A SWIFT code, also commonly known as a BIC Code, is a standard format to uniquely identify all banks and financial institutions across the world. The SWIFT code is a standard format for Business Identifier Codes (BIC).
If you transmit money across international lines you nearly 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 other side of the world. Just like sending mail to an incorrect ZIP/postal code means it could get lost or returned, the same applies for your money and an incorrect SWIFT code.
A BIC/SWIFT code can be either 8 or 11 characters long:
AAAA BB CC DDD
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.