What is a BIC code?
A SWIFT code - or SWIFT number is a standard format to uniquely identify banks and financial institutions globally. SWIFT codes are a standard format for BIC - Business Identifier Codes.
If you transmit money across international lines you almost always need to use a BIC code, as it’s the way banks, financial institutions and money transfer services identify where to send money on a global scale. You can think of a BIC code a bit like an international postal code. Your bank can use the SWIFT code to find another bank on the opposite side of the world. Similar to how sending a postcard to an incorrect ZIP/postal code means it could get lost or returned, the same applies for your money and an incorrect SWIFT code.
What does a SWIFT look like?
A SWIFT/BIC code can be either 8 or 11 characters long:
AAAA BB CC DDD
- AAAA: 4 character bank code.This section can only be A-Z letters.
- 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 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.