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The SWIFT (The Society for Worldwide Interbank Financial Telecommunication) freently mentioned in news, is essentially a
Explanation
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is a global messaging network used by financial institutions to securely transmit information and instructions through a standardized system of codes [2]. Established in 1973, it provides a secure environment that enables over 11,000 institutions in more than 200 countries to send and receive information about financial transactions [2]. While it is often associated with international money transfers, SWIFT itself does not move money; instead, it transmits the payment orders that must be settled via correspondent accounts between banks [2]. It serves as the industry standard for financial messaging syntax, covering activities like payment instructions, securities transactions, and trade finance [2]. Although its data is sometimes used by agencies for tracking terror finance or money laundering, SWIFT's primary identity is a messaging system for global financial transactions rather than a financial intelligence or terror detection agency [1].
Sources
- [2] https://home.treasury.gov/policy-issues/terrorism-and-illicit-finance/terrorist-finance-tracking-program-tftp
- [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 8: Financial Market > SWIFT Code > p. 227