SWIFT

About:

• SWIFT stands for “Society for Worldwide Interbank Financial Telecommunication.”
  
  
• Status: SWIFT is a global member-owned cooperative society under Belgian law.
  
  
• Establishment: It was founded in 1973 by a group of 239 banks from 15 countries.
  
  
• Headquarters: La Hulpe, Belgium.
  
  
• Functions:
  • SWIFT is a secure financial message carrier. its core role is to provide a secure transmission channel so that Bank A knows that its message to Bank B goes to Bank B and no one else.
    
    
  • Apart from this, it also sells software and services to financial institutions, much of it for use on the SWIFTNet Network.
    
    
  
  
  
• What it doesn’t?
  • SWIFT does not facilitate funds transfer: rather, it sends payment orders, which must be settled by correspondent accounts that the institutions have with each other.
    
    
  • It does not hold accounts for its members.
    
    
  • It does not perform any form of clearing or settlement.
    
    
  
  
  
• Usage:
  • SWIFT is used by financial institutions like Banks, Depositories, Exchanges, Corporate Business Houses etc.
    
    
  • The majority of international interbank messages use the SWIFT network.