ISO 9362

ISO 9362 defines a standard format of Business Identifier Codes (also known as SWIFT-BIC, BIC, SWIFT ID or SWIFT code) approved by the International Organization for Standardization (ISO). It is a unique identification code for both financial and non-financial institutions.[1] The acronym SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication. The ISO has designated SWIFT as the BIC registration authority.[2] When assigned to a non-financial institution, the code may also be known as a Business Entity Identifier or BEI. These codes are used when transferring money between banks, particularly for international wire transfers, and also for the exchange of other messages between banks. The codes can sometimes be found on account statements.

The overlapping issue between ISO 9362 and ISO 13616 is discussed in the article International Bank Account Number (also called IBAN). The SWIFT network does not require a specific format for the transaction so the identification of accounts and transaction types is left to agreements of the transaction partners. In the process of the Single Euro Payments Area the European central banks have agreed on a common format based on IBAN and BIC including an XML-based transmission format for standardized transactions; the TARGET2 is a joint gross clearing system in the European Union that does not require the SWIFT network for transmission (see EBICS). The TARGET-directory lists all the BICs of the banks that are attached to the TARGET2-network being a subset of the SWIFT-directory of BICs.[3]

Structure

The previous edition is ISO 9362:2009 (dated 2009-10-01). The SWIFT code is 8 or 11 characters, made up of:

  • 4 letters: institution code or bank code.
  • 2 letters: ISO 3166-1 alpha-2 country code (exceptionally, SWIFT has assigned the code XK to Republic of Kosovo, which does not have an ISO 3166-1 country code)
  • 2 letters or digits: location code
    • if the second character is "0", then it is typically a test BIC as opposed to a BIC used on the live network.
    • if the second character is "1", then it denotes a passive participant in the SWIFT network
    • if the second character is "2", then it typically indicates a reverse billing BIC, where the recipient pays for the message as opposed to the more usual mode whereby the sender pays for the message.
  • 3 letters or digits: branch code, optional ('XXX' for primary office)

Where an eight digit code is given, it may be assumed that it refers to the primary office.

SWIFT Standards, a division of The Society for Worldwide Interbank Financial Telecommunication (SWIFT), handles the registration of these codes. Because SWIFT originally introduced what was later standardized as Business Identifier Codes (BICs), they are still often called SWIFT addresses or codes.

The 2009 update of ISO 9362 broadened the scope to include non-financial institutions; before then BIC was commonly understood to be an acronym for Bank Identifier Code.

There are over 7,500 "live" codes (for partners actively connected to the BIC network) and an estimated 10,000 additional BIC codes which can be used for manual transactions.

2009 version is now replaced by the latest edition (ISO 9362:2014 dated 2014-12-01).[4]

Examples

Deutsche Bank is an international bank, with its head office in Frankfurt, Germany. The SWIFT code for its primary office is DEUTDEFF:

  • DEUT identifies Deutsche Bank
  • DE is the country code for Germany
  • FF is the code for Frankfurt

Deutsche Bank uses an extended code of 11 characters and has assigned branches or processing areas individual extended codes. This allows the payment to be directed to a specific office. For example, DEUTDEFF500 would direct the payment to an office of Deutsche Bank in Bad Homburg.

Nedbank is a primarily South African bank, with its head office in Johannesburg. The SWIFT code for its primary office is NEDSZAJJ:

  • NEDS identifies Nedbank
  • ZA is the country code for South Africa
  • JJ is the code for Johannesburg

Nedbank has not implemented the extended code of 11 characters and all SWIFT transfers to its accounts are directed to the primary office for processing. Those transfer interfaces that require an 11 digit code would enter NEDSZAJJXXX.

Danske Bank is a primarily Danish bank, with its head office in Copenhagen. The SWIFT code for its primary office is DABADKKK:

  • DABA identifies Danske Bank
  • DK is the country code for Denmark
  • KK is the code for Copenhagen.

UniCredit Banca is a primarily Italian bank with its head office in Milan. The SWIFT code for its primary office is UNCRITMM:

  • UNCR identifies Unicredit Banca
  • IT is the country code for Italy
  • MM is the code for Milan.

Dah Sing Bank is a bank based in Hong Kong that has five branches in mainland China (primary mainland China branch in Shenzhen). The SWIFT code for the branch in Shanghai is DSBACNBXSHA.

  • DSBA identifies Dah Sing Bank
  • CN is the country code for China
  • BXSHA is the code for Shanghai.

It uses the 11-digit extended code, and SHA identifies the Shanghai branch.

BDO Unibank is the biggest bank in the Philippines, with its head office in Makati. The SWIFT Code for BDO is BNORPHMM. All BDO branches have the same SWIFT Code.

  • BNOR identifies BDO Unibank
  • PH is the country code for the Philippines
  • MM is the code for Metro Manila of which Makati is a part.

Note that one bank can seem to have more than one bank identifier in a given country for separation purposes. Bank of East Asia separates its representative branch in the US and its US-based operations for local customers into BEASUS33xxx (following the code used in its home country) and BEAKUS33xxx respectively. This differs from its local mainland China operations which are also BEASCNxxxxx following Hong Kong rather than having a separate identifier code.

  • An example of this is Bank of America in the United States. For US Dollar denominated wires, its SWIFT code is BOFAUS3N. The SWIFT code for wires sent in foreign currency (non-U.S. dollars) to Bank of America in the United States is BOFAUS6S.

In the past, SEPA payments required both BIC and IBAN. Since 2016-02-01 only the IBAN is needed inside the SEPA (European Union and some more countries).

In Sri Lanka Swift codes consist of 8-11 digits. This example is a swift code for Sampath Bank: BSAMLKLXXXX

  • 'BSAM'- Is the bank code for Sampath Bank
  • 'LK' Is Sri Lanka's country code
  • 'LX' is the banks location code.
  • 'XXX' is the bank's branch code. Because the bank clears its transactions from a central location in Colombo, the letters XXX mean centralised clearing.

Twelve-character SWIFTNet FIN address based on BIC

To identify endpoints on its network, SWIFT also uses twelve-character codes that are derived from the BIC of the institution. Such a code consists of the 'BIC8', followed by a one-character code that identifies the Logic Terminal (LT), (also referred to as "local destination" or "Logic Terminal address"), and the three-character branch code. While 'BIC12's are not part of the ISO standard, and are only relevant in the context of the messaging platform, they play a role in FIN system messaging. According to SWIFT, Logic Terminals are the "entity through which users send and receive FIN messages.", thus, may play a role within routing of the message.


- To see a breakdown within a SWIFT header using a Logic Terminal:

https://docs.microsoft.com/en-us/biztalk/adapters-and-accelerators/accelerator-swift/swift-headers


- For more information on use of LT's, see the following:

http://www.swiftfinguru.com/2017/02/fin-logical-terminals.html

Usage

Business Identifier Codes are primarily used for identifying financial and non-financial institutions involving day-to-day business transactions among one or more institutions in transaction lifecycle.

Example: In SWIFT messages these BICs are embedded within the messages. Let's consider message type for cash transfer MT103, here we can find BIC under different tags like 50a (ordering customer), 56a (intermediary), 57a (account with institution), etc.

See also

References

  1. ^ "SWIFT - SwiftRef Factsheet BICPlus, June 2017" (PDF). swift.com.
  2. ^ http://www.swift.com/products_services/bic_and_iban_format_registration_bic_overview?rdct=t
  3. ^ "Deutsche Bundesbank - Unbarer Zahlungsverkehr" (in German). Bundesbank.de. 2013-01-15. Archived from the original on 2012-05-08. Retrieved 2013-02-01.
  4. ^ https://www.iso.org/obp/ui/#iso:std:iso:9362:ed-4:v1:en

External links

BEI

BEI or B.E.I. may refer to :

Binary ethylenimine, an inactivant used in the inactivation of the foot-and-mouth disease virus

Business Entity Identifier, an ISO 9362 Bank Identifier Code (BIC) assigned to a non-financial entity.

Balanced Ecology, Inc.

Board for Evaluation of Interpreters, a board in the Texas Department of Assistive and Rehabilitative Services (DARS) awarding and maintaining certification of sign language interpreters in the State of Texas

Bursa Efek Indonesia, Indonesia Stock Exchange

BIC code

BIC or BIC code can refer to:

ISO 6346 – shipping container owner code, defined by the Bureau International des Containers (BIC)

ISO 9362 – business identifier code for banks and other institutions, defined by SWIFT

Bank account

A bank account is a financial account maintained by a bank for a customer. A bank account can be a deposit account, a credit card account, a current account, or any other type of account offered by a financial institution, and represents the funds that a customer has entrusted to the financial institution and from which the customer can make withdrawals. Alternatively, accounts may be loan accounts in which case the customer owes money to the financial institution.

The financial transactions which have occurred within a given period of time on a bank account are reported to the customer on a bank statement and the balance of the accounts at any point in time is the financial position of the customer with the institution.

The laws of each and every country specify the manner in which accounts may be opened and operated. They may specify, for example, who may open an account, how the signatories can identify themselves, deposit and withdrawal limits and many other matters.

Bank code

A bank code is a code assigned by a central bank, a bank supervisory body or a Bankers Association in a country to all its licensed member banks or financial institutions. The rules vary to a great extent between the countries. Also the name of bank codes varies. In some countries the bank codes can be viewed over the internet, but mostly in the local language.

The (national) bank codes differ from the international Bank Identifier Code (BIC/ISO 9362, a normalized code - also known as Business Identifier Code, Bank International Code and SWIFT code). Those countries which use International Bank Account Numbers (IBAN) have mostly integrated the bank code into the prefix of specifying IBAN account numbers. The bank codes also differ from the Bank card code (CSC).

The term "bank code" is sometimes (inappropriately) used by merchants to refer to the Card Security Code printed on a credit card.

Cross-Border Inter-Bank Payments System

The Cross-Border Interbank Payment System (CIPS) is a payment system which, offers clearing and settlement services for its participants in cross-border RMB payments and trade. It is a significant financial market infrastructure in China. As planned, CIPS will be developed in two phases. On 8 October 2015, CIPS (Phase I) went live. The first batch of direct participants includes 19 Chinese and foreign banks which were set up in mainland China and 176 indirect participants which cover 6 continents and 47 countries and regions. On 25 March 2016, CIPS signed an MoU with SWIFT with mutual understanding of deploying SWIFT as a secure, efficient and reliable communication channel for CIPS's connection with SWIFT's members, which would provide a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardised and reliable environment. CIPS is sometimes referred to as the China Interbank Payment System.

CIPS would not facilitate funds transfer; rather, it sends payment orders, which must be settled by correspondent accounts that the institutions have with each other. Each financial institution, to exchange banking transactions, must have a banking relationship by either being a bank or affiliating itself with one (or more) so as to enjoy those particular business features.

However, it was reported in July 2015 that CIPS would be '"watered down" and used only for cross-border yuan trade deals rather than including capital-related transactions, which would delay billions of dollars' worth of transactions, including securities purchases and foreign direct investment, that would have gone through the system. It was reported to be a second setback to the plan to provide a unified network for settling deals in yuan after technical problems delayed its launch, and that other measures to open up China's financial infrastructure have been dented by the 2015 Chinese stock market crash. It was said to now offer, at best, a complementary network for settling trade-related deals in the Chinese currency to a current patchwork of Chinese clearing banks around the world.

International Bank Account Number

The International Bank Account Number (IBAN) is an internationally agreed system of identifying bank accounts across national borders to facilitate the communication and processing of cross border transactions with a reduced risk of transcription errors. It was originally adopted by the European Committee for Banking Standards (ECBS), and later as an international standard under ISO 13616:1997. The current standard is ISO 13616:2007, which indicates SWIFT as the formal registrar. Initially developed to facilitate payments within the European Union, it has been implemented by most European countries and numerous countries in the other parts of the world, mainly in the Middle East and in the Caribbean. As of February 2016, 69 countries were using the IBAN numbering system.The IBAN consists of up to 34 alphanumeric characters comprising: a country code; two check digits; and a number that includes the domestic bank account number, branch identifier, and potential routing information. The check digits enable a check of the bank account number to confirm its integrity before submitting a transaction.

International Securities Identification Number

An International Securities Identification Number (ISIN) uniquely identifies a security. Its structure is defined in ISO 6166. The ISIN code is a 12-character alphanumeric code that serves for uniform identification of a security through normalization of the assigned National Number, where one exists, at trading and settlement.

International Standard Audiovisual Number

International Standard Audiovisual Number (ISAN) is a unique identifier for audiovisual works and related versions, similar to ISBN for books. It was developed within an ISO (International Organisation for Standardisation) TC46/SC9 working group. ISAN is managed and run by ISAN-IA.

International Standard Music Number

The International Standard Music Number or ISMN (ISO 10957) is a thirteen-character alphanumeric identifier for printed music developed by ISO.

International Standard Musical Work Code

International Standard Musical Work Code (ISWC) is a unique identifier for musical works, similar to ISBN for books. It is adopted as international standard ISO 15707. The ISO subcommittee with responsibility for the standard is TC 46/SC 9.

International Standard Recording Code

The International Standard Recording Code (ISRC) is an international standard code for uniquely identifying sound recordings and music video recordings. The code was developed by the recording industry in conjunction with the ISO technical committee 46, subcommittee 9 (TC 46/SC 9), which codified the standard as ISO 3901 in 1986, and updated it in 2001.

An ISRC identifies a particular recording, not the work (composition and lyrical content) itself. Therefore, different recordings, edits, and remixes of the same work should each have their own ISRC. Works are identified by ISWC. Recordings remastered without significant audio-quality changes should retain their existing ISRC, but the threshold is left to the discretion of the record company.

International Standard Text Code

The International Standard Text Code (ISTC) is a unique identifier for text-based works. The ISO standard was developed by TC 46/SC 9 and published in March 2009 as ISO 21047:2009. The authority responsible for implementing the standard is The International ISTC Agency.

International identifier

An international identifier is a number of different size which comes above or beside the national identification number and helps to identify a company over several countries in the world.

Japan Trustee Services Bank

Japan Trustee Services Bank, Ltd. (日本トラスティ・サービス信託銀行株式会社, Nippon Torasuti Sābisu Shintaku Ginkō Kabushiki-gaisha), or JTSB, is a trust bank in Japan.

JTSB is a joint venture between Resona Bank and Sumitomo Mitsui Trust Holdings, and acts as a subcontracted trustee for both banks to hold their customers' assets, which include pension fund and investment trust assets. Its main competitors are The Master Trust Bank of Japan (controlled by Mitsubishi UFJ Financial Group and Nippon Life Insurance) and Trust & Custody Services Bank (controlled by Mizuho Financial Group).

JTSB's SWIFT (ISO 9362) code is JTSBJPJT.

Legal Entity Identifier

A Legal Entity Identifier (or LEI) is an international identifier made up of a 20-character identifier that identifies distinct legal entities that engage in financial transactions. It is defined by ISO 17442. Natural persons are not required to have an LEI; they’re eligible to have one issued, however, but only if they act in an independent business capacity. The LEI is a global standard, designed to be non-proprietary data that is freely accessible to all. As of December 2018, over 1,300,000 legal entities from more than 200 countries have now been issued with LEIs.

Payment card number

A payment card number, primary account number (PAN), or simply a card number, is the card identifier found on payment cards, such as credit cards and debit cards, as well as stored-value cards, gift cards and other similar cards. In some situations the card number is referred to as a bank card number. The card number is primarily a card identifier and does not directly identify the bank account number/s to which the card is/are linked by the issuing entity. The card number prefix identifies the issuer of the card, and the digits that follow are used by the issuing entity to identify the cardholder as a customer and which is then associated by the issuing entity with the customer's designated bank accounts. In the case of stored-value type cards, the association with a particular customer is only made if the prepaid card is reloadable. Card numbers are allocated in accordance with ISO/IEC 7812. The card number is usually prominently embossed on the front of a payment card, and is encoded on the magnetic stripe and chip, but may be imprinted on the back of the card.

The payment card number differs from the Business Identifier Code (BIC/ISO 9362, a normalized code—also known as Business Identifier Code, Bank International Code or SWIFT code). It also differs from Universal Payment Identification Code, another identifier for a bank account in the United States.

Society for Worldwide Interbank Financial Telecommunication

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized and reliable environment. SWIFT also sells software and services to financial institutions, much of it for use on the SWIFTNet network, and ISO 9362. Business Identifier Codes (BICs, previously Bank Identifier Codes) are popularly known as "SWIFT codes".

The majority of international interbank messages use the SWIFT network. As of 2015, SWIFT linked more than 11,000 financial institutions in more than 200 countries and territories, who were exchanging an average of over 15 million messages per day (compared to an average of 2.4 million daily messages in 1995). SWIFT transports financial messages in a highly secure way but does not hold accounts for its members and does not perform any form of clearing or settlement.

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. Each financial institution, to exchange banking transactions, must have a banking relationship by either being a bank or affiliating itself with one (or more) so as to enjoy those particular business features.

SWIFT is a cooperative society under Belgian law owned by its member financial institutions with offices around the world. SWIFT headquarters, designed by Ricardo Bofill Taller de Arquitectura are in La Hulpe, Belgium, near Brussels. The chairman of SWIFT is Yawar Shah, originally from Pakistan, and its CEO is Gottfried Leibbrandt, originally from the Netherlands. SWIFT hosts an annual conference, called Sibos, specifically aimed at the financial services industry.

ISO standards by standard number
1–9999
10000–19999
20000+
Bank codes and identification
North America
Europe
Oceania
International

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