What Is a BIC (SWIFT Code) and How Can a Payment Company Obtain One?

In the global payments ecosystem, having a Bank Identifier Code (BIC) is essential for institutions that wish to send or receive cross-border transactions. At Zitadelle AG, we often receive inquiries from licensed payment companies and Electronic Money Institutions (EMIs) about how to obtain a BIC and connect to the SWIFT network. This article explains the process, outlines key requirements, and clarifies the difference between a BIC and SWIFT.

What Is a BIC?

A Bank Identifier Code (BIC) is an internationally recognized code that uniquely identifies financial institutions participating in international transactions. BICs are commonly referred to as SWIFT codes, as they are issued and managed by the Society for Worldwide Interbank Financial Telecommunication (SWIFT).

• BICs are typically 8 or 11 characters long.

• Example: DEUTDEFFXXX (Deutsche Bank in Frankfurt).

Whether a company is handling euro transfers within SEPA or facilitating global remittances, a BIC is required to participate in the SWIFT payment network and to be listed in the SWIFT directory.

BIC vs. SWIFT: What’s the Difference?

While the terms are often used interchangeably, it's important to distinguish between:

In short, BIC is the code, while SWIFT is the system through which payment messages are transmitted. You need a BIC to operate on the SWIFT network.

Who Can Apply for a BIC?

A company must be a licensed financial institution to apply for a BIC. This typically includes:

• Banks and credit institutions

• Payment service providers (PSPs)

• Electronic Money Institutions (EMIs)

• Licensed Virtual Asset Service Providers (VASPs), depending on the jurisdiction

• Money brokers and foreign exchange providers with cross-border capabilities

Regulatory approval to hold client funds and process cross-border payments is typically required as a prerequisite.

How to Obtain a BIC Code: Step-by-Step

1. Confirm Regulatory Status

Ensure your company is properly licensed by a competent financial authority (e.g., FCA in the UK, LFSA in Labuan, FSC in Mauritius, etc.).

2. Apply via SWIFT

You must register through the SWIFT website by submitting an onboarding request.

3. Prepare Required Documentation

Documentation typically includes:

• Company incorporation certificate

• Regulatory license

• AML/CFT compliance framework

• Description of planned services (e.g., cross-border payments, remittance, virtual IBAN issuance)

4. Choose a Connection Method

Payment companies can connect to the SWIFT network in two ways:

• SWIFT Lite2 (cloud-based, ideal for fintechs and EMIs)

• Direct SWIFTNet connection (suitable for banks and high-volume PSPs)

5. Pay SWIFT Fees

Initial registration, annual maintenance, and access fees apply. These depend on the type of connection and volume of messages sent via SWIFT.

6. Receive Your BIC

Once approved, your institution will be issued a unique BIC and appear in the global SWIFT BIC directory.

Why BIC Codes Matter for Payment Institutions

Having your own BIC enables a payment company to:

• Participate directly in SWIFT payments

• Improve credibility with banks and counterparties

• Provide clients with enhanced services, such as issuing virtual IBANs

• Comply with regulatory and correspondent banking requirements

How Zitadelle AG Can Help

At Zitadelle AG, we specialize in supporting licensed payment companies, EMIs, and virtual asset providers in their operational and regulatory setup. Whether you're based in Labuan, Mauritius, Cyprus, or another fintech-friendly jurisdiction, our team can assist you throughout the BIC application process—from regulatory analysis to full onboarding with SWIFT.

If your firm is preparing to expand into cross-border payment services and requires a BIC, contact Zitadelle AG for end-to-end assistance tailored to your jurisdiction, license, and business model.