Defining "IBAN", "BIC", and "Swift Codes"

IBAN (International Bank Account Number) is the international bank account number you use when making or receiving an interbank payment.

The IBAN contains the following components:

  • Country code - 2 letters. The first two letters represent the country where your bank is located.
  • Check digits - 2 digits. The next two digits are the check digits.
  • Bank code - 4 characters.
  • Bank account number - 16 digits.

The BIC (Bank Identifier Code) is an international standard for identifying banks. It is also known as the SWIFT code (Society for Worldwide Interbank Financial Telecommunication). The BIC/SWIFT code is used for international bank transfers, especially when money needs to be sent from one country to another.

The BIC/SWIFT (Society for Worldwide Interbank Financial Telecommunication) code consists of 8 to 11 characters and includes the following information:

  • Bank Code (4 characters): This identifies the bank or financial institution.
  • Country Code (2 characters): This represents the country in which the bank is located.
  • Locality Code (2 characters): This identifies the specific branch or location of the bank.
  • Branch Code (3 characters): This is an optional code that identifies a specific branch or location of the bank.

Together, the BIC/SWIFT code helps ensure that international transactions are accurately routed to the correct bank and branch. It is essential to provide the correct BIC/SWIFT code when sending or receiving payments.

 

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