Society
of Worldwide Interbank Financial Telecommunications. It is a dedicated
computer network that is set up to support fund transfer messages
between member banks worldwide. The majority of international interbank
messages use the SWIFT network. SWIFT transports financial messages in a
highly secure way, but does not hold accounts for its members and does
not perform any form of clearing or settlement.
SWIFT does not
facilitate funds transfer, rather, it sends payment orders, which must
be settled via correspondent accounts that the institutions have with
each other. Each financial institution, to exchange banking
transactions, must have a banking relationship by either being a bank or
affiliating itself with one (or more) so as to enjoy those particular
business features.
