SWIFT CODE

SWIFT CODE
SWIFT is the short form of "Society or Worldwide Interbank Financial
Telecommunication". In simple terms swift has two main roles in
international financial transactions, firstly SWIFT provide a secure
communications platform by which financial institutions can
communicate each other reliably & fast and secondly SWIFT establishes
standard message formats which can be used on secure SWIFT
platforms.
Today banks use SWIFT platform to communicate each other when
sending a wire transfer, issuing a letter of credit, advising a discrepancy
message etc.
Each of these message formats have a different code, which is called
swift message types. For example a bank must use MT700 Issue of a
Documentary Credit when issuing a letter of credit and MT 734 advice of
a refusal when giving its refusal message. (MT means Message Type)
Important Note: According to the current letters of credit rules, UCP 600,
a letter of credit will be deemed to be operative letter of credit if it is
transmitted via an authenticated electronic platform such as SWIFT.