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SWIFT adds daily updates to the SWIFTRef platform, daily updates to BICs and SSIs now available

SWIFT today added daily updates to its reference data directories to reduce industry costs associated with payment processing. As part of the SWIFTRef data platform, the new service will replace monthly updates and will help financial institutions and corporates respond to market developments and the evolving regulatory landscape.

Reference data is constantly changing with BICs (Business Identification Codes), National bank identifiers or Standing Settlement Instructions (SSIs) being modified due to merger or splits of companies, the disappearance or creation of entities and modifications in correspondent banking relationships. SWIFT calculates that in a typical month:

  • approximately 1,400 BICs undergo one or more changes, meaning they are newly created, deactivated or modified;
  • approximately 1,900 national clearing codes are created or removed; and
  • approximately 35,000 SSIs change.

In providing daily updates, SWIFTRef helps organisations comply with regulations such as MiFID and SEPA, which require timely reporting and improved identification of counter-parties with valid BICs or International Bank Account Numbers (IBAN) respectively

The banks are pleased with this improvement in SWIFT's service:

  • Arthur Sirks, Senior Product Manager for SWIFT at ING Bank said, "Daily SWIFTRef download files enable ING Bank to process SEPA payments using the most up-to-date IBAN related reference data, thus ensuring the highest STP rates possible and avoiding expensive repair."
  • Martine Brachet, Head of Interbank Relationship and French NMG at Société Générale, said: "Reference data is now part of the core of the information systems of the banking sector. Without BIC, IBAN or SSI it is not possible to manage the enormous daily flows of payments without taking the risk of delivering the funds to the wrong parties." Brachet added, "From February 2014, the European banks will have to derive the BIC of the destination from the IBAN, for national SEPA payments, it is essential to get valid and reliable reference data on a daily basis in order to make the relevant controls and so reduce the operational and financial risks."

Congratuations to SWIFT on this new service, nevertheless, there are two questions:

  1. why didn't SWIFT do this earlier, daily updates of the SWIFTRef data has been needed for years?
  2. how do corporate treasury departments get hold of this latest data, it is not only the banks who need these daily updates?

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