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LEI vs BIC/SWIFT: What's the Difference?

LEI vs BIC/SWIFT: What's the Difference?

LEI vs BIC/SWIFT: What's the Difference?

Anyone who has made an international bank transfer has used a BIC, often called a SWIFT code. The LEI sometimes gets confused with it, but they identify different things.

What a BIC/SWIFT code is

A BIC (Business Identifier Code), commonly known as a SWIFT code, identifies a bank or branch within the global payment-messaging network operated by SWIFT. Defined by the ISO 9362 standard, it lets a payment message reach the right financial institution. A BIC identifies a bank in a payments context — not a company in a trading context.

What an LEI is

An LEI (Legal Entity Identifier), defined by ISO 17442 and governed by GLEIF, identifies the legal entity itself — any organisation, not just a bank — for financial-market transactions and regulatory reporting. (See What is an LEI code?)

How they differ

  • What they identify: BIC = a bank/branch for payments; LEI = a legal entity for trading and reporting.
  • Standard: BIC = ISO 9362; LEI = ISO 17442.
  • Who holds one: only financial institutions hold BICs; any legal entity can hold an LEI.

A bank typically has both. For most non-bank companies, the LEI is the one that matters.

See also LEI vs VAT number and LEI vs TIN/EIN.

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