What is the SWIFT international money transfer system, and how to use it?

SWIFT (Society for Worldwide Interbank Financial Telecommunication) is the world's largest messaging system between banks and other financial institutions. According to the system itself, about 42 million messages are processed daily in the SWIFT network, which connects over 11,000 organizations from more than 200 countries around the world. It helps to transfer money between countries quickly and securely: instead of having to figure out complicated banking procedures yourself, you only need to provide a few details, and the system will do everything for you.

How SWIFT works

The main task of SWIFT is to transmit information about transfers with maximum accuracy and security. The system itself does not move money, but only ensures that the sender's and recipient's bank details are correctly transmitted to the right destination. Imagine sending a letter abroad: the postal service doesn't transport you personally, but accurately transmits your message to its intended destination. Similarly, SWIFT transmits the bank’s "address" (BIC), the recipient's IBAN and other details of the transfer.

How to use SWIFT

If you need to quickly and securely send money abroad or receive funds from abroad, the SWIFT system will prove to be an indispensable assistant. It connects thousands of banks around the world and allows you to make transfers to pretty much any country. Below, we will figure out how to use SWIFT correctly in order to minimize possible errors and delays.

Choosing a bank

Make sure that your bank supports SWIFT transfers. In Kazakhstan, almost all large financial institutions provide this service, including Halyk Bank, Kaspi Bank, ForteBank, Jusan Bank, Altyn Bank, Bank RBK and others. You can find out the details of fees and transfer times at any of these banks to make sure that the offer you choose really meets your needs.

Preparing the details

For an international transfer, you will need:

• The recipient bank's SWIFT code (BIC);

• The recipient’s account number or IBAN;

• Full name or company name;

• The recipient’s address (if required by the bank).

Preparing the details is an important step, because the speed and accuracy of the transfer of funds depend on the correctness of the data. First, you need to find out the SWIFT code (BIC) of the recipient bank. This is a unique identifier for the financial institution, indicating the country and a specific branch of the bank. You can find the SWIFT code on the official bank website or by requesting it from the recipient. Secondly, you need the account number or IBAN of the recipient if they live in countries where the international IBAN standard has been adopted (for example, in Europe). IBAN is a combination of letters and numbers, including the country code, check digits and the account number itself, which helps reduce the risk of errors when entering information.

In addition, be sure to check the spelling of the name (full name) or company name to which the money is being transferred. In the case of a legal entity, you may also be asked to provide the legal address or additional contact information; check with the bank to determine what information is required. The recipient's address may be needed so that the bank can compare the data and make sure that the funds are being sent to the correct details. The more accurately you fill in these fields, the less likely it is that the transfer will be delayed or returned due to mismatched information.

Transfer processing

Transfer processing is one of the most important stages when working with SWIFT, as this is when the amount, currency, fees, and crediting time are determined. The easiest option is to contact a bank branch, where they will help you fill out special forms. However, today most large banks in Kazakhstan offer to do everything yourself through Internet banking: you log into your personal account, find the “International Transfers” or “SWIFT” section, fill in the recipient’s details and confirm the transaction via SMS code or another security method.

The commission for a SWIFT transfer is usually a fixed amount (approximately 3,000 to 5,000 tenge) or is charged as a percentage of the transfer (approximately 0.2–1%). It is better to check the exact rates and conditions with the bank right away, as they may change depending on the amount and destination of the transfer. Funds usually reach the recipient within 1-3 business days, but sometimes the process can take up to 5 days if several correspondent banks are involved. In any case, after the transfer is completed, you will receive a receipt or electronic confirmation, which you can use to track the transaction's status.

Waiting for crediting

Waiting for crediting is the stage when the sender has already completed all the formalities, and the money is “traveling” through a chain of correspondent banks. Each of these banks may verify the payment according to its internal rules and security standards, which can sometimes slow down the process. In most cases, the transfer arrives in 1-3 business days, however, if several banks are involved in the chain or if the transaction falls on weekends or holidays, the period may increase to 5 days. It is best to check the transfer status in your personal account or with the bank manager; this way, you will be able to quickly notice any possible delays and, if necessary, correct the payment details.

Confirmation

When the transfer finally reaches the recipient, the bank usually sends a notification about the funds being credited — this may come as an SMS, a push notification in a mobile app, or an email. If you haven’t received a notification, you can always check the status of the transfer yourself by logging into your online banking or a mobile app and opening the payment history. Some clients may find it more convenient to contact the bank’s call center or visit a branch to make sure the funds have indeed been credited to the account. In any case, once the bank confirms the funds have been credited, the transfer can be considered fully complete.

How to make a SWIFT money transfer in Kazakhstan?

Before sending funds abroad or receiving transfers from abroad, it is important to understand how the process works and what information you need to provide so that the payment arrives quickly and without unnecessary delays. Below, we will look at how to properly organize a SWIFT transfer to or from Kazakhstan, what to pay attention to and what steps should be taken in advance.

Bank branch

To begin, you can use the traditional method and visit a bank branch. You meet with a specialist, inform them of your desire to send or receive a transfer from abroad, present the required documents and provide the recipient's details. The bank employee helps you fill out a payment order, after which you pay the commission and make sure that all the details (SWIFT code, IBAN, amount and currency) are entered correctly. Then all that remains is to wait for the funds to be credited, which can take from one to five business days, depending on the chain of correspondent banks.

Internet banking

Many banks in Kazakhstan provide the opportunity to make a SWIFT transfer via Internet banking. Simply log in to your personal account, find the “International Transfers” or “SWIFT” section, fill in the recipient’s details and the transaction amount, and then confirm the transfer using an SMS code or other form of authentication. The process typically takes a few minutes, and you can track the current status in your personal account or mobile app.

Mobile app

If your bank offers a mobile app with built-in international payment functionality, transferring via phone may be even easier than using a computer. In the app, you enter the same information: recipient details, amount, currency and confirm the transfer with one click. It is essential to consider the bank's amount restrictions and transfer limits. In some cases, additional verification, a declaration, or specifying the purpose of the transfer may be required (especially if the amount is large or intended for specific needs).

In all cases, you need to consider possible fees for currency conversion and the SWIFT transfer itself, which can vary from a fixed amount (for example, 3,000-5,000 tenge) to an interest rate (0.2-1% of the amount). If you are sending money from Kazakhstan abroad, be sure to check with the bank whether you need to declare the amount or confirm the funds source, as this may depend on local legislation and the specific financial institution's requirements.

How SWIFT simplifies international transfers

Let's look at a specific example. A manager of an online store in Kazakhstan ordered a batch of accessories worth $2,000 from a foreign supplier. He logs into online banking, enters the supplier’s SWIFT code and IBAN, pays a 0.5% transfer fee, and clicks “Send.” Within two business days, the money was successfully transferred to the recipient's account, and they immediately processed the shipment of the goods. As a result, the manager received his order on time and did not worry about the security of the payment.

SWIFT remains a key tool for international settlements between banks and companies around the world. If you need to send or receive money from abroad, it will help you do it as simply as possible and in compliance with all necessary requirements. The main thing is to indicate the details correctly, take into account the fees and processing times, so that the transfer reaches the exact address.

Analysis of the international transfer volumes in Kazakhstan in 2024

Below are some data that clearly demonstrate the scale and directions of international transfers in Kazakhstan in the first half of 2024. According to data from the National Bank of Kazakhstan published in an information report, at the end of the first half of 2024, more than 515 billion tenge were transferred through international money transfer systems (IMTS), which is 19% less than the same period in 2023. Notably, 94% of all transactions were non-commercial transfers between individuals, as IMTS are convenient for private transfers without the need to open a bank account.

The majority of such transactions (98%) are cross-border transfers between Kazakhstan and other countries. Of those, 75% are sent abroad, which amounts to 383.8 billion tenge. Moreover, about 87% of all outgoing transfers are made through the Zolotaya Korona system. The average amount of one transaction from Kazakhstan abroad is 330.1 thousand tenge, with the key destinations remaining Russia (31.2%), Uzbekistan (26.8%), Turkey (20.9%), Georgia (7.7%), and Kyrgyzstan (3.6%).

The remaining 23% of the total volume (120.4 billion tenge) is transfers coming to Kazakhstan. A significant portion of incoming payments is processed through Zolotaya Korona and Western Union, with an average transfer amount of 279.3 thousand tenge. The main sending countries are Russia (28.3%), the USA (12.4%), South Korea (11.2%), Uzbekistan (9.7%) and Turkey (7.4%).

These figures highlight the high demand for international transfers and underscore the importance of a reliable system in facilitating financial flows between Kazakhstan and other countries.

Conclusion

Ultimately, SWIFT remains one of the most reliable and convenient methods for making international money transfers, whether for personal or business purposes. It ensures transaction security, provides access to payment services in most countries worldwide, and allows you to make payments without unnecessary borders. The key is to fill in all the details correctly, take into account the fees and follow your bank’s requirements to ensure the funds reach their destination without issues.

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