What is SWIFT?

SWIFT stands for Society for Worldwide Interbank Financial Telecommunication.

It is a global provider of secure financial messaging services founded in 1973 to replace telex. It is a member-owned cooperative connecting more than 11,000 banks, financial institutions and corporations in more than 200 countries and territories.

SWIFT operates internationally with 26 offices located across the world and is headquartered in Belgium. As a strategic international financial messaging service provider to the financial industry, SWIFT is overseen by the G-10 central banks, with support from central banks of other countries as well.

How is SWIFT governed?

It is a cooperative company under Belgium law and is owned and controlled by its shareholders (financial institutions) representing approximately 2,400 shareholders from across the world. The shareholders elect a board of 25 directors, representing banks across the world, which govern the company and oversee the management of the company. The executive committee is a group of full-time employees headed by the chief executive officer.

SWIFT is overseen by the G-10 central banks (Belgium, Canada, France, Germany, Italy, Japan, The Netherlands, United Kingdom, United States, Switzerland and Sweden), as well as the European Central Bank, with its lead overseer being the National Bank of Belgium.

In 2012, this framework was reviewed, and the SWIFT Oversight Forum was established, in which the G-10 central banks are joined by other central banks from major economies. Reserve Bank of Australia, Peoples Bank of China, Hong Kong Monetary Authority, Reserve Bank of India, Bank of Korea, Bank of Russia, Saudi Arabian Monetary Agency, Monetary Authority of Singapore, South African Reserve Bank and the Central Bank of the Republic of Turkey. The SWIFT oversight forum provides a setting for the G-10 central banks to share information on swift oversight activities with a wider group of central banks.

SWIFT is committed to open, constructive and regular dialogue with oversight authorities, as well as with individual jurisdictions. The oversight primarily on ensuring that SWIFT has effective controls and processes (e.g. in terms of security and resilience) to avoid posing a risk to financial stability and to the soundness of financial infrastructures.