Swift in a nutshell! some thing I put together for everyone

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Today, SWIFT serves as the primary interbank messaging service for financial institutions around the globe and works with 11,000 member institutions worldwide and facilitates $150 trillion in transactions per year

2018: Instant Payments in Partnership With TIPS and EBA Clearing 

Two years later, SWIFT partnered with the European Central Banking system (Eurosystem) to enable instant cross-border payments in the eurozone. It did so with the launch of SWIFTNET-Instant service, the network service provider for Eurosystem’s TARGET Instant Payment Settlement (TIPS). TIPS in turn allows participating banks in the eurozone to offer customers round-the-clock instant payment.

SWIFT called the collaboration “a pivotal building block for access to the future Eurosystem Single Market Infrastructure Gateway.”

More recently, SWIFT said it was joining forces with the European and U.S. payment service providers EBA Clearing and The Clearing House to allow for “immediate cross-border payments.”

The pilot project has received input from 24 banks in 11 countries, though it will initially support payments only in euros and dollars. But the three partners hope that it will be “extended to other currency channels and payment systems.”

Seven banks were participating in the concept launch at the time of the announcement, including giants like Bank of America and Citi.

2022: Blockchain and Symbiont Partnership

Most recently, SWIFT began testing the waters of the blockchain world as a way of delivering enhanced services to participating institutions. In fact, just this month SWIFT announced that it is partnering with the blockchain FinTech company Symbiont to facilitate the sharing of information about corporate events among institutions in its network.

SWIFT plans to use Symbiont’s smart contracts to update records of “dividend payments, exchange offers, mergers, Dutch auctions,” a press release said, in a bid to make communication between all the actors in the investment ecosystem more efficient.

WIFT connections enable access to a variety of applications, which include real-time instruction matching for treasury and forex transactions, banking market infrastructure for processing payment instructions between banks, and securities market infrastructure for processing clearing and settlement instructions for payments, securities, forex, and derivatives transactions

Compliance Services

Aimed at services around financial crime compliance, SWIFT offers reporting and utilities for Know Your Customer (KYC), sanctions, and anti-money laundering (AML).14

Who owns the SWIFT system?

SWIFT is a cooperative company that is owned and controlled by its shareholders (certain member financial institutions), representing some 3,500 such firms from across the world. SWIFT is overseen by the G-10 central banks.17

Do all banks use SWIFT?

No. In fact, many smaller banks in the U.S. and most credit unions are not members of the SWIFT network.

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2022 Global Payments Guide Last Updated: March 08, 2022 For the most up-to-date version, please visit jpmorgan.com/visit/guide | 35 The following character representations and length indications are used: N Digits numeric characters c Upper and lowercase alphanumeric characters (A-Z, a-z, and 0-9) a Uppercase letter alphabetic characters (A-Z only) e Blank space n Maximum length nn! Fixed length | 35 Iraq IQD – Iraqi Dinar Overview • Information provided by the Beneficiary: Remitter should obtain all required bank information from the Beneficiary (e.g. SWIFT BIC, IBAN, and beneficiary bank address). Country Requirements/Restrictions • Payment Restrictions: Individual to individual (P2P) payments are not permitted Payment Formatting Rules for IQD • Ordering Customer (SWIFT MT103 F50): Include account number, full name (no initials), and address of the ordering customer. Use of initials can delay receipt of funds by the beneficiary. • Beneficiary Customer (SWIFT MT103 F59): Include account number (IBAN), full name (no initials) and address of the beneficiary customer. Use of initials may delay receipt of funds by the beneficiary. – IBAN numbers for beneficiaries with accounts in Iraq must be included in the payment instructions. Account # Ex 123456789012 Country Code IQ Structure IQ2!n4!n3!n12!n Length 23!c Electronic Format Ex. IQ98NBIQ850123456789012 Print Format Ex. IQ98 NBIQ 8501 2345 6789 012 • Beneficiary Bank (SWIFT MT103 F57): Include SWIFT BIC with branch identifier/code (where required), full name of bank branch, and address of the beneficiary bank. – SWIFT BIC is 8 or 11 alphanumeric characters: xxxxIQxx or xxxxIQxxxxx. • Reason for Payment (SWIFT MT103 F70): Purpose of payment must be clearly identified (rent, salary, medical expenses, office expenses, etc.). Additional Information • Payments below 10,000 IQD are not supported. If, for any reason, a transaction is submitted, it will be cancelled.

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• Iraqi PM says banking reforms reveal fraudulent dollar transactions

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• Iraq has in recent months been making efforts to ensure its banking system is compliant with the international electronic transfer system known as SWIFT

 

 

BAGHDAD: Iraq’s premier said Tuesday that new banking regulations had revealed fraudulent dollar transactions made from his country, as the fresh controls coincide with a drop in the local currency’s value.
Iraq has in recent months been making efforts to ensure its banking system is compliant with the international electronic transfer system known as SWIFT.
Referring to the new controls, Prime Minister Mohammed Shia Al-Sudani hailed “a real reform of the banking system,” but denounced “falsified invoices, money going out fraudulently,” in particular as foreign currency payments for imports.
“That is a reality,” he said in an interview on state television.
The adoption of the SWIFT system was supposed to allow for greater transparency, tackle money laundering and help to enforce international sanctions, such as those against Iran and Russia.
An adviser to Sudani had said that since mid-November, Iraqi banks wanting to access dollar reserves stored in the United States must make transfers using the electronic system.
The US Federal Reserve will then examine the requests and block them if it finds them suspicious.
According to the adviser, the Fed had so far rejected 80 percent of the transfer requests over concerns of the funds’ final recipients.
Before the introduction of the new regulations, “we were selling $200 million or $300 million a day,” Sudani said.
“Now, the central bank provides $30 million, $40 million, $50 million,” he said, questioning: “What were we importing in a single day for $300 million?“
“There are products that were entering (Iraq) for prices that make no sense. Clearly, the objective was to take foreign currency out of Iraq,” he said. “This must stop.”
Money may have been transported to Iraq’s autonomous Kurdistan province “and from there to neighboring countries,” Sudani said, without specifying whether he was referring to Turkiye, Iran or war-torn Syria.
He said the new controls had been planned for two years, in accordance with an agreement between Iraq’s central bank and US financial authorities, and deplored previous failures to put them in place.
Iraq, which is trying to move past four decades of war and unrest, is plagued by endemic corruption.
The official exchange rate is fixed by the government at 1,470 dinars to the dollar, but the currency was trading at around 1,680 on Tuesday on unofficial markets amid dollar scarcity.
The drop has sparked sporadic protests by Iraqis worried about their purchasing power.
Foreign Minister Fuad Hussein and the new central bank chief will be among a delegation traveling to Washington on February 7 to discuss the new mechanism and the fluctuating exchange rate, Sudani said.

 

great article explains why they dont have control as yet over money going out...