SWIFT Society for Worldwide Interbank Financial Telecommunication Worldwide

SWIFT

Society for Worldwide Interbank Financial Telecommunication

�Worldwide Chat Room ◦ 8, 740 financial institutions “friends” �BIC: bank identifier codes “screen names” ◦ Follows ISO 9362 Standards ◦ It is the unique identification code for a bank �Interface Software “AIM 6. 0” ◦ SWIFTNet Link (SNL) – primary means of communication with SWIFTNet ◦ Alliance Gateway – allows other software to communicate through the SNL. “AIM for Finances? ”

�Send messages back and ◦ Returns either an ACK : ) ◦ Or an NAK : ( forth �A NAK (negative-acknowledge character) incurs a tariff on the sender as punishment. (Think “warning-level”) “AIM for Finances? ”

�Does Not: ◦ Facilitate funds transfer ◦ Hold accounts for members ◦ Perform any clearing or financial functions ◦ Does not do any additional processing �Used To: ◦ Provide information for tracking terrorist finances to the United States �Breach of Belgian and European Privacy Laws What SWIFT Doesn’t Do

�More than $2 Trillion per day �Messages guaranteed to arrive on-time ◦ Losses due to late messages are reimbursed � 2 (soon 3) Datacenters capable of fully supporting the entire operation. What SWIFT Does Do

�Payments: Transfers �Trading: Loans, Precious Metals �Trade Services: Collections �Securities: Stocks, Bonds Four Primary Service Areas

�SWIFTnet is SWIFT’s advanced Internet protocol-based messaging platform. �It is based around multiple messaging services that guarantee the: ◦ Security ◦ Reliability ◦ Availability �To the client this service is known as SWIFTnet Link. How does SWIFTnet work?

�Inter. Act ◦ Enables the exchange of files between organizations and financial institution �FIN ◦ Enables the exchange of messages formatted with SWIFT MT Standards �File. Act ◦ Enables the exchange of messages formatted with SWIFT MX Standards Services

�Core messaging service ◦ Used by over 8, 000 financial institutions and sends roughly 15 million messages a day �Features: �FIN supports central message validation of a wide range of SWIFT standards, which are used across a broad range of business areas �Each FIN message is controlled for compliance with the predefined message exchange and closed user exchange to guarantee the message it delivered to the correct destination �In case of dispute, SWIFT is able to confirm that a message exchange did take place as claimed FIN

Optional Features �Delivery notification �Online retrievals- allows users to review messages that have been exchanged in the past 124 days �Non-delivery warnings- This informs you that a message remains undelivered after a certain period of time �FIN copy- All messages can be copied to a central and secure point FIN Optional Features

�Enables financial institutions to transfer files in a Safe and secure manner. �Banks need this for ◦ Payment processing ◦ Reporting ◦ Central-bank reporting ◦ Corporate-to-bank Reporting File. Act

�Supports all file types �File size is a maximum of 250 �Includes Encryption �Integrity Control �Monitors the transfer progress and current status �Delivery notification ◦ Confirmation by delivery and recipient ◦ Public Key Infrastructure (PKI) and encryption File. Act Features

�Inter. Act enables financial institutions to exchange financial messages. ◦ Offers Closed user group control ◦ Message validation �Interact offers ◦ Store and Forward Messaging �Stores message on a central location �Encrypted ◦ Real-time Messaging �If both are online at the same time of transmission �Safe, encrypted transfer Inter. Act

�Closed user group control ◦ Each Inter. Act message is controlled for compliance to determine the proper senders and recipients connect �If message was sent Store and Forward mode ◦ Inter. Act offers a number of messaging features to control traffic delivery �Encryption �PKI Security: Public Key Infrastructure Standard Inter. Act features

�SWIFT supports the community by contributing to various industry-wide initiatives ◦ E-invoicing �Electronic invoicing saving billions ◦ Mi. FID (Markets in Financial Instruments Directive) �“single passport” Industry Initiatives

�MX Concepts -guiding concepts for the development of XML-based Standards(MX) standards ◦ Flexibility ◦ Granularity ◦ Character sets ◦ Maintenance ◦ Application Header Implementing Standards

�Helps customers to implement Standards efficiently and easily. ◦ Standard Smart Test Messages ◦ Standard Translation Rules ◦ Credit Transfer and Cash Mgmt Messages ◦ Investment Fund Messages Standards Product Line