BIC/SWIFT is an international banking code frequently requested in financial transactions abroad, especially when transfers outside the euro zone or contacts with international entities are involved. Although it often appears on bank forms or requests, it is not always clear what exactly it is for or in which situations it is mandatory.
Whenever someone makes an international transfer, handles financial matters outside of Portugal or fills out more detailed banking documentation, it is common for the so-called BIC or SWIFT to be required. This code plays a central role in the functioning of the global financial system, according to the specialized technology portal Pplware.
Meaning of BIC or SWIFT
BIC, an acronym for Bank Identifier Code, is a standardized banking code that uniquely identifies a banking institution anywhere in the world. It is also known as a SWIFT code, the name of the entity responsible for assigning it.
This system is managed by the Society for Worldwide Interbank Financial Telecommunication, an international network that connects banks and financial institutions, allowing the secure exchange of information about payments and banking operations.
What is this code for?
BIC/SWIFT is mainly used in international bank transfers, functioning as a kind of bank address in the global financial system. It is this code that guarantees that the money is sent to the correct institution, in the right country.
Among the most common situations in which this is requested are international transfers outside the SEPA space, receiving payments from abroad, operations between banks in different countries and various administrative or financial processes with international entities.
Without this identifier, a transfer may not be processed correctly or experience significant delays, according to the previously cited source.
Difference between IBAN and BIC/SWIFT
Although they are often requested together, IBAN and BIC/SWIFT have different functions. The IBAN identifies the customer’s bank account, while the BIC/SWIFT identifies the bank where this account is domiciled.
Within the SEPA zone, which includes Portugal and other European countries, the IBAN is, in most cases, sufficient to make transfers. In operations outside this space, BIC/SWIFT continues to be mandatory.
Where to find your account’s BIC/SWIFT
The BIC/SWIFT code can be consulted in several places. It is common to find it on bank statements, in the home banking area or on the financial institution’s official website. Alternatively, it can be requested directly from the bank’s customer support, which provides this information in a simple way, in accordance with .
Despite the technical name, the role of BIC/SWIFT is clear: to ensure that, in international transfers, the money reaches the right bank, without errors or ambiguities, in an increasingly globalized financial system.
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