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A Bank Identifier Code (BIC) is a standardized code used to identify a specific bank for international bank transfers and financial communications. BICs are administered by the Society for Worldwide Interbank Financial Telecommunication (SWIFT) and are designed to reduce confusion and errors in bank communications. The code consists of letters that refer to the bank, a country code, and a specific location code, with optional branch codes. It is recommended to obtain the BIC directly from the recipient for international transfers.
A Bank Identifier Code (BIC) is a unique, standardized code used to identify a specific bank. Such codes are used for bank transfers, especially internationally, and for financial communications between banks. Some banks list their codes on account statements so people can easily access them, and it’s also possible to ask bank officials for the code if it’s needed for something like a wire transfer.
BICs are administered by the Society for Worldwide Interbank Financial Telecommunication (SWIFT). They are also sometimes known as SWIFT codes, and the terms SWIFT-BIC or ISO 9362 can also be used to describe a bank identification code. “ISO 9362” refers to the International Organization for Standardization, which designed the standardized format for bank identification codes to ensure international consistency.
The first four characters of a bank identification code are letters that refer to the bank. The next two characters, also letters, are a country code indicating where the bank is located, and the next two characters cite a specific location. Three optional characters can be added as a branch code, in case a transmission is not sent to the bank’s headquarters. Location and branch codes can be alphanumeric.
The standardization of bank codes with the use of ISO 9362 achieved several important objectives. The first was that there was a uniform system, which greatly reduced confusion and ensured that banks could send communications easily and securely. Using a bank identification code also reduces errors, because the code is designed to be logical, making it easy to catch transcription errors and other problems. Standardization also reduces the risk of conflicting codes, making it more certain that communications will end up where they’re supposed to be, and not at another bank by accident.
When sending money internationally from one bank to another, people generally need a bank identification code for the transaction, along with specific account information for the recipient. Some banks are willing to look up this information for their customers when making transfers, although bank employees may warn customers that if they do not have the correct bank name and location, the money may end up in the wrong location. For this reason, people are generally advised to obtain the bank identification code, account number, routing number, and other information necessary for a bank transfer directly from the recipient.
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