What is a BIC code?
A SWIFT code - or SWIFT number is a standard format to uniquely identify all banks and financial institutions globally. SWIFT codes are a standard format for BIC - Business Identifier Codes.
If you transfer money across international lines you almost always need to use a SWIFT code, as it’s the way banks, financial institutions and money transfer services figure out where the money needs to go. You can think of a SWIFT code a bit like an international postal code. Your bank can use the SWIFT/BIC code to find another bank on the opposite side of the world. Like sending post to the wrong ZIP code means it could get lost, the same thing can apply for your money and the wrong SWIFT code.
What does a SWIFT/BIC look like?
A SWIFT code can be either 8 or 11 characters long:
AAAA BB CC DDD
- AAAA: 4 character bank code.Just letters, no numbers.
- BB: 2 character country code. ISO alpha-2 country code.
- CC: 2 character location code.
- DDD: 3 character branch code. This is optional and can be letters or digits. An XXX here would refer to the primary office.
More info about SWIFT/BIC codes
There are 2 types of SWIFT code: live and passive. Live codes are for institutions who are actively connected to the SWIFT network while passive Codes are used for manual transactions. Passive SWIFT codes will have a 1 as the second digit of the 2 character location code.
SWIFT code registrations and management are the responsibility of "Society for Worldwide Interbank Financial Telecommunication" (“SWIFT”) which is located in La Hulpe, Belgium.
SWIFT is the registered trademark of S.W.I.F.T. SCRL with a registered address at Avenue Adèle 1, B-1310 La Hulpe, Belgium.