Society For Worldwide Interbank Financial Telecommunication (SWIFT):
As tensions exacerbate between Washington and Moscow over Ukraine, political commentators say that the United States could, as a last resort, exclude Russia from the Society for Worldwide Interbank Financial Telecommunication (SWIFT).
- If a country is excluded from the most participatory financial facilitating platform, its foreign funding would take a hit, making it entirely reliant on domestic investors.
- This is particularly troublesome when institutional investors are constantly seeking new markets in newer territories.
- It is a messaging network that financial institutions use to securely transmit information and instructions through a standardized system of codes. Under SWIFT, each financial organization has a unique code which is used to send and receive payments.
- 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.
- The SWIFT is a secure financial message carrier — in other words, it transports messages from one bank to its intended bank recipient.
- Its core role is to provide a secure transmission channel so that Bank A knows that its message to Bank B goes to Bank B and no one else. Bank B, in turn, knows that Bank A, and no one other than Bank A, sent, read or altered the message en route.
- The Belgium-headquartered SWIFT connects more than 11,000 banking and securities organizations in over 200 countries and territories.