SWIFT for Electronic Funds Transfers
Need to transfer money overseas? Today, it is easy to walk into a bank and transfer money anywhere around the globe, but how does this happen?
Behind most international money and security transfers is the Society for Worldwide Interbank Financial Telecommunications (SWIFT) system.
SWIFT is a vast messaging network banks and other financial institutions use to quickly, accurately, and securely send and receive information, such as money transfer instructions.
Inside a SWIFT Transaction
SWIFT is a messaging network that financial institutions use to securely transmit information and instructions through a standardized system of codes.
Although SWIFT has become a crucial part of global financial infrastructure, it is not a financial institution itself: SWIFT does not hold or transfer assets. Rather, its utility lies in its power to facilitate secure, efficient communication between member institutions.
Let’s assume a Bank of America (BAC) branch customer in New York wants to send money to their friend who banks at the UniCredit Banca branch in Venice. The New York customer can walk into their Bank of America branch with their friend’s account number and UniCredit Banca’s unique SWIFT code for its Venice branch.
Bank of America will send a payment transfer SWIFT message to the UniCredit Banca branch over the secure SWIFT network. When Unicredit Banca receives the SWIFT message about the incoming payment, it will clear and credit the money to the Italian friend’s account.
More Details Here : https://www.investopedia.com/articles/personal-finance/050515/how-swift-system-works.asp
