SWIFT

•Swati Arora
•Piyush Padgil
•Saurabh Mishra
•Varun Wadhwani
•Rohit Singh
What is SWIFT?

SWIFT stands for Society for Worldwide Interbank Financial

Telecommunication

●
An electronic messaging service spanning 209 countries
●
Message standards for the financial industry –Business language
●
SWIFT enables financial institutions to automate their data processing, thereby lowering operational risks, cutting costs and improving efficiency in their businesses

Provides the global financial community with a highly secure and reliable
network to exchange electronic financial messages.

The essential components of the SWIFT system are:

Laying the Foundation

In May 1973, 239 In May 1977, the Today, SWIFT has more
banks from 15 messaging system clicked than 9,300 users and
countries created the into life. Six months later, its network spans 209
SWIFT cooperative to membership had more countries. Customers
build a common than doubled to 518 exchange more than 15
messaging system. banks. million messages daily.
SWIFT Functioning
•Setup by 239 banks from 15
countries in 1973
•SWIFT has more than 9,300
users and its network spans
209 countries - Owners
•More than 2,300 of its 9,000
users are shareholders and are
called ‘members’. Members
vote at the annual general
meeting, elect the 25 Board
members and shape company
strategy
•The central banks of the G-10
countries and NBB oversee
SWIFT.
Who can use SWIFT

•Restricted to financial
institutions, market
infrastructures and their
corporate customers.

•Corporations may also connect

to SWIFT to exchange financial
information with their financial
institutions

•The Treasury departments of

most of the world’s Top 600
companies use SWIFT
messaging services.
Messaging services
Transaction Services
FIN : SWIFT's core store-
and-forward messaging
service. It enables the
exchange of individual
structured financial
messages in a secure and
reliable way.
InterAct Store-and-
Forward : SWIFT's core
store-and-forward messaging
service for messages in XML
format. It enables to
exchange financial data
securely, cost effectively and
reliably.
Bulk Data Exchange
FileAct : provides a cost-
effective way to exchange
bulk files in different formats
with your correspondents,
while leveraging the
unparalleled security and
reliability provided by the
SWIFTNet platform.
Mail : Mail provides the
simplicity and ease of use
of desktop e-mail with
the security, reliability
and reach .
Interactive Services
InterAct : real-time messaging
service supporting the
exchange of messages between
two parties that are both on-
line. With InterAct, institutions
and communities can exchange
messages in an automated and
interactive way.
Browse: combines the user
friendliness of web
technology with the security
features offered by
SWIFTNet. Browse enable to
browse remote web servers
using Alliance WebStation.
Tools

Reference Data Business Intelligence Distributed Architecture

SWIFT publishes a
● ●
The Watch tools provide ●
Moving to a multi-zonal messaging
with critical business architecture to strengthen the
number of reference resiliency and data protection in
data directories intelligence about global financial messaging.
financial institution and ●
2 processing zones, the European
including BIC, IBAN zone and the Trans-Atlantic zone,
usage of SWIFT services.
and other routing with pairs of operating centres that
●
The business analytics store the traffic for each zone.
information that is tool helps make smarter ●
Distributed architecture will
indispensable for business decisions and improve resilience, add capacity,
control long-term average message
improving straight- pinpoint operational costs, and alleviate European data
through processing. efficiencies protection concerns.
SWIFT Code
Uses the Bank Identifier Code (BIC) to identify each network user and route messages
to their destination. Commonly known as SWIFT Code
1 2 3 4 5 6 7 8 9 10 11

Institution or Bank Code Country Code Location Code Branch code

[optional]

• If the second character is "0", then it is

typically a test BIC as opposed to a BIC used
on the live network.
•'XXX' for primary office.
• If the second character is "1", then it
denotes a passive participant in the SWIFT •Used if the receiving
network bank has assigned
branches or
• If the second character is "2", then it
typically indicates a reverse billing BIC, processing areas
where the recipient pays for the message individual extended
as opposed to the more usual mode codes
whereby the sender pays for the message.
Examples of SWIFT Codes

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 digits and has assigned

branches or processing areas individual extended codes

DEUTDEFF500 is the code for an office of Deutsche Bank in Bad Homburg.

Number 500 is used for specific branch.
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 digits 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.
 The Swift code for State Bank of India , Bangalore office are
given below:
 Bangalore
 Branch Code: 813
SWIFT Code: SBININBB169
SBIN: Bank Code
IN: Country Code
BB: Location
169: Branch Code
SWIFT BIC Codes can be found on official website of SWIFT:
https://www2.swift.com/directories/
Member login is required to download the directories of BIC
Codes of all financial and non-financial institutions.
BIC Codes of individual institutions can be found on their
websites.
Security & Integrity Issues

Security Features: Password, Authentication

of Sender and Message Content,
Encryption, Audit Tracing, Data
Confidentiality

All messages are encrypted

The sender defines and controls the

information in a SWIFT message

Messages are not archived long term,

Messages are stored for 124 days and
then over written
 Data Protection and Audit

An independent, external SWIFT has joined the Safe

Safe Harbor is a
audit of the SWIFTNet Harbor framework to
framework that consists
and SWIFTNet FIN ensure an adequate level
of seven data protection
messaging services is of data protection for
principles based on the
conducted annually in data transfers to its US
EU's data protection
accordance to SAS 70 OPC for European
principles
standards Countries
SWIFT Security Control Policy

Governance

●
A governance structure is in place to enable SWIFT to meet its security commitments to its customers,
supported by policies and procedures and the organisational management structure

Confidentiality

●
Cryptographic methods are designed and used to protect the confidentiality of customers’ messages

Integrity

●
Mechanisms are in place to protect against unauthorised changes to the messaging service infrastructure, and to detect corruption of messages
●
SWIFT validates messages, and only validated messages are processed and delivered
SWIFT Security Control Policy

Availability

●
The messaging service infrastructure is designed and tested to meet quality, recovery time objectives
●
Processes and procedures are in place to detect and react to problems
●
Customers can report problems and obtain the status of problems and the messaging service infrastructure

Change Management

●
Changes to the messaging service and customer configurations infrastructure are
planned, validated, monitored and implemented in a controlled manner
Thank You !!!