What Do SWIFT, IBAN, BSB, etc. Mean in Overseas Remittances?

When preparing for immigration, overseas education, cross-border trade, or launching overseas business lines, it is necessary to have cross-border remittance needs. However, when making remittances, why do we need to fill in SWIFT? Sometimes we also need to fill in IBAN/BSB/ABA/FedWire/Sort Code. This article will answer these questions for you.

Different countries and regions have different transaction systems they adhere to, so when remitting to different parts of the world, designated identification codes need to be provided. For example, IBAN needs to be provided for remittances to Europe; FedWire needs to be provided for remittances to the United States; Sort Code needs to be provided when remitting pounds to the UK; and SWIFT Code has become almost a necessary code for remittances because it has been widely used worldwide.

I. Essential identification code for international remittance: SWIFT Code

SWIFT is the abbreviation for the Society for Worldwide Interbank Financial Telecommunication. It provides a widely used international numbering system, which allows banks and financial institutions worldwide to have their own exclusive SWIFT Code (also known as BIC Bank Identification Code) for international financial transactions and to identify specific banks. In simple terms, SWIFT is an international bank code commonly used for international remittances.

The SWIFT Code consists of 8 or 11 characters and can be divided into four parts, used to identify the bank, country, location, and branch. The first four characters are the abbreviation of the receiving bank, the fifth and sixth characters represent the country, and the seventh to eleventh characters represent the regional identification code. For example, BKCHCNBJ400 represents the SWIFT Code for Bank of China, China, Guangdong Province. BKCHCNBJ400 is the SWIFT Code for the Guangdong Branch of Bank of China.

II. Identification codes used in receiving regions

1. IBAN: Applicable for remittances to Europe

IBAN stands for International Bank Account Number. It is also an international numbering system used to identify bank accounts related to cross-border transactions. Unlike the SWIFT Code, which is used to identify banks, the IBAN can identify specific accounts within banks and is commonly used in international transactions related to the European Union or Europe. The IBAN number can be up to 34 characters long. If an IBAN account is not used in the Eurozone, additional fees for manual intervention may be charged.

2. Sort Code: Applicable for remitting pounds to the UK

Sort Code, also known as SC, is usually required when remitting to the UK. In addition to providing the IBAN number, if remitting pounds to the UK, Sort Code needs to be provided so that the clearing bank can transfer the funds to the correct UK bank account. Sort Code can usually be found by logging into the bank account or referring to the bank statement.

3. FedWire: Applicable for remittances to the US

FedWire is an electronic funds transfer system developed by the Federal Reserve Bank (FED) of the United States, providing transfer and clearing services for domestic and foreign remittances to the United States. The FedWire Number (also known as ABA Number/Routing Number) can be used to identify different banks or financial institutions in the United States for local transfers or international remittances. It consists of 9 digits (8 content digits + 1 check digit) and is mainly used in the United States and North America.

4. BSB Number: Applicable for remitting AUD/NZD to Australia

BSB Number is a clearing network code used in Australia, among other places, and stands for Bank State Branch Number. It is mainly used in Australian dollar or New Zealand dollar banks and for settlement in Australia. It is generally a 6-digit number.

5. Transit Number: Applicable for remitting CAD to Canada

Transit Number, also known as CC, is a 9-digit number (4-digit bank number + 5-digit branch number) used when remitting CAD to Canada.

Summary

Filling in the correct receiving bank SWIFT and clearing code is crucial for remittance business, as it can greatly enhance efficiency. Many times, when using traditional bank remittance, the information to be filled in is too complicated, and any slight mistake can lead to unsuccessful remittance and result in the loss of fees and your precious time.

Using iFAST Global Bank is much simpler! iFAST Global Bank can remit funds to any country or region in the world. You only need to select the corresponding region and currency in the iFAST Global Bank system, fill in the recipient's information, and the process can be completed easily. It is fast, with the fastest completion time being 2 minutes. To learn more, visit the official website of iFAST Global Bank at www.ifastgb.com!