Money & Finance › Payments & money movement › Cross-border payments: moving money between countries
SWIFT: the bank messaging network
Since 1973· Institution or agency
Fact, law or dataA rule, statute, definition or measured number.
A Belgian, bank-owned cooperative that sends the standardized messages banks use to order cross-border payments.
See it on the Money & Finance map →How it works
Founded in 1973 and live from 1977, SWIFT links over 11,000 institutions in more than 200 countries and territories, carrying tens of millions of messages a day. It does not hold or move money: a SWIFT message tells a bank to pay, and funds actually settle through accounts banks keep with each other (correspondent accounts). Each bank has a SWIFT/BIC code, the one used for international wires. Because SWIFT is based in Belgium, EU law decides who gets cut off.
Why it matters
It is the backbone of international payments, so disconnection is a powerful sanction and rivals keep trying to replace it.
Facts, rules and data
SWIFT's published statistics and annual reports; EU Council regulations disconnecting Iranian banks in 2012 and Russian banks in 2022.
Debates and risks
How far rivals such as Russia's SPFS and China's CIPS can reduce reliance on it; CIPS still uses SWIFT messages for much of its traffic.
Connections (7)
▸Financial sanctions and 'weaponizing' the dollar can cut banks off from SWIFT: the bank messaging networkFact, law or data
The connection
Banks send cross-border payment orders as SWIFT messages, so a bank cut off from SWIFT struggles to send or receive international payments, slowing a country's trade. SWIFT is a Belgian cooperative under EU law, so disconnections come through EU regulations, often after US pressure. The US's stronger tool is dollar clearing: OFAC can bar US banks from dealing with targets.
When and why
Iranian banks were cut off in March 2012 and again in 2018; seven Russian banks in March 2022, with Sberbank added in June 2022.
How we know
EU Council regulations naming the banks, and SWIFT's own public statements confirming it complied.
Debates and risks
How much damage disconnection does when targets reroute through Russia's SPFS, China's CIPS or third-country banks is debated.
▸SWIFT: the bank messaging network is the cross-border cousin of Payment rails: how money moves from account to accountFact, law or data
The connection
SWIFT carries standardized payment instructions among more than 11,000 financial institutions in over 200 countries, but moves no money itself. Settlement runs through correspondent banks' accounts and domestic rails: a dollar transfer from Seoul to New York ultimately settles on CHIPS or Fedwire.
When and why
Founded in 1973 in Belgium by 239 banks and live in 1977; a member-owned cooperative overseen by the National Bank of Belgium.
How we know
SWIFT's annual reports and rulebooks; correspondent-banking studies by the Bank for International Settlements.
Debates and risks
Cutting off Iranian banks (2012) and Russian banks (2022) pushed countries toward alternatives like Russia's SPFS and China's CIPS; how far they can erode SWIFT and dollar dominance is debated.
▸SWIFT: the bank messaging network carries the messages for most Cross-border payments: moving money between countriesFact, law or data
The connection
A US company's bank wiring dollars to Seoul sends a SWIFT payment message naming the beneficiary's bank and any intermediaries. SWIFT moves no money; banks then settle through correspondent accounts. Its gpi tracker, since 2017, lets senders follow a payment along the chain like a parcel.
When and why
Worldwide since 1977, linking over 11,000 institutions; payment messages moved to the richer ISO 20022 format by November 2025.
How we know
SWIFT's annual reports and traffic statistics, and BIS studies of correspondent banking.
Debates and risks
How much China's CIPS and other systems will reduce SWIFT's role, especially for sanctioned countries, is debated.
▸CIPS: China's cross-border yuan payment system (2015) aims to reduce China's reliance on SWIFT: the bank messaging networkFact, law or data
The connection
SWIFT carries the payment messages most banks use; it is based in Belgium and follows EU sanctions decisions. CIPS has its own message format, so yuan payments could in principle avoid SWIFT. In practice many CIPS members still send instructions over SWIFT, so reliance is reduced, not ended.
When and why
Plans sped up after the 2014 sanctions on Russia; CIPS launched in 2015 and saw more use after Russian banks lost SWIFT access in 2022.
How we know
CIPS rules describe its messaging standard; SWIFT and Chinese officials acknowledge that many CIPS payments use SWIFT messages.
Debates and risks
How quickly CIPS could switch fully to its own messaging if China's big banks were ever cut off from SWIFT.
▸Project mBridge: shared ledger for central-bank money offers a possible bypass around SWIFT: the bank messaging networkExperts disagree
The connection
A normal cross-border payment runs on SWIFT messages and chains of correspondent banks, often in dollars, taking a day or more. mBridge settles directly between members on one ledger, needing neither. That could let trade avoid dollar channels and US oversight, though volumes so far are tiny next to SWIFT's.
When and why
Pilot results from 2022; debate grew after the BIS exit in October 2024.
How solid is the link?
BIS pilots showed settlement in seconds; real use remains small, about $55 billion in total by late 2025.
Debates and risks
Whether mBridge could be used to evade sanctions, a worry its members reject.
▸BRICS payment plans: BRICS Pay and linked national systems would offer an alternative to SWIFT: the bank messaging networkExperts disagree
The connection
A BRICS link would carry payment messages among members' national systems, such as China's CIPS, Russia's SPFS, India's UPI and Brazil's Pix, without SWIFT. That matters most to members under sanctions, such as Russia and Iran.
When and why
Pushed during Russia's 2024 BRICS chairmanship; studied by a BRICS payments task force since.
How solid is the link?
Summit declarations and Russian finance ministry proposals; no live system exists yet.
Debates and risks
Whether members not under sanctions, such as India and Brazil, will risk US displeasure to build it.
▸SWIFT: the bank messaging network carries the instructions for international Wire transfers: same-day, final and hard to reverseFact, law or data
The connection
An international wire is a chain of instructions: the sending bank sends a SWIFT message to its correspondent, which pays the next bank, until funds reach the beneficiary's account. Domestic US wires use Fedwire or CHIPS instead. The SWIFT/BIC code on wiring instructions identifies each bank.
When and why
Worldwide since 1977; US banks use SWIFT for foreign wires and Fedwire or CHIPS for the dollar leg.
How we know
SWIFT message standards (the MT103 and its ISO 20022 successor, pacs.008) and banks' published wiring instructions.
Debates and risks
Whether faster rivals, such as stablecoins or linked instant-payment systems, will replace SWIFT for routine wires is uncertain.