Glossary

Wire Transfer

Is a method of electronic funds Transfer from one entity to another. It can be executed from one Financial Institution to another, or through a Transfer of cash at a Cash Office. Different Wire Transfer systems and operators provide a variety of options relative to the immediacy and finality of Settlement, cost, value, and volume of the Transfer.

How does Wire Transfer work?

Wire Transfer traditionally works when the entity wishing to make a Transfer approaches the Originating Financial Institution and gives the order to transmit a certain amount of money. This normally involves simultaneous provision of IBAN and BIC numbers. The Originating Financial Institution then transmits a message via secure system (e.g. SWIFT) to the Receiving Financial Institution requesting it to effect the payment according to the dispatched instructions. The transmitted message also includes Settlement Instructions and details of transmission of the funds (which may be sent within hours or even days). Either the Financial Institutions involved must hold a corresponding account with each other, or the order must be sent to a Corresponding Financial Institution.

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