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What is SWIFT?

 

What is SWIFT?

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is a secure network for transmitting messages related to interbank financial transactions, based in Brussels. In the realm of safe and fast financial transactions, SWIFT is a messaging network method primarily used for the delivery and controlled transmission of messages through signaling codes or predetermined codes.

 

Established in 1973 in Brussels, Belgium, by its founder Carl Reuterskiöld, SWIFT is utilized by global banks and financial institutions for conducting financial transactions. It is highly popular and reliable as a means for information exchange in financial transactions. SWIFT is considered a secure network for the exchange of information in financial transactions.

 

The inception of SWIFT was initiated by American and European banks who anticipated the creation of a unified system by a specific institution to facilitate international transactions through their own established infrastructure. SWIFT primarily functions as an interbank messaging system that immediately informs customers about any transactions. Therefore, the majority of banks worldwide utilize the SWIFT network for the exchange of interbank messages and the execution of transactions.

 

The National Bank of Belgium collaborates closely with major central banks worldwide, including the Federal Reserve in the United States and the Bank of England, to oversee SWIFT's operations. The organization has a skilled management council for efficient management, with the Chief Executive Officer (CEO) leading the Board of Directors.

 

SWIFT's operations are managed through three data centers located in the United States, the Netherlands, and Switzerland, which exchange information internally. The transmission of SWIFT information utilizes submarine cable communication infrastructure. When one data center fails to transmit information, another center manages the complete network traffic. Currently, SWIFT has around 2000 employees.