How to Use a SWIFT Code to Transfer Money

International money transfers are a common necessity in today’s interconnected financial landscape. Whether supporting family abroad, conducting business with international partners, or managing global investments, efficiently moving funds across borders is crucial. SWIFT codes serve as a foundational element in facilitating these cross-border transactions, enabling secure and standardized communication between financial institutions worldwide. Understanding how to leverage these codes streamlines the process and helps ensure funds reach their intended destination.

Understanding SWIFT Codes

A SWIFT code, also known as a Bank Identifier Code (BIC), is a standardized format approved by the International Organization for Standardization (ISO). Its purpose is to identify specific banks and branches globally, routing international money transfers correctly. This unique code acts like an international address for financial institutions, ensuring funds are directed to the precise bank.

SWIFT/BIC codes typically consist of 8 or 11 alphanumeric characters. An 8-character code identifies the bank and its country, while an 11-character code specifies a particular branch. This structure includes the bank code (four letters), country code (two letters), location code (two alphanumeric characters), and an optional branch code (three alphanumeric characters). SWIFT codes are necessary for cross-border transfers, providing a universally recognized system to prevent misdirection and delays.

Information Needed for an International Transfer

Before initiating an international money transfer using a SWIFT code, gathering all necessary details is a crucial preparatory step. Accuracy in this information helps prevent delays, rejections, or even loss of funds.

The following details are required:
The beneficiary’s full name and complete address, including street, city, postal code, and country.
The beneficiary’s bank’s full name and physical address.
The beneficiary’s bank’s SWIFT/BIC code, which can be obtained directly from the beneficiary, their bank’s official website, or through a SWIFT code lookup tool.
The beneficiary’s bank account number. For transfers to European countries, this often means an International Bank Account Number (IBAN). For other regions, a standard account number is typically used, while some countries may require specific identifiers like Canada’s Transit Code or Mexico’s CLABE.
The exact transfer amount and the currency in which the funds should be received.
The purpose of the transfer, such as a family remittance or payment for goods, which is often necessary for regulatory compliance and anti-money laundering (AML) checks.

If you are expecting to receive an international transfer, provide your own bank’s SWIFT code along with your account details to the sender.

Initiating Your SWIFT Transfer

Once all the necessary information has been gathered, the SWIFT transfer can begin. Most financial institutions offer several convenient methods for sending international funds. Online banking platforms and mobile applications provide a streamlined approach, allowing you to log in securely using your credentials. After navigating to the international transfer or wire transfer section, you will input the beneficiary’s details, including their bank’s SWIFT code and account number.

During the online submission process, you will be prompted to review all entered information carefully before confirming the transaction. Many banks implement security measures, such as two-factor authentication, to verify your identity before the transfer is finalized. Alternatively, you can visit a physical bank branch to initiate the transfer. A bank teller will assist you in completing the required forms, where you will provide all the collected beneficiary and bank information. Regardless of the method, ensure all details are precisely entered to facilitate a smooth transfer.

Tracking and Confirmation

After a SWIFT transfer is initiated, understanding typical processing times and how to track the transaction is helpful. Most international SWIFT transfers generally take between one to five business days to process and arrive, though some may be quicker, often within 24 hours depending on destination and intervening banks. Factors such as time zone differences, public holidays, and intermediary banks can influence the exact delivery timeframe.

Many banks provide a tracking number or reference number for your international transfer, which can be used to monitor its status through online portals or customer service. You can expect a confirmation from your bank once the transfer has been successfully sent, often via email or an update in your transaction history. If a transfer is delayed beyond the expected timeframe or if issues arise, contacting your bank’s customer service with the transaction reference number is the recommended next step.