The usage of Internet in order to avail the services offered by the banks is the reality now. The most horrifying news that one can spot all over the news channels, be it the World News or the National News, it is that the cybercrimes that squander a lot of people’s money. This is done by the specialized hackers. Most of the crimes are occurring in the arena of International Banking where certain specific technologies are used as the trade currency is the one from where the product is being imported. For instance, a person in India is buying goods from USA, the payment has to be made in Dollars and that amount of equivalent currency is deducted from the person’s account.
SWIFT in International Banking
This is a commonly circulating term in the news channels owing to the billions of money that has been cheated from the banks. The hackers too use this very system to hack into the network and steal money. Thus, knowledge about this system is highly recommendable.
- SWIFT stands for Society for Worldwide Interbank Financial Telecommunication code.
- This is an internationally recognized identification code for all banks around the world.
- SWIFT codes are most commonly used for international wire transfers comprised of 8 or 11 alphanumeric characters.
- The International authoritative body that approves SWIFT codes is International Organization for Standardization (ISO).
- The SWIFT code is also known as ISO9362, SWIFT-BIC, and BIC Code, SWIFT ID or SWIFT code.
- These codes are used when transferring money between banks, particularly for international wire transfers, and also for the exchange of other messages between banks. Now banks have started to use these codes in their respective bank Statements as well.
- SWIFT is an automated system, which helps in ensuring error-free identification of parties involved.
- So, a system was developed popularly known as Bank Identifier Code (BIC).
- The BIC is a unique address, which in telecommunication messages, identifies precisely the financial institutions involved in financial transactions.
- There are four key areas that SWIFT services fall under within the financial marketplace under the Head Securities, Treasury & Derivatives. Trade Services and Payments & Cash Management.
The complete architecture has enabled the worldwide electronic payment system under complete security and scrutiny.
Thus, one has to have an idea of the architecture that is behind the transactions that one could identify the flaws and prevent the hackers from stealing your hard-earned money.