financial institution] SWIFT code; this is the easiest and fastest way to spot your financial institution’s SWIFT code.
- Bank Statement & Online Banking:
Every financial institution prints its SWIFT/BIC code on your account statement (both digital and paper); you can view it there. You can also check it under the international transfer section of your financial institution’s online banking platform.
- SWIFT’s Official Lookup Tool:
If you aren’t able to find the code on the financial institution’s website or any of your documents, then you have the option to use an online SWIFT code checker. You only need to enter the name of your financial institution, country, and location. The tool will also provide you with the correct SWIFT code.
- Contact Your Financial Institution Directly:
If you don’t know if the SWIFT code you received is correct, you can contact your financial institution directly. This will ensure that you have the right code when you make international payments.
When do you use a SWIFT/BIC code?
SWIFT codes are generally used to make international payments, as mentioned before. The following is a list of situations where you could use a SWIFT code:
- Sending Money Abroad:
If you are sending money abroad, then your financial institution will request the SWIFT code of the recipient’s financial institution. If you do not provide the right code, the money transfer will either be delayed or rejected altogether. Before you make any international payments, ensure you have the following information:
- The recipient’s full name and financial institution details
- The recipient’s SWIFT/BIC code
- Any other financial institution code as per the country
- Receiving Money From Abroad:
If a client is transferring money into your account, then they will require your financial institution’s SWIFT code in order to do so. The following is the list of information that you need to send to the sender:
- Your financial institution’s SWIFT/BIC code
- Your full name and account number
- Any other additional details based on your financial institution’s requirements
How long does a SWIFT transfer take?
A SWIFT code transfer typically takes about 3 to 5 business days to transfer the money, depending upon the finances involved, the destination country, and whether any intermediary banks are required.
The following steps take place before the money reaches the receiver’s financial institution:
- The sender’s financial institution processes and sends the payment via the SWIFT network.
- Intermediary banks (if any are involved) review and process the transfer.
- The recipient’s financial institution verifies and deposits the funds into the account of the receiver.
In conclusion, a SWIFT code is an 8 to 11-digit code that is used to make international payments. This code includes the bank code, country code, location code, and branch code. You will find this code on your banking documents or on your financial institution’s website. You can also use a SWIFT code checker to find your financial institution’s SWIFT code. You use it to send and receive money from your clients abroad.
