It is a term which defines a code used by a financial institution that is recognized universally. The code labels a certain financial institution worldwide. It includes from 8 to 11 digits: first 4 digits for a code of the bank, 2 digits to define a country and the last 2 for the place of residence. This code is essentially important if the client wants to transmit funds to another country. It is sometimes can be named the BIC.
The cipher is commonly presented as a combination of different letters which help to recognize the bank. It enables the transactions on the global level. Additionally, it is also mandatory for banks because with the help of the code they can send other messages.
A SWIFT number is an approved format for BIC and is used to transmit funds between international financial institutions. Frequently, they are applied for global wire transfers in order to recognize all required data. The cipher is used in order to operate the transfers of the funds accurately as well as to avoid complications which have a link to the money.