Citibank N.A. United States Swift Code CITIUS33

A SWIFT code is a standardized format utilized during international transactions between banks and financial establishments. It pinpoints the specific branch, bank, and country where an account is held and conveys this information using BIC (Bank Identifier Codes).

SWIFT code Swift code (8 characters) Branch name CITIBANK N.A. Branch address 12401 PROSPERITY DRIVE Branch code CITIBANK N.A. SILVER SPRING United States

What are SWIFT Codes?

A SWIFT code is a standardized format utilized during international transactions between banks and financial establishments. It pinpoints the specific branch, bank, and country where an account is held and conveys this information using BIC (Bank Identifier Codes).

The acronym SWIFT represents the Society for Worldwide Interbank Financial Telecommunication. The BIC system is both owned and managed by SWIFT. This system can swiftly recognize a bank and expedite payments. Furthermore, it was through the SWIFT network that the standardization for IBAN (International Bank Account Numbers) was established.

The SWIFT network employs BIC codes to facilitate secure transactions, such as international wire transfers, global money transfers, and SEPA payments. Beyond transactions, it also serves purely as a communication system.

Interestingly, when a company engages with the SWIFT network, they aren’t directly transferring funds. Rather, it’s akin to issuing a “payment instruction” between two banking institutions.

Other names for a SWIFT code include:

  • SWIFT ID
  • BIC code
  • ISO9362

Format of a SWIFT Code 

Format of a SWIFT Code 

The SWIFT code comprises 8-11 alphanumeric characters, arranged systematically as follows:

  • Bank code: Four letters that represent the bank’s name.
  • Country code: A two-letter code denoting the nation.
  • Location code: Two alphabets or digits indicative of the bank’s main office.
  • Branch code: Three letters or digits specifying the bank’s specific branch.
  • This branch code operates similarly to the routing number in the US. In instances where the branch code is represented as “XXX,” the transfer is directed to the bank’s primary office.

    The formal standard governing SWIFT/BIC codes is termed as ISO 9362. Consequently, it’s not uncommon to see this ISO term interchangeably used with “SWIFT.” The International Organization for Standardization (ISO) dictates the SWIFT code’s structure, encompassing the character types and their overall length.

    Example of a SWIFT Code

    An Example of a SWIFT Code

    One example of a SWIFT code is the Italian bank UniCredit Banca. It’s located in the city of Milan and has the code:

    WUNCRITMM (XXX)

    • UNCR is the bank code for UniCredit
    • ITis the country code for Italy
    • MM stands for the location code, which is Milan

    As you will see, there is no specific branch code for this bank. Therefore, the transfer will be sent to the primary office in Milan.

    When is a SWIFT Code Needed?

    A SWIFT code is typically required when conducting international monetary transactions between banks, especially during wire transfers or SEPA payments.

    Initially, SWIFT was conceived solely to aid communication regarding treasury and correspondent dealings. Yet, the versatility of its messaging system paved the way for expansive scalability.

    SWIFT now provides services for:

    • Banks
    • Corporates
    • Foreign exchange
    • Clearing systems
    • Asset management companies
    • Money brokers
    • Non-bank financial institutions
    • Treasury market participants
    • Depositories
    • And more…

    How Does a SWIFT Code Work for International Payments?

    Originally, the intention behind SWIFT was to devise a method allowing banks to communicate both more effectively and securely, especially when it came to handling international transactions.

    It’s pivotal to understand that the term “communicate” is consistently utilized because SWIFT primarily acts as a conduit or messenger among banks. The code essentially deciphers and conveys payment directives from the initiating bank (the payer) to the recipient bank (the beneficiary).

    A SWIFT code comes into play when financial entities, such as banks or clearing houses, employ it to determine where international funds should be dispatched. This encompasses pinpointing both the beneficiary’s and sender’s banks, as well as the ultimate destination for the funds.

    Beyond just the banks at either end of the transaction, a SWIFT transfer might occasionally necessitate the involvement of an intermediary bank. Given that each country’s banking regulations can differ, there are instances when a third-party institution is required to facilitate the completion of the transaction.

    To enable the seamless operation of the SWIFT mechanism, banks establish mutual accounts known as Nostro (our account with you) and Vostro (your account with us) accounts.

    Nostro and Vostro Accounts

    Since both banks need to keep a record of withdrawals and deposits, this leads to two mirroring ledgers known as Nostro and Vostro accounts.

    Nostro 

    Nostro is Latin for “ours” and refers to an account a bank holds in a foreign location with another bank.

    Vostro

    Vostro means “yours” and it’s how a bank refers to accounts other banks have with them.

    When two banks have an established relationship via Nostro and Vostro accounts, SWIFT transactions are straightforward and instantaneous. However, in the absence of such a relationship, the SWIFT system needs to enlist the assistance of a third-party entity, termed an intermediary or correspondent bank.

    Upon identifying a correspondent bank (one that has ties with both the originating and recipient banks), the SWIFT transfer can advance. It’s important to note that the inclusion of more banks in an international transaction chain often translates to higher fees. Not only can this escalate costs, but it might also elongate the transaction time and introduce additional layers of risk.

    How to Find a SWIFT Code

    A SWIFT code can be easily located in a variety of places, here are a few:

    • Bank account statements
    • Online banking customer portal
    • Bank’s website
    • Call the bank

    You can also find it online with a quick SWIFT code search tool.

    How to Check a SWIFT Code

    Online tools exist that allow you to verify the authenticity of a SWIFT code. Simply input the code into a dedicated SWIFT code verification tool, and it will promptly indicate its validity. Given that international banks publish these codes on the internet, confirming the accuracy of a provided code is typically quick and straightforward.

    Despite the emergence of alternative real-time messaging services, SWIFT remains a stalwart in the capital markets. And there’s a rationale behind its enduring relevance.

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