What are SWIFT and BIC codes ?

 SWIFT and BIC codes are used to identify banks and financial institutions in international transactions.

1. SWIFT Code: SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication. A SWIFT code (also known as a SWIFT/BIC code) is a standardized format of Business Identifier Codes (BIC). It's used to identify banks and financial institutions globally, facilitating secure and accurate international money transfers. The code typically consists of 8 to 11 characters:

   • 4 letters: Bank code
   • 2 letters: Country code
   • 2 letters: Location code
   • 3 letters (optional): Branch code

   For example, the SWIFT code for the Bank of America is BOFAUS3N.

2. BIC Code: BIC stands for Business Identifier Code. It's essentially the same as a SWIFT code and used interchangeably. The term BIC is more common in Europe, while SWIFT is more commonly used globally.

In short, both SWIFT and BIC codes help in identifying the specific bank involved in an international transaction, ensuring that the money is sent to the correct financial institution.