What are Bank SWIFT (BIC) codes?
In world practice are used encryption methods to identify financial institutions in order to facilitate automated processing of messages. Because of the different approaches to the system of codes assignment and of their diversity, many institutions have more than one code, while others are not assigned any. To create the unique identification code by the International Standards Organization (acronym is ISO) was developed international standard ISO 9362 - "Banking" - "Banking telecommunication messages" - "The identification codes of banks" - "BIC Codes». It establishes a universal method of identifying of financial institutions ...
BIC codes are divided into two types - active and inactive. Active codes, SWIFT BIC codes, are assigned to organizations - users of SWIFT.
In the inactive codes, NON-SWIFT BIC, the eighth character is always one ("1"), indicating that this financial institution is not a valid user of the SWIFT.
SWIFT bank code is assigned and is unique, clearly defining the settlement participant in the financial industry. Any branch of this participant has to start with the same four characters of bank code of the head office, regardless of the geographical location of the branch.