SWIFT Code stands for 'Society for Worldwide Interbank Financial Telecommunication' code. A SWIFT code is also called BIC Code 'Bank Identification Code' which is used to identify banks uniquely throughout the world. A SWIFT code is recognized and approved by the International Standards Organization, or ISO, and represents a particular bank or bank branch. It is especially useful in facilitating international wire transfers.
The SWIFT code is an 8 or 11 alphanumeric characters code that uniquely identifies financial institution. If a SWIFT code is eleven characters, this means that the bank has added a three-digit code to denote a specific branch of a bank.
First 4 characters - Bank Code - Identifies financial institution uniquely (only letters)
Next 2 characters - Country Code (only letters)
Next 2 characters - Location Code (Letters and Digits)
Optional Last 3 characters - Branch Code of a bank ('XXX' for main office) (Letters and Digits)
For e.g. the swift code for (ML MARKETS) branch of MERRILL LYNCH EQUITIES (AUSTRALIA) LTD is MLEQAU2SMLM where first 4 characters MLEQ signify the bank code for MERRILL LYNCH EQUITIES (AUSTRALIA) LTD while last 3 characters MLM is the branch code for (ML MARKETS) branch. The above mentioned format of Bank Identifier Codes (BIC) or Swift Code is approved by the International Standard Organization (ISO) and represents a particular bank or bank branch.