SWIFT

Annual Review 2021

Contents Introduction

SWIFT is a global member-

We relentlessly pursue operational
4 2021 Highlights excellence and continuously evolve
6 Chairman’s Letter our platform in line with our vision for
8
10
CEO’s Letter
Payments Regional Traffic
owned cooperative and the instant, frictionless payments and more
transparent securities transactions. We
create the standards so that everyone
12
18
SWIFT Strategy: Powering an Instant and Inclusive Future
Innovation at SWIFT
world’s leading provider of in the global community can operate
most effectively. We harness decades
24
28
Diversity & Inclusion and Corporate Social Responsibility
Messaging Facts and Figures
secure financial messaging of expertise in compliance and cyber-
security to enable the community
to build on secure and compliant
30
31
SWIFT Board
SWIFT Executive
services. Our messaging foundations. We work in an agile way,
so that we can rapidly adapt to the
needs of the community and bring new
32
34
SWIFT Governance
SWIFT Oversight
platform, products and ideas to market faster than ever.

36
40
Security Audit and Financial Performance
SWIFT Offices
services connect more than While SWIFT does not hold funds
or manage accounts on behalf of
customers, we enable our global
11,000 banking and securities community of users to communicate
securely, exchanging standardised

organisations, market
financial messages in a reliable way,
thereby supporting global and local
financial flows, as well as trade and

infrastructures and corporate commerce all around the world.

Headquartered in Belgium, SWIFT’s

customers in more than 200 international governance and oversight
reinforces the neutral, global character

countries and territories. of its cooperative structure. SWIFT’s

global office network ensures an active
presence in all the major financial
centres.

2 SWIFT Annual Review 2021 SWIFT Annual Review 2021 3

2021 highlights

Reach
Connecting the global financial industry
Volume
The way the world moves value
Growth
Constantly innovating and evolving
Resilience
Unrivalled security, reliability and resilience

11,000+
Institutions connected to SWIFT
10.5 billion+
FIN messages (year)
11.2%
FIN traffic volume growth
99.999%
SWIFTNet availability

200+
Countries and territories
66%
42 million
Increase in FIN traffic on peak day
over the past five years 99.995%
40,000
Active payment routes
Average daily FIN messages FIN availability

120
Customers signed up for SWIFT Go

4 billion
Accounts
50.2 million 426
28%
Record Daily FIN traffic Business continuity exercises
(30 November 2021)
235+
Market infrastructures
Growth in API calls made over
the SWIFT platform

4 SWIFT Annual Review 2021 SWIFT Annual Review 2021 5

Chairman’s letter

SWIFT continues to be a strong Not all financial institutions will move

to ISO 20022 at once, however. So to
on numerous proofs of concept, and
is closely examining emerging trends
As the financial industry strives to
address external threats by ensuring
partner in helping the financial help banks ensure a smooth migration
and enable a period of coexistence,
in areas such as Central Bank Digital
Currencies (CBDCs), tokenised assets,
compliance, managing risk and
constantly raising the bar on security,
community navigate turbulent SWIFT has embedded in-flow translation and the linking of market infrastructures SWIFT remains an integral partner

times. between different standards. This

means that users who move to the
to explore how it can support
interoperability and enable the seamless
through its Customer Security
Programme (CSP), which continues
data-rich ISO 20022 standard can start flow of value worldwide, continuing to to deliver immense value and tangible
to immediately realise its benefits and make it simple for banks to access and results. Securing SWIFT and its
others can migrate at their own pace benefit from these new innovations. community has never been as vital as it
through 2025. is today.
Yet SWIFT is not complacent and
In parallel, SWIFT is creating a new recognises it must continue to innovate, These are challenging and complex
transaction manager that will leverage develop, and deploy new and value- times, and SWIFT continues to
rich data to orchestrate flows for a added services. SWIFT is doing this navigate an unpredictable geopolitical
reliable and consistent end-client with a sense of urgency, but in an environment. SWIFT’s global neutrality
experience. This represents an important orderly fashion that enables innovation is fundamental, and although it must
shift from sequential messaging to full to happen securely and at scale, so act in accordance with appropriate law
Yawar Shah transaction management and a step- that when a technology demonstrates when required, it remains true to its core
Chairman of the Board change for cross-border payments promise we can harness our efforts mission to be a neutral provider to the
across the SWIFT network. to solve real-world challenges. These global financial industry.
are the constructive challenges we set
Becoming even more fit ourselves as your global cooperative. A strong, vibrant
Over the last two years, the world Execution of the SWIFT strategy 2021 saw the delivery of key strategic
1
for the future community
has undergone an unprecedented for instant and frictionless developments such as SWIFT Go and Remaining globally
transformation – shaped both transactions, including ISO 20022 Payment Pre-validation, services at the
SWIFT exists to serve the financial relevant, geopolitically I would like to thank the SWIFT Board
by the pandemic and increasing adoption and the rollout of the heart of this vision that enable financial
geopolitical tensions. Despite this, transaction manager. institutions to enhance customer
community, and as financial institutions neutral, and operationally for its active governance; and I also
look to the future, SWIFT is innovating resilient and secure thank the National Member Groups and
the financial services industry has experience, increase efficiency and grow
collaboratively alongside them. the entire SWIFT community of banks
proven itself to be highly adaptable, 2 Becoming even more fit for their business, including in the rapidly
Robust oversight by the G-10 central for actively engaging with us. Your
demonstrating great resilience the future with an emphasis expanding consumer and small business
As an industry-owned cooperative, banks and a supervisory Board that collaboration and engagement ensure
under extraordinary pressure, and on innovation, accelerated segments. At the same time, SWIFT is
SWIFT is uniquely placed to create the provides the appropriate duty of care that ours remains a vibrant and resilient
an ability to innovate during difficult development and, rapid deployment supporting the major shift the industry
next generation foundations of financial ensures SWIFT’s core remains truly community, even during challenging
times. and adoption. is making to ISO 20022 for payments
services, responsibly. It doesn’t carry global. SWIFT holds its oversight and times. I would also like to thank all
in 2022. This is a big lift for banks, with
this out for its profit, but rather to deliver governance structure, which supports SWIFT employees for their diligence and
So too has your cooperative. SWIFT 3 Remaining globally relevant, multi-year preparations in full swing. But
a thriving financial ecosystem and innovation in a way that prioritises commitment.
is committed to empowering a thriving geopolitically neutral, and there is no doubt that it provides the
enable the long-term success of all its security, reliability and resilience, in high
bank-centric ecosystem and enabling operationally resilient and foundations needed for the future.
members, across all market segments regard. Finally, I do this as a global citizen, with
financial institutions – all of them – to secure in an increasingly dynamic
and across all regions. a belief that we as a global community
capitalise on new opportunities to offer environment. ISO 20022 is set to drive increased
As a global and systemically important have more in common with each other
best-in-class services to their own automation and innovation, better
In its position at the heart of the financial organisation, nothing is more important than some of our national or cultural
customers. Execution of the SWIFT customer experiences and reduce
industry, SWIFT also plays a vital role than SWIFT being resilient, secure differences. By working together as
strategy processing exceptions. This will allow
in identifying and evaluating emerging and operationally dependable. While financial institutions, we can achieve
There are three major imperatives for financial institutions to benefit from
technologies. And this work is more new capabilities are being delivered more collectively, even while competing.
SWIFT that I would like to highlight. SWIFT has an ambitious vision operational cost savings, risk reduction,
important than ever at this pivotal at great speed, their execution must
These reflect the work ongoing over the and strategy to enable instant and diversify their product offerings and
point in the financial industry’s digital be supported by unwavering risk and Yawar Shah
past year and set the direction for the frictionless payments and securities ultimately grow revenues. And the
transformation. control. This is a key focus for SWIFT, the Chairman of the Board
years to come: transactions from account to account benefits extend all the way to end-
Board and the Overseers, and SWIFT May 2022
anywhere in the world – and it is laser- customers too, with better data that can
SWIFT is actively working across the has clearly defined risk management
focused on its execution. improve their processes as well.
industry with banks, central banks, processes in place that are essential for
market infrastructures and regulators the execution of its strategy.

6 SWIFT Annual Review 2021 SWIFT Annual Review 2021 7

CEO’s letter

2021 was another challenging 2022 is also a pivotal year for SWIFT
and our community as it will mark
We’re also exploring how we can
enable interoperability between
with all applicable sanction laws of the
European Union, and we continue to
year. But that hasn’t slowed us the start of ISO 20022 adoption for
cross-border payments and reporting
participants and systems during the
transaction lifecycle of tokenised assets.
keep our SWIFT community regularly
updated on developments.
down as we continue to execute and preparation is well underway. ISO Working collaboratively with industry

our strategy to deliver instant 20022’s rich data provides the future
foundation for international payments
participants, we’re developing the
standards necessary to avoid market
As we continue to navigate the
complexities of Covid-19 and the
and frictionless transactions. and we are working closely with our
community to prepare for go-live in
fragmentation and encourage growth
in this emerging asset class, without
evolving geopolitical landscape, our
priority is on supporting the community.
November 2022. Tools such as our compromising on security and trust. Not just in keeping the ecosystem
In-flow Translation service, delivered secure and resilient, but also preparing
a year in advance to provide sufficient As we’ve seen time and again, when for the evolution of new technologies
time for testing, are essential to support our community comes together, we can and building the infrastructure needed
interoperability and allow financial achieve far more than could ever be to ensure an instant, frictionless and
institutions to migrate to the new done in isolation. That’s why we have interoperable future.
standard at their own pace. also been working collaboratively with
the Bank for International Settlements, As a cooperative, we’re also focused
From November 2022 onwards, and the Committee on Payments on how we deliver for the global
Javier Pérez-Tasso SWIFT will also be introducing its new and Markets Infrastructures to solve community sustainably. Our Corporate
CEO platform – laying down transaction common challenges in the payments Social Responsibility programme
management capabilities to drive instant landscape, and our strategic roadmap addresses eight of the UN Sustainable
and frictionless and to further leverage supports these important partnerships Development Goals (SDGs), including
the business value of rich data. and our shared goals. SDG 13 on Climate Action. In 2021, on
behalf of SWIFT, I signed the Science
Accelerating innovation, Our collaboration also extends to Based Targets initiative, setting goals
responsibly market infrastructures, with whom across the organisation to reduce our
we are forging strong partnerships carbon footprint. We’re also committed
With the last two years Laying strong commitments. Our vision for an
In defining the next phases of our to enable seamless cross-border to launching and strengthening
characterised by uncertainty, I’ve foundations innovative, low-value payments
future vision, we’re strongly focused transactions. Most notably in 2021 is initiatives to foster an open and inclusive
been impressed by the resiliency service became a reality when we our partnership with EBA CLEARING, culture within SWIFT, to attract diverse
on accelerating innovation and
of our people, communities and When it comes to operational launched SWIFT Go in July. SWIFT The Clearing House (THC), and leading new talent and advance diversity and
enabling back-end interoperability in an
industry working together against excellence, we’ve continued to maintain Go revolutionises the experience of financial institutions to pilot a new inclusion across the financial industry.
increasingly complex and fragmented
sometimes great odds to make a exceptional standards of system small and medium-sized businesses instant cross-border payments service.
world. SWIFT is a bridge across
real difference. availability, security, and reliability. This and consumers when sending low- All of this is made possible with strong
geographies, systems, accounts and
comes at a time of robust traffic growth value cross-border payments with their
technologies. We want to make sure Supporting the financial collaboration with our global community,
We’ve seen that for example, through banks. We are currently focused on
during 2021. Traffic volumes across that value in all its forms can move community the guidance of our Board, and the
major global efforts to slow down the our network grew by more than 11% rapid community adoption as it enables consistent commitment of our leaders
around the world quickly, seamlessly
pandemic and vaccinate populations and we reached a new milestone with banks to retain and grow market share and teams. As we continue to engage
and securely for as many people as SWIFT is more than a network – we’re
worldwide. And in the financial industry a peak of 50.2 million messages in a in this highly competitive space. with the community in this pivotal year
possible. an ecosystem. And the value of the
we’ve seen a quantum leap in the shift single day in November. This impressive for the industry, I look forward to making
whole is bigger than the sum of its
towards supporting digital businesses. increase shows the strong foundations We also launched our Payment Pre- major progress in realising our vision
This is the basis of our work on Central parts. We drive industry standardisation
In the SWIFT context, I’ve also been we have in place for our community validation service, offering real-time, together.
Bank Digital Currencies (CBDCs) and put in place the risk and control
very impressed and humbled by the as we enter into the next phase of upfront payment validation to reduce
and new digital assets – ensuring frameworks that enable the efficiency,
levels of commitment, collaboration, our strategy to enable instant and payments friction through errors, Javier Pérez-Tasso
that if they are adopted, they work interoperability, security, and innovation
and sense of community shown by frictionless transactions. exceptions and costs caused by wrong CEO
seamlessly within the global financial banks and their customers rely on.
our teams. Even under the most or missing beneficiary information. May 2022
system. In 2021, we kicked off a set of
challenging circumstances, we remain And speaking of our strategy, we’ve SWIFT Go and Payment Pre-validation
experiments to explore the role SWIFT Towards the end of 2021, we saw a
focused as one team on delivering made significant progress with the are key pillars of our strategy, and their
could play in a world with CBDCs. Our significant rise in geopolitical tensions,
the unwavering operational excellence roll out of key services that meet adoption and usage is a major priority
trials demonstrate that we can achieve and this has intensified in 2022. Our
and industry-shaping innovations our our delivery milestones and industry for the industry in the year ahead.
interoperability between CBDCs and response to recent geopolitical events
customers rely on, every day.
existing payments systems. reflects our position to fully comply

8 SWIFT Annual Review 2021 SWIFT Annual Review 2021 9

Payments regional traffic

2021 average daily FIN messaging

volume (in Kmsgs and growth versus
2020)
This traffic compares year-on-year growth
rates for regional payment flows.
SWIFT observed traffic growth in all regions
and for all routes between regions. Positive Americas EMEA APAC
intra-regional traffic growth is recorded in all Sent: 4,059 Kmsgs (+11.5%) Sent: 8,679 Kmsgs (+10.4%) Sent: 1,956 Kmsgs (+8.9%)
three regions. EMEA intra-regional payments Received: 3,708 Kmsgs (+9.5%) Received: 8,990 Kmsgs (+11.7%) Received: 1,997 Kmsgs (+7.1%)
traffic represents the highest share of the
volume. Intra-Americas: 1,873 Kmsgs (+10.3%) Intra-EMEA: 7,048 Kmsgs (+11.3%) Intra-APAC: 892 Kmsgs (+7.0%)
Sent to APAC: 759 Kmsgs (+9.3%) Sent to APAC: 346 Kmsgs (+2.8%) Sent to EMEA: 514 Kmsgs (+10.7%)
Figures are based on user-to-user live payment traffic. Sent to EMEA: 1,427 Kmsgs (+14.4%) Sent to Americas: 1,285 Kmsgs (+8.1%) Sent to Americas: 550 Kmsgs (+10.4%)

10 SWIFT Annual Review 2021 SWIFT Annual Review 2021 11

 In 2020, we announced our
vision to enable instant and
frictionless transactions
from end-to-end anywhere
in the world. In 2021, we
moved rapidly to make
that vision a reality.

SWIFT strategy:
powering an instant
and inclusive future
12 SWIFT Annual Review 2021 SWIFT Annual Review 2021 13
Transforming In 2021, we introduced SWIFT Go transaction management facilitating change and driving progress

transactions
to enable banks to win and grow capabilities, which is a core pillar in the global securities markets. To this
market share in the rapidly expanding of our strategy to enable instant end, as part of our smarter securities
consumer and small business payments and frictionless payments and strategy, we’re developing a new
segments. SWIFT Go enables banks to will take SWIFT’s capabilities way service that will provide end-to-end
provide a streamlined experience with beyond messaging. The platform tracking of securities transactions for

in 2021 and
fee predictability, in-flight tracking and will orchestrate interactions between the first time ever. The solution will build
a fast service that matches domestic financial institutions and other on the ISO 23897 Unique Transaction
payment schemes – all underpinned by participants to minimise friction, Identifier (UTI) to enable all parties
SWIFT’s strong security and vast reach. optimise speed and provide to see the status of the transaction
The service saw rapid uptake in 2021, transparency and predictability from one in real time, ensuring transparent

beyond
with over 100 banks signed up and account to another, virtually anywhere. information throughout its lifecycle.
11 live, and more expected in 2022. We’ll be piloting the service in 2022.
The initial launch of the new SWIFT
We launched our Payment Pre- platform is set for Q4 2022, with traffic As the payments industry starts to use
validation service to remove one of the expected to ramp up in 2023 and the richer data enabled by ISO 20022,
leading causes of friction in international beyond. Over time we will embed all there comes an associated need for
payments – incorrect payee information. our supporting services too, including increased and enhanced compliance
More than 100 banks are already using sanctions screening, anomaly detection, measures that adequately support
the service, which introduces upfront data analytics, tracking and exception instant and frictionless payments. We’re
checks for typos, misspellings and other management. This will ensure every helping the community improve its
entry errors that are a main cause for SWIFT user can rely on safe, secure and screening standards whilst addressing
delays. Real-time account validation compliant payments, and pass these these challenges through initiatives
enables increased efficiency for banks, such as the Transaction Screening
faster funds on account for customers Service. Launched in 2021, this is
and better defence against fraud. In 2021, we began a fully managed, securely-hosted
service that screens users’ incoming
We are also helping our community putting in place and outgoing messages against
prepare for the start of ISO 20022
adoption for cross-border payments
the building blocks up-to-date sanctions lists to alert
them to any suspicious activity.

Across all business areas – payments, securities,

and reporting in 2022 with the
introduction of a new In-flow Translation
for an instant and
In 2021, we began putting in place
financial crime compliance, cybersecurity, service. Launched in November 2021, frictionless future the building blocks for an instant and
In-flow Translation is key to enabling frictionless future of payments. We
technology, innovation and others – we’re putting in interoperability between users of of payments rapidly executed against a strategic
place the strong foundations our community needs different standards during the three- blueprint endorsed by the SWIFT
year coexistence period running to Board and we took yet another
to thrive today and in the future. 2025. This service will enable financial benefits on to their customers as well. step towards seamless, end-to-end
institutions to realise the benefits of SWIFT continues to play a vital role in transaction management in payments
Our strategy is paving the way for part of this instant and frictionless rich data when they migrate to ISO the global securities markets, facilitating and securities processing. In 2022,
financial institutions to enhance future, ensuring accessibility, inclusivity 20022, even if their counterparts have secure and efficient transactions, and we have ambitious plans to accelerate
customer experience, deliver exciting and ubiquity of our solutions is a top not yet adopted the standard. More securities messages account for around adoption of our new services across
new services, leverage rich data, and priority. than 80% of the community is now 50% of the total traffic on the SWIFT the global financial community, as we
embrace emerging innovations such engaged in readiness activities for the network. We are a trusted partner welcome a new era of possibilities in
as Central Bank Digital Currencies Simply put: we’re delivering the Shaping the future start of the coexistence period and for over 6,000 organisations trading cross-border payments and securities.
(CBDCs) in payments and tokenised underlying infrastructure that enables of payments and we are encouraging the community securities and we are committed to
assets in securities. financial institutions to power a whole
securities to begin testing as soon as possible helping capital markets participants
range of new opportunities for their to ensure readiness for November. to increase value for their customers,
We’re delivering at pace and creating customers. And we want our entire work more efficiently, comply with fast-
a platform for innovation. And because community to be a part of it. Play video  → In parallel, we are building our new evolving regulations and reduce costs.
we want our entire community to be state-of-the-art platform with SWIFT, together with our community, is

14 SWIFT Annual Review 2021 SWIFT Annual Review 2021 15

SWIFT payments are ISO 20022 promises Enabling efficient Richer data for better Keeping the core Purpose-led thought
leadership
fast and getting even opportunities for early communication for the compliance resilient and secure
faster adopters in 2022 financial world SWIFT has made strong headway
in our plans to facilitate instant
transactions from one account to
another anywhere in the world since
By the end of 2025, it is anticipated that Across financial services, and in the As the industry moves towards adopting Underlying all this and much more is the announcement of our strategic
priorities in 2020. We continue to
the majority of domestic and regional securities industry, a common language ISO 20022, compliance will also need to our unwavering focus on the availability
In a paper published earlier this actively explore new frontiers of
high-value payment systems will have is essential for the efficient exchange evolve to support instant and frictionless and security of our network and collaboration with the global financial
year, the Committee on Payments
migrated to the ISO 20022 format of data, and SWIFT is committed payments. SWIFT’s sanctions screening we concluded 2021 with 99.995% industry, and we believe that a robust
and Market Infrastructures (CPMI) thought leadership programme
for financial messaging.The SWIFT to supporting this standardisation initiatives are helping the community availability achieved on core messaging
reported that the SWIFT community goes a long way in bringing our
community, with support from SWIFT, within the industry. By exchanging reduce friction by improving their service. The SWIFT Customer Security communities together to serve this
has improved the flow of money
has also made the decision to adopt unambiguous, machine-friendly data, screening standards, adopting ISO Programme (CSP) continues to deliver end.
around the world. The analysis
ISO for cross-border payments and institutions will be able to benefit 20022 screening practices and evolving significant results.
found that sending payments over Find out more about our thought
SWIFT is fast, with a cross-border reporting starting in November 2022 from greater automation, lower costs their processes. leadership initiatives:
with the adoption period running until and reduced risk. We are working to The CSP is a well established
payment taking a median time of
November 2025. achieve this by creating and maintaining In July 2021, SWIFT launched its programme that continues to innovate
just 90 minutes. In addition, the Read the joint paper from
standards for financial messaging and Transaction Screening Service to and deliver value and tangible
majority of payments were settled SWIFT and Accenture on
This will transform the way cross-border reference data. help users who are looking to better results. The last five years have seen Making CBDCs work for
within minutes or even seconds
payments messages are exchanged, harness ISO 20022’s additional data consistently high attestation and international payments
on the fastest routes, where well-
with ISO 20022 unlocking major and We have been working with our user fields, improve filter efficiency and compliance rates by a community of
established direct links already exist
effectiveness. This allows financial highly engaged users committed to Read the paper on Digitising
between countries. new opportunities. First movers will be community to specify and publish
stopping cyberattacks in their tracks. trade: the time is now
able to capitalise early on the benefits market practices, and ensuring that the institutions to securely screen incoming
of richer data, while others can adopt standards we maintain evolve and meet and outgoing messages against up- In 2021, 89% of our customers,
Intermediary banks can process Read the paper on Realising
it at their own pace. SWIFT is there to changing market needs. Key initiatives to-date sanctions lists, providing an representing over 99% of SWIFT traffic,
78% of cross-border payments the power of APIs in
support the community in this transition. in 2021 include: alert if anything suspicious is detected. attested to their compliance with the financial services
in less than five minutes. When
For institutions that are yet to make cybersecurity controls mandated by the
delays do occur, the report found,
With more and better structured data • Publishing regular updates to the move to ISO 20022, Transaction Customer Security Controls Framework Read the paper from SWIFT
it is usually on the beneficiary leg,
in an ISO 20022 message, financial the Cross Border Payments and Screening prepares the ground for a (CSCF). This is along with over 94% of Institute on Open banking:
where only 33% of payments are A catalyst for reinvention
institutions will now be able to deliver Reporting Plus (CBPR+) handbook smooth migration of their messaging attested customers who also submitted
processed in under five minutes.
innovative services, provide better • Supporting the securities flows. an independent assessment for the
These longer processing times Read the paper from SWIFT
customer experiences, and benefit from market on the Central Securities first time, helping to ensure the veracity
are most frequently due to capital Institute on The future of
fewer processing exceptions that create Depositary Regulation (CSDR) and of attestations. This requirement,
controls and associated compliance Transaction Monitoring:
friction and delays. These benefits also the Shareholder Rights Directive under the Independent Assessment better ways to detect and
processes, limited operating hours
extend to the corporate customers of (SRD II) Framework, (IAF) became effective in disrupt financial crime
and the use of batch-processing
banks who will soon be able to improve • Publishing a paper on how we’re 2021.
systems, which were also found Watch replays from the
to impact the speed that funds are reconciliation within their back-end developing APIs for different
Inside Innovation events
delivered at. systems, for example, with simpler customer segments
matching of invoices to payments. • Publishing guidelines both Watch replays from the
SWIFT’s new platform will play a key on how to screen ISO Smarter Securities events
role in enabling instant cross-border While these changes will require the 20022-based transactions; and
payments in the future. payments industry to transition to on ISO 20022-based remittance
ISO 20022 collectively, we recognise information for the US market
that not everyone will transition at the • Launching an accelerator package
same time. As part of our commitment to support market infrastructures
to support the entire community, we and their communities in the
are embedding an In-flow Translation adoption of ISO 20022
service to facilitate interoperability
between the ISO 20022 and MT
standards. This way, users who move
to the data-rich standard will be able to
immediately realise its benefits, while
others may migrate at their own pace
through 2025.

16 SWIFT Annual Review 2021 SWIFT Annual Review 2021 17

 Building the future
of global financial
transactions, together

Innovation
at SWIFT
18 SWIFT Annual Review 2021 SWIFT Annual Review 2021 19
Innovation Linking market
infrastructures
Preparing for the future:
CBDCs
Delivering innovation
that generates business
value

at SWIFT Linking market infrastructures and financial

institutions is a fundamental pillar of our
strategy, and one of the key building
blocks in the Committee on Payments
and Market Infrastructures’ (CPMI) global
We’re continuing to prepare for the
future. As part of our innovation agenda,
we’re running a number of experiments
to explore how digital assets could be
used to solve real-world challenges
At its core, innovation at SWIFT aims to
accelerate and de-risk the creation of
new solutions that deliver value to our
customers and the wider industry.

roadmap on enhancing cross-border and further transform financial services. In 2021, SWIFT conducted over 20
payments. In 2021, we kicked off a proof- In 2021, we explored the roles SWIFT product and technology innovation
of-concept with EBA CLEARING and could play in a world with CBDCs so we sprints, which saw teams of SWIFT
The Clearing House (TCH) – and seven can seamlessly support our community. employees working on a set of specific
participating banks – demonstrating the We stand ready for the next generation tasks and deliverables towards a
feasibility of synchronising settlement of money and our experiments aim technology goal. Eight of these
across existing instant payment systems. to demonstrate that we have the sprints are now in the process of
The interlinking of domestic payment potential to link CBDC and real-time implementation.
systems will require strong levels of gross settlement (RTGS) networks and
interoperability to enable further innovation facilitate the settlement of CBDCs across For instance, SWIFT’s innovation team
and the linking of additional systems. borders. recently conducted a sprint that focused
As a neutral party with worldwide reach on enhancing the user experience
that works with players from across the We’re also working with leading industry of our product portfolio. This sprint
financial ecosystem, SWIFT is uniquely players to explore how SWIFT could act resulted in the adoption of a Digital
placed to support initiatives such as the as an interconnector to link up multiple Adoption Platform (DAP) that provides a
links between TARGET Instant Payments securities tokenisation platforms and structured, guided walkthrough for new
(TIPS) and BUNA (the cross-border and various payment types throughout the product users. The DAP is currently
multi-currency payment system owned transaction lifecycle of a tokenised being piloted with SWIFT’s Transaction
by the Arab Monetary Fund), and the asset. In 2022, we are planning a series Screening Service, and if successful, will
immediate cross-border (IXB) service of experiments leveraging our trusted be rolled out across our wider product
between EBA CLEARING and TCH. role as a central platform to explore the set.
Innovation is part of SWIFT’s DNA. For nearly 50 issuance, delivery versus payment (DVP),
and redemption processes, to support
years, we have brought together financial institutions a frictionless and seamless tokenised
from around the world to develop solutions that asset market.
benefit the entire global financial system. In response to the growing momentum
towards CBDCs globally, we partnered
Yet no business can sit still in an environment with Accenture on an innovation project
to assess the impact of CBDCs on
characterised by unprecedented market disruption
global transactions, and roles that
– fuelled by changing customer expectations, SWIFT could play to seamlessly support
growing competition and new technologies that our community. SWIFT subsequently
published a paper on CBDCs in May
challenge existing business models. So as we deliver 2021, which will guide the way forward
our strategy, we continue to look to the horizon on how SWIFT engages with, and
enables, new forms of regulated money.
to prepare for the opportunities, changes and
challenges that come next – to harness the power In 2022, SWIFT will launch the next
of new technologies and business models to both phase of its experimentation, exploring
the role it could play in linking together
improve our existing product portfolio and develop the domestic CBDC networks in
the next generation of SWIFT services. development across the world.

20 SWIFT Annual Review 2021 SWIFT Annual Review 2021 21

Delivering a state-of-the- Pioneering tokenised Bringing the financial
art scale AI platform asset trials
community together
In 2021, SWIFT kicked off a multi- In 2021, we also announced a
online
partner collaboration with some of the partnership with key customers and
world’s leading technology providers partners to help increase speed and
to develop an enterprise scale artificial efficiency in the post-trade processing Sibos 2021 Discover Perfect Pitch
intelligence platform to help unlock of tokenised assets. To be conducted
complex industry challenges whilst in 2022, the experiments will trial In its second year, digital Sibos Pioneering innovators from around the
preserving user privacy. Set to be the use of the SWIFT platform as an was attended by more than 19,000 world participated in the second edition
launched in 2022, the new platform interconnector – linking up multiple registered delegates and 114 partners of a digital fintech pitch to showcase
will enable SWIFT to embed AI- tokenisation platforms and various from nearly 200 countries. Under the their products and services to the
enhanced detection into products such payment types throughout the theme “Recharging Global Finance”, Sibos community. Fintechs competed
as Payment Controls and Payment transaction lifecycle of a tokenised the programme explored the trends across two streams – “Leadership” and
Pre-validation, and facilitate the future asset. SWIFT’s role will be to connect and ideas shaping the future – from the “Partnership & Collaboration”. Winners
adoption of artificial intelligence in all entities as efficiently as possible with rapid pace of digital acceleration to the – Quantexa and Partner Hub – were
additional use cases such as sanctions a view to enabling customers to grow intensifying focus on sustainability – and selected by industry experts.
screening and business operations. their tokenised asset businesses. looked at how the financial industry is
preparing today for the client, regulatory SWIFT Institute
Sibos 2021: What we and societal demands of tomorrow.
have learned Innovative collaboration was a highlight For the first time in India, the 2021
of the programme, which sought to SWIFT Institute Student Challenge
bring together leading industry minds saw teams present solutions aimed at
to discuss and debate key challenges, helping to increase adoption and use of
Play video  → agree a way forward and deploy digital trade transactions during Sibos.
solutions through a series of industry The winner, Team Phoenix, focused
initiatives. their research on minimising the use
of paper-based trade, while mitigating
Sibos 2022 will take SWIFT Hackathon risk of paperless trade using blockchain
place in person in technologies.
Amsterdam from 10 to More than 180 developers from 25
13 October. organisations joined forces to showcase
their solutions around two challenges:
Register now → “Enhancing the accuracy of anomaly
detection in payments” and “Building
‘synthetic’ data sets required for AI-
based product development, whilst
protecting privacy”. The challenge
focused on collaborative innovation
to deliver on the promise of Artificial
Intelligence with participants presenting
their solutions to a judging committee of
industry professionals.

22 SWIFT Annual Review 2021 SWIFT Annual Review 2021 23

 Working with and for
financial communities
across the globe

Diversity & Inclusion

and Corporate Social
Responsibility
24 SWIFT Annual Review 2021 SWIFT Annual Review 2021 25
Diversity &
Giving back Humanitarian crisis of women in leadership across the
organisation. On International Women’s
Our Corporate Social Responsibility We continued our financial support to Day, we launched a programme of
(CSR) strategy focuses on the UN Médecins Sans Frontières’ emergency broad empowerment workshops for

Inclusion and
Sustainable Development Goals, funds, concentrating our support on the underrepresented groups across SWIFT
which look at reducing carbon Covid pandemic in India. Additionally, over the following six months.
emissions and supporting education following the devastating 2021 summer
and financial inclusion. floods in Belgium and Northern Europe, To offer further support to people in
SWIFT donated to local charitable a minority at SWIFT, we launched a

Corporate Social
Reducing the organisations. Global Mentor Programme open to
environmental impact of all SWIFT staff.

our company Promoting Diversity,

At Sibos 2021, 40% of speakers at
Equity & Inclusion
Sibos were female. The Women of
In 2021, SWIFT signed its commitment

Responsibility
Sibos networking event featured
to the Science Based Target initiative SWIFT aims to promote an inclusive
leading female speakers from the
and pledged to set science-based culture in which everyone is involved,
world of payments and environmental
emission reduction targets and take respected and connected regardless of
innovation.We held high profile debates
action to limit global warming to below their differences. Diversity and inclusion
on diversity within the industry, and
1.5°C by 2030, in line with the 2015 are integral to our culture of excellence,
the importance of diversity, equity and
Paris Agreement. innovation and community. Our Diversity
inclusion as a marker for business
and Inclusion strategy is led from the
credibility.
Using the Green House Gas Protocol top of the organisation and spans
as a guideline, we used carbon offsets five pillars of focus: gender, disability,
SWIFT continued its virtual Sibos
to compensate for our CO2 emissions ethnicity, age and sexual orientation.
Talent Accelerator Route (STAR)
in 2020. We also optimised our office Through a range of strategies and
Scholarship programme at Sibos in
space and installed both insulation and initiatives, we work hard to ensure
2021, giving 25 high potential women
solar panels in our offices. We continue SWIFT is inclusive for everyone.
from countries around the world
to encourage staff to opt for greener
access to the thought leadership and
travel and commuting solutions. To raise awareness, SWIFT held internal
networking opportunities that Sibos
global events for Black History Month,
provides.
Additionally, we funded renewable International Women’s Day, International
energy and nature conservation projects Day for Disability, and Pride.
in Eastern Europe, the Greater Mekong
region and the Amazon rainforest, and We integrate diversity and inclusion
tree planting initiatives across the world. throughout our hiring and talent
management practices across the
Our business is global. SWIFT works with and for Supporting those in need organisation and in 2021, trained our
financial communities across the globe. We know people managers in unconscious bias,
We continue to support children in inclusive leadership and equitable hiring
this is a privilege as well as a responsibility, and we need and provide quality education practices.
are committed to making a positive impact wherever to underprivileged communities with
organisations around the world. We also We continued our partnership with
we can. We are working to make a more positive Diversicom, a charity that provides
sponsor a Sustainable Future Prize,
impact on the communities where we operate and which encourages fresh thinking and access to work for people with
do business. greater awareness among young people disabilities. We also organised
on the benefits of ethics in finance. internships at our head office that aim
to open up SWIFT to a wider group of
We integrate social, environmental, ethical, and Our staff volunteer at charitable applicants with disabilities.
organisations that work with orphans,
human rights concerns into our operational strategy. children with a long-term or terminal To further support and advance gender
Education, diversity, sustainability, community illness, disabled and autistic children, diversity, SWIFT launched its Gender
victims of war, the homeless, and Equality Network and put in place a
outreach—our belief in the importance of these
children living in slums. corporate KPI to increase the numbers
issues is embedded in our company mindset.

26 SWIFT Annual Review 2021 SWIFT Annual Review 2021 27

Messaging facts and figures

FIN Payment messages Securities messages FileAct InterAct

Financial institutions use FIN for individual, Payments message volumes recorded Securities traffic grew by 11.9% in 2021. This FileAct is an advanced, secure and resilient InterAct is a versatile protocol that supports
richly featured messaging, which requires a 11.3% increase. This performance was driven by market volatility and permanent file transfer protocol tailored to the need of different types of usage and business. It is
the highest levels of security and resilience. corresponds to recovering GDP growth and high volumes of securities settlement customers to exchange freely formatted primarily used by market infrastructures to
Features include validation to ensure international trade following the Covid-19 instructions. November 2021 was the highest transactions in bulk mode. It is primarily support ISO 20022 messaging. Our Store &
messages conform to SWIFT message pandemic. As usual, the highest performing performing month in terms of volume, with used to exchange large batches of low value Forward version of InterAct has been enriched
standards, delivery monitoring and month volume-wise was December with 22.3 million messages each day on average. payments and the corresponding reporting. to provide the same level of functionalities as
prioritisation, message storage and retrieval. Payments message volumes reaching a new FIN.
all-time high of 20.5 million messages per day FileAct recorded 21% traffic growth in 2020,
In 2021, more than 10.5 billion FIN messages, on average. when on average over 34 million KCharacters InterAct traffic growth dropped 17% in 2021,
or an average of 42.0 million messages per were sent over the SWIFT network per day. with an average of 7.8 million messages per
day, were sent over SWIFT network. This is Over two thirds of the growth was driven by day. The decline is due to the migration of
an increase in total FIN volume of 11.2% from TARGET2-Securities traffic, mainly due to the some reporting TARGET2-Securities flows
2020. migration of reporting flows from InterAct to from InterAct to FileAct.
FileAct. There was also an increase in bulk
As a result of the pandemic and highly domestic low-value payments in line with
volatile markets, SWIFT recorded three FIN historical statistics.
peak days in 2021. On 30 November more
than 50.2 million messages were sent over
the SWIFT network. This peak was the result
of strong Securities volumes combined with
growth in Payments instructions plus the
typical end of month payments reporting.

FileAct volume in billions of characters 8,651 InterAct messages (*) 1978 million
FileAct volume in millions of files 238 Live and pilot users (**) 2,051
Live and pilot users 3,269 Services using InterAct (*) 67
Services using FileAct 59 (*) including CREST
(**) including CREST, excluding RMA

FIN Messages (millions) Payments Messages (millions) Securities Messages (millions) Number of characters (billions) Messages (millions)
Annual growth (%) Annual growth (%) Annual growth (%) Annual growth (%) Annual growth (%)
6,632 7,192 8,004 8,604 9,527 10,594 3,234 3,597 3,967 4,197 4,313 4,799 3,019 3,233 3,636 3,969 4,710 5,269 4,300 5,138 5,487 5,627 7,161 8,651 1,181 2,180 2,444 2,495 2,391 1,978

6.9% 8.4% 11.3% 7.5% 10.7% 11.2% 7.2% 10.9% 10.3% 5.8% 2.8% 11.3% 6.7% 7.1% 12.5% 9.2% 18.7% 11.9% 29% 19% 7% 3% 27% 21% 61% 85% 12% 2% -4% -17%

2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021

28 SWIFT Annual Review 2021 SWIFT Annual Review 2021 29

SWIFT Board SWIFT Executive

Yawar Shah Yaosheng Fan Lynn Mathews Javier Pérez-Tasso capabilities and security, with a focus on Cate Kemp
Managing Director, Citi, USA and General Manager, Head Office Clearing Chairman of the Australian National Member Chief Executive Officer resilience, trust and innovation Cheri brings Chief Risk and Control Officer
Chairman of the Board of Directors, SWIFT Department, Bank of China, China Group, Australia more than 30 years of experience in strategy,
Javier was appointed Chief Executive Officer policy, and operations, spanning the financial, Cate was appointed Chief Risk and Control
John Ellington Stefano Favale Ole Matthiessen at SWIFT in July 2019. In this position, software, consulting and government sectors. Officer in May 2021,with responsibility for
Director, Shared Services, NatWest Group, Global Head of Global Transaction Banking, Managing Director, Global Head of Cash he has led the company’s new strategy Previously, she was Managing Director and building on SWIFT’s strong foundations to
United Kingdom and Deputy Chair of the Intesa Sanpaolo, Italy Management, Deutsche Bank, Germany for instant and frictionless payments and Group Chief Information Security Officer for further support the organisation’s continuing
Board of Directors, SWIFT securities processing. Prior to this role, he Standard Chartered PLC in London, and risk maturity as it executes on its strategy.
Göran Fors Stephan Müller was Chief Executive, Americas & UK region held senior roles at Microsoft, Symantec, US Previously, Cate was SWIFT’s Chief Customer
Eddie Astanin Deputy Head of Investor Services, SEB, Divisional Board Member Corporate Clients, since September 2015. In this position, he Department of Homeland Security and Booz Experience Officer. She brings extensive
Chairman of Management Board, Central Sweden Commerzbank, Germany significantly deepened SWIFT’s engagement Allen Hamilton. experience to the role, having held leadership
Counterparty Clearing Centre (NCC), Russia model with global transaction banks and positions in risk, control and compliance in
Seraina Frey Noritoshi Murakami successfully delivered business development Stephen Gilderdale a global transaction banking context. She
Mark Buitenhek Managing Director, Head CDIO COO Shared Managing Director, Head of Transaction results in high-growth markets. He was also Chief Product Officer joined from Lloyds Banking Group, where she
Head of Transaction Services, ING, The Services Operations, Member of the CDIO Banking Division, MUFG, Japan an Executive sponsor of SWIFT’s Customer was Global Transaction Compliance Director,
Netherlands COO Managing Committee, UBS Business Security Programme from 2016 to 2018, Stephen was appointed Chief Product Officer and was appointed SWIFT’s Chief Customer
Solutions AG, Zurich, Switzerland Bock Cheng Neo helping to formulate and lead SWIFT’s in November 2019, with responsibility for Experience Officer in November 2019.
Jose Luís Calderón Igareda Executive Vice President, Head of Global response to the growing cyber challenge creating and delivering customer-centric
Managing Director, Global Head of GTB, Mark Gem Transaction Banking, OCBC Bank, Singapore facing the community. Javier joined SWIFT products. Previously, Stephen was Chief Pat Antonacci
Santander Corporate and Investment Member of the Executive Board, Clearstream in 1995 and held a number of positions, Operations Officer and Chief Platform Officer, Chief Customer Experience Officer
Banking (SCIB), Member of SCIB Executive International, Luxembourg Alain Pochet including Chief Marketing Officer. Earlier in his responsible for the development of SWIFT’s
Committee, Santander, Spain Head of Client Delivery BNP Paribas career, he held a number of technology and messaging platforms. Before that, Stephen Pat was appointed Chief Customer
Martin Kobler Securities Services, France leadership positions in business development was Managing Director for the UK, Ireland Experience Officer in May 2021, responsible
Bernard Carless Managing Director, Head Financial in regional offices in Europe, the Middle East and Nordics, and headed SWIFT’s Customer for ensuring a persistent focus on customer
Head of Payment Market Infrastructures, Institutions, Credit Suisse (Switzerland) Ltd., Russell Saunders and Africa. Security Programme. Prior to joining SWIFT needs. Before assuming this role, Pat held a
FirstRand Group Treasury, South Africa Institutional Clients, Switzerland UK Board Member, United Kingdom in 2007, Stephen held senior management number of leadership positions at SWIFT in
Rosemary Stone positions at Accenture where he worked professional services, project management,
Fabrice Denèle Lisa Lansdowne-Higgins Patrick Tans Chief Business Development Officer across a variety of financial institutions. service management, training and support.
Senior Vice President, Strategy & Senior Vice President, Business Senior General Manager, Banking Products He also has led SWIFT’s Customer Security
Partnerships of Natixis Payment Solutions, Transformation and Deposits, Royal Bank of and Transformation, KBC, Belgium Rosemary was appointed Chief Business David Watson Programme (CSP), which actively supports
France Canada, Canada Development Officer in May 2021, with Chief Strategy Officer the global banking community in the fight
Yvonne Yiu responsibility for business development and against cyber-attacks. Prior to joining
Marc Derycke Emma Loftus Managing Director, Head of Global Liquidity communications. Previously, Rosemary was David was appointed Chief Strategy SWIFT in 2007, he worked for a number of
Managing Director, Euroclear, Belgium Managing Director, EVP and Head of Treasury and Cash Management, HSBC, Hong Kong SWIFT’s Chief Corporate Officer. Prior to that, Officer in October 2020, with responsibility banks including JP Morgan Chase, State
Management, PNC Bank, USA she was Global Head of Human Resources, for market and competitive intelligence, Street, Deutsche Bank and Bankers’ Trust
Managing Director for the UK, Ireland and strategic planning, thought leadership, and in payments, securities, custody, private
Nordics, and held senior management execution of key strategic initiatives for the banking, and program management.
positions within SWIFT in the US and company. He brings extensive experience
Belgium. Earlier in her career, she held a to the role, with an international career Peter De Koninck
variety of senior roles in corporate and public spanning more than 15 years in the financial Chief Auditor
affairs in both London and Brussels. services industry. He served in a number of
commercial and product leadership roles Patrick Krekels
Cheri McGuire at Deutsche Bank before joining SWIFT in General Counsel and Board Secretary
Chief Technology Officer 2019 to drive business performance and
key client relationships. He was integral to Wendy Zidan
Cheri was appointed Chief Technology the development of SWIFT’s new strategy Head of Human Resources
Officer in August 2021, with responsibility for to deliver transaction management services
the vision, strategy and security of SWIFT’s as well as our global corporate market
technology platform. As CTO, she oversees engagement.
all aspects of the platform, network, cloud

30 SWIFT Annual Review 2021 SWIFT Annual Review 2021 31

SWIFT Governance

SWIFT is a cooperative society Board Director nominations Director elections

The AFC may request the presence of any matters. The HRC also meets without SWIFT technology management, resilience and
under Belgian law and is owned SWIFT’s Board composition is designed to Once the proposed Director nominees have
member of SWIFT staff at its discretion. executives several times a year. user communication (in line with Annex F of
and controlled by its shareholders. reflect usage of SWIFT messaging services, been vetted, they are elected as Board
External auditors are present when their CPMI IOSCO’s Principles for Financial Market
SWIFT shareholders elect a Board ensure SWIFT’s global relevance, support Directors by SWIFT shareholders at the
annual statements/opinions are discussed The Technology & Production Committee Infrastructures). Deloitte’s mandate runs until
composed of 25 independent its international reach and uphold its strict Annual General Meeting for a renewable
and whenever the AFC deems appropriate. (TPC) covers technology and production risks March 2023 and covers the 2020, 2021 and
Directors which governs neutrality. three-year term. Every year the Board elects
and developments. 2022 calendar years.
the Company and oversees a Chair and a Deputy Chair from among its
The Banking & Payments Committee (BPC)
management. The Executive Each nation’s usage of SWIFT’s messaging members. It meets at least four times a year.
and the SWIFT Securities Committee (SSC) Audit process User representation
Committee is a group of full- services determines both SWIFT shareholding
focus on segment specific developments, SWIFT’s Chief Auditor has a dual reporting SWIFT’s National Member Groups and
time employees led by the Chief allocations and the number of Board Director remuneration
while the Banking Services Committee line: a direct functional reporting line to National User Groups help to provide a
Executive Officer. Directors that each nation is entitled to. Members of the Board do not receive
(BSC) focuses on Standards, Data and APIs the Chair of the AFC and also a direct coherent global focus by ensuring a timely
any remuneration from SWIFT. They are
(principles of business architecture). administrative reporting line to the and accurate two-way flow of information
SWIFT shareholdings are determined by a set reimbursed for the travel costs incurred in
CEO. Given the sensitivity of external between SWIFT and its users. The National
formula, and the nomination process and the the performance of their mandate. SWIFT
The Franchise Risk Committee (FRC) assists auditors performing consultancy work for Member Groups comprise all SWIFT
composition of the Board follow rules set out reimburses the employer of the Chair of the
the Board in its oversight of the Company’s management, the AFC annually reviews shareholders from a nation, and propose
in SWIFT’s by-laws. Shares are reallocated Board for the share of the Chair’s payroll and
management of key risks, including spending and trends related to external audit candidates for election to the SWIFT Board of
based on the financial contribution of related costs that represent the portion of the
strategic and operational risks, as well fi rms. To ensure objectivity, the mandates Directors. They act in a consultative capacity
shareholders for network-based services. time dedicated to SWIFT.
as the guidelines, policies and processes of the external auditors, as well as their to the Board and Management, and serve
This ensures that the composition of
for monitoring and mitigating such risks. remuneration, are approved by the AFC. the interests of their nation’s shareholders
the Board reflects SWIFT’s shareholders Board committees
The FRC’s role includes oversight of risk by coordinating their views. Each National
around the world. Depending on a nation’s The Board has seven committees. The
management of SWIFT. The FRC coordinates Two mandates for external audit Member Group is chaired by a representative
shareholder ranking, it may propose one Committees provide strategic guidance to
with the Chairs of the AFC and TPC, and The Annual General Meeting approved the who is elected by the SWIFT shareholders of
or two Directors to the Board or join other the Board and the Executive Committee and
focuses on risks not covered by those appointment of PwC as external financial that nation. National User Groups comprise
nations to collectively propose a Director. review progress on projects in their respective
committees. The FRC is chaired by the Chair auditor as proposed by the Board of all SWIFT users from a nation and act as
a. For each of the first six nations ranked areas.
of the Board, and includes the Vice- Chair Directors following a competitive tender. This a forum for planning and coordinating
by number of shares, the shareholders
and the Chairs of the AFC, TPC and BSC. was approved by the works’ council for a operational activities. Each National User
of each nation may collectively propose The Audit and Finance Committee (AFC)
The Committee meets at least three times a mandate of three years ending at the Annual Group is chaired by a representative who is
two Directors for election. The number of is the oversight body for the audit process
year, out of the normal Board cycle. General Meeting of 2024, covering 2021, a prime line of communication between the
Directors proposed in this way must not of SWIFT’s operations and related internal
2022 and 2023. Their financial Audit Reports national user community and SWIFT.
exceed 12. controls. It commits to applying best
The Human Resources Committee (HRC) can be found in the 2021 Statutory and
b. For each of the ten following nations practice for Audit Committees to ensure best
oversees executive compensation. It Consolidated Financial Statements.
ranked by number of shares, the governance and oversight in the following
assesses the Company’s performance and
shareholders of each nation may areas:
decides on the remuneration packages for Further to their appointment as external
collectively propose one Director for • Accounting, financial reporting and
members of the Executive Committee and security auditor in 2020, Deloitte reviewed
election. The number of Directors control
other key executives. It monitors employee and examined in 2021 the adequacy
proposed in this way must not exceed • Legal and regulatory oversight
compensation and benefits programmes, and effectiveness of SWIFT’s controls in
10. • Security
including the provisioning and funding of the accordance with the ISAE 3000 standard.
c. The shareholders of those nations which • Budget, finance and financial long term
pension plans. It also approves appointments For the 2021 calendar year, SWIFT
do not qualify under 1. or 2. above may planning
to the Executive Committee and assists in the provided six standalone ISAE 3000 Type
join the shareholders of one or more • Ethics programmes
development of the organisation, including 2 reports for SWIFTNet and FIN, selected
other nations to propose a Director • Risk management (in cooperation with
succession planning. The Board Chair and on-premise Interface products, Alliance
for election. The number of Directors the Franchise Risk Committee (FRC))
Deputy Chair are routinely members of the Lite2, T2S, ESMIG and AU-NPP. Each
proposed in this way must not exceed 3. • Audit oversight
HRC, which meets at least four times per report includes Deloitte’s view on design
The total number of Directors cannot exceed • The AFC meets at least four times
year with the CEO, the Head of Human adequacy and operating effectiveness
25. per year with the CEO, CFO, General
Resources and the CFO on financial and of the control activities that help achieve
Counsel and the Chief Auditor, or their
performance measures. The HRC has the control objectives in the areas of risk
pre-approved delegates.
delegated powers from the Board in these management, security management,

32 SWIFT Annual Review 2021 SWIFT Annual Review 2021 33

SWIFT Oversight

SWIFT’s oversight objectives While SWIFT is neither a payment nor a The protocol is revised periodically to reflect
Bank, Deutsche Bundesbank, European Finally, SWIFT assists the overseers in
centre on risk identification and settlement system, and is therefore not evolving oversight arrangements.
Central Bank, Sveriges Riksbank, Swiss identifying internal SWIFT documents
management, information security, regulated as such by central banks or bank
National Bank, and the Federal Reserve that might be relevant to address specific
reliability and resilience, technology supervisors, it is subject to central bank Objectives, areas of interest and
System (USA), represented by the Federal oversight questions. Provisions on the
planning, and communication oversight as a critical service provider. A limitations
Reserve Bank of New York and the Board of confidential treatment of non-public
with users. Central banks have large and growing number of systemically In their review, overseers seek assurances
Governors of the Federal Reserve System. information are included both in the protocol
the explicit objective of fostering important payment systems have become that SWIFT has put in place appropriate
between the NBB and SWIFT, and in the
financial stability and promoting dependent on SWIFT, which has thereby governance arrangements, structures,
In the SWIFT Oversight Forum, these central bilateral Memoranda of Understanding
the soundness of payment and acquired a systemic character. processes, risk management procedures and
banks are joined by other central banks between the NBB and each of the other
settlement systems. controls that enable it to effectively manage
from major economies: Bank of Indonesia, cooperating central banks. The official
As a result, the central banks of the G-10 potential risks to financial stability and to the
Bank of Korea, Bank of Mexico, Bank of description of the NBB’s oversight role can be
countries agreed that SWIFT should be soundness of financial infrastructures, to the
Spain, Central Bank of Brazil, Central Bank found in the Financial Market Infrastructures
subject to cooperative oversight by central extent that they are under SWIFT’s control.
of the Argentine Republic, Central Bank of and Payment Services Report published by
banks. SWIFT has been subject to oversight
the Republic of Turkey, Central Bank of the the National Bank of Belgium and is available
since 1998. The arrangement was last In 2007 the overseers developed specific
Russian Federation, Hong Kong Monetary on its website www.nbb.be.
reviewed in 2012 when the SWIFT Oversight oversight expectations applicable to SWIFT,
Authority, Monetary Authority of Singapore,
Forum was set up. Information sharing known as the ‘High level expectations for the
the People’s Bank of China, Reserve Bank
on SWIFT oversight activities was thereby oversight of SWIFT’ (HLEs). The High Level
of Australia, Reserve Bank of India, Saudi
expanded to a larger group of central banks. Expectations document the five categories
Arabian Monetary Agency, and South African
of expectations that overseers have vis-à-vis
Reserve Bank. The SWIFT Oversight Forum
An open and constructive dialogue the services SWIFT provides to the global
provides a forum for the G-10 central banks
SWIFT is committed to an open and financial infrastructure. The five expectations
to share information on SWIFT oversight
constructive dialogue with its oversight relate to: risk identification and management,
activities with a wider group of central banks.
authorities. The National Bank of Belgium information security, reliability and resilience,
(NBB) acts as the lead overseer, as SWIFT technology planning, and communication
Oversight structure — oversight
is incorporated in Belgium, and is supported with users.
meetings
by the G-10 central banks.The oversight
The NBB monitors SWIFT on an ongoing
primarily focuses on ensuring that SWIFT Overseers review SWIFT’s identification and
basis. It identifies issues relevant to SWIFT
has effective controls and processes to avoid mitigation of operational risks, including cyber
oversight through the analysis of 6documents
posing a risk to the financial stability and the security, and may also review legal risks,
provided by SWIFT and through discussions
soundness of financial infrastructures. transparency of arrangements and customer
with SWIFT management. The NBB maintains
access policies. The overseers may also
a close relationship with SWIFT, with regular
Other central banks also have a legitimate discuss SWIFT’s strategic direction with the
ad-hoc meetings, and serves as the central
interest in, or responsibility for, the oversight SWIFT Board and senior management.
banks’ entry point for the cooperative
of SWIFT, given SWIFT’s role in their domestic This list of oversight topics is indicative,
oversight of SWIFT. In this capacity, the NBB
systems. As is generally the case for payment not exhaustive. Overseers will undertake
chairs the senior policy and technical groups
systems oversight, the main instrument for those activities that provide them comfort
that facilitate the cooperative oversight,
oversight of SWIFT is moral suasion. that SWIFT is paying proper attention to the
provides the secretariat and monitors the
objectives described above. Nevertheless,
follow-up of any decisions taken.
Overseers place great importance on the SWIFT continues to bear the responsibility
constructive and open dialogue that is for the security and reliability of its systems,
Access to information
conducted on the basis of mutual trust with products and services. The oversight
In order to achieve their oversight objectives,
the SWIFT Board and senior management. of SWIFT does not grant SWIFT any
the overseers need timely access to all
Through this dialogue, overseers formulate certification, approval or authorisation.
information that they consider relevant.
their recommendations to SWIFT.
Typical sources of information are SWIFT
International cooperative oversight
Board papers, security audit reports,
A protocol signed between the NBB and As lead overseer, the NBB conducts the
incident reports and incident review
SWIFT lays down the common understanding oversight of SWIFT together with the G-10
reports. Presentations by SWIFT staff and
of overseers and SWIFT. The protocol covers central banks: Banca d’Italia, Bank of
management represent another important
the oversight objectives and the activities that Canada, Bank of England, Bank of Japan,
source of information for the overseers.
are undertaken to achieve those objectives. Banque de France, De Nederlandsche

34 SWIFT Annual Review 2021 SWIFT Annual Review 2021 35

 To download the full set of financial statements, including the accompanying
Security audit and financial performance notes referred to below, please visit: www.swift.com

2021 Security audit statement The control objectives were specified Their examination was made in accordance Consolidated statement of profit and loss For the year ended 31 December 2021
The Directors and management acknowledge by SWIFT management, in line with the with the International Standard for Assurance (in thousands) Note 2021 EUR 2020 EUR
their responsibility for maintaining an effective overseers’ High Level Expectations for Engagements (ISAE) 3000, established by
system of internal control. Management is SWIFT and CMPI-IOSCO’s Expectations for the International Auditing and Assurance
Revenue
satisfied that, for the period 1 January 2021 to Critical Service Providers. Further to their Standards Board (IAASB). ISAE 3000
Traffic revenue 2 418,670 418,520
31 December 2021, the control policies appointment as external security auditor is an international standard enabling
One-time revenue 3 3,924 5,782
and procedures were operating with sufficient in 2020, Deloitte reviewed and examined service providers, such as SWIFT, to give
Recurring revenue 4 268,368 269,396
effectiveness to ensure that the control in 2021 the adequacy of design and the independent assurance on their processes
Interface revenue 5 198,882 208,670
objectives were met with regard to risk operating effectiveness of the manual and and controls to their customers and their
Other operating revenue 4,145 3,027
identification and management, information computer-based controls and the control auditors. The ISAE 3000 reports provide
893,989 905,395
security, reliability and resilience, technology policies specified by SWIFT management information and assurance on the security
Expenses
planning and communication with users. for SWIFTNet and FIN, Alliance Lite 2, T2S, and reliability of the covered services and
Royalties and cost of inventory 12 (6,618) (7,125)
AUNPP, selected on-premise Interface products.
Payroll and related charges 6 (442,619) (422,200)
products and ESMIG (‘covered services and
Network expenses 7 (11,914) (15,155)
products’), covering the period through 1
External services expenses 8 (278,612) (268,257)
January 2021 to 31 December 2021.
Depreciation of property, plant and equipment 13 (47,846) (48,553)
Amortisation of intangible assets 14 (7,970) (10,232)
Depreciation of right-of-use assetst 16 (17,761) (17,992)
Other expenses 9 (13,838) (61,093)
(827,178) (850,607)
Profit from operating activities 66,811 54,788
Financing costs 10 (1,765) (1,793)
Other financial income and expenses 10 1,294 (8,067)
Profit before tax 66,340 44,928
Income tax expense 11 (14,106) (9,105)
Net profit 52,234 35,823
Attributable to:
Equity holders of the parent 53,371 36,286
Non-controlling interests 15 (1,137) (463)
52,234 35,823

Consolidated statement of comprehensive income For the year ended 31 December 2021

2021 EUR 2020 EUR

(in thousands) Note Before tax Tax Net of tax Before tax Tax Net of tax
(expense) (expense)

Key figures Year ended 31 December 2021 benefit benefit

Profit for the year (A) 66,340 (14,106) 52,234 44,928 (9,105) 35,823
(in millions) 2021 EUR 2020 EUR 2019 EUR 2018 EUR 2017 EUR
OCI items that may be reclassified subsequently to profit or loss:
Foreign currency translation 2,157 - 2,157 (1,348) - (1,348)
Operating revenue 894 905 877 811 780 Cash flow hedges:
Operating expenses (827) (851) (827) (760) (697) Current year gain / (loss) on financial instruments 31 5,587 (1,397) 4,190 (5,248) 1,312 (3,936)
Profit before taxation 66 45 59 53 69 Prior year (gain) / loss transferred to income statement 31 5,248 (1,312) 3,936 (2,508) 742 (1,766)
Net profit 52 36 42 34 45 OCI items that will not be reclassified to profit or loss:
Net cash flow from operating activities 149 76 196 31 155 Recognition of actuarial gains and losses 24 87,151 (22,369) 64,782 (10,047) 3,636 (6,411)
Capital expenditure of which: 33 48 46 59 80 Other comprehensive income (B) 100,143 (25,078) 75,065 (19,151) 5,690 (13,461)
Property, plant and equipment 31 37 42 52 53 Total comprehensive income for the year (A) + (B) 166,483 (39,184) 127,299 25,777 (3,415) 22,362
Intangibles 2 11 4 7 27 Attributable to:
Shareholders' equity 616 487 466 408 469 Equity holders of the parent 127,952 23,387
Total assets 1,226 1,112 1,006 898 804 Non-controlling interests (653) (1,025)
Number of employees at end of year 3,279 3,300 3,145 2,835 2,779 127,299 22,362

36 SWIFT Annual Review 2021 SWIFT Annual Review 2021 37

 To download the full set of financial statements, including the accompanying
Security audit and financial performance (continued) notes referred to below, please visit: www.swift.com

Consolidated statement of cash flows For the year ended 31 December 2021

(in thousands) Note 2021 EUR 2020 EUR

Cash flow from operating activities

Consolidated statement of financial position For the year ended 31 December 2021 Profit before taxation 66,340 44,928

Note 2021 EUR 2020 EUR Depreciation of property, plant and equipment and right-of-use asset 13-16 65,607 66,545
(in thousands)
Amortisation of intangible assets 14 7,970 10,232
Net (gain)/loss and write-off on sale of property, plant and equipment, and intangible assets 381 -
Non-current assets
Other non-cash operating losses/(gains)
Property, plant and equipment 13 158,580 175,388
Increase/(decrease) in provisions, pensions and government grants 17,342 56,392
Intangible assets 14 16,687 22,936
(Increase)/decrease in other net long-term assets (482) 5,817
Right-of-use assets 16 63,131 66,034
Net financial (income)/costs 4,060 2,884
Deferred income tax assets 17 81,640 91,012
Net unrealized exchange (gain)/loss (2,157) (1,259)
Other long-term assets 21 17,654 19,501
Increase/(decrease) in other non-cash operating items 396 853
Total non-current assets 337,692 374,871
Changes in net working capital
(Increase)/decrease in trade and other receivables and prepayments 19-20-21 (38,464) (33,253)
Current assets
(Increase)/decrease in inventories 22 (398) 2,680
Cash and cash equivalents 18 505,567 400,919
Increase/(decrease) in trade and other payables and contract liabilities 69,329 4,792
Other current financial assets 18 142,924 133,802
Investments in other financial assets 18 (9,122) (53,117)
Trade receivables 19 128,373 99,388
Net cash flow before interest and tax 180,802 107,494
Other receivables 20 35,541 26,958
Interest received 446 877
Prepayments to suppliers and accrued income 21 57,652 53,363
Interest paid (3,352) (2,115)
Inventories 22 2,911 2,513
Prepaid taxes 23 15,638 19,699 Tax paid (28,432) (30,457)
Total current assets 888,606 736,642 Net cash flow from operating activities 149,464 75,799

Total assets 1,226,298 1,111,513 Cash flow from investing activities

Capital expenditures
Shareholders' equity 616,152 487,078 Property, plant and equipment 13 (31,049) (37,039)
Equity attributable to equity holders of the parent 609,058 482,713 Intangibles 14 (1,990) (10,999)
Non-controlling interests 15 7,094 4,365 Proceeds from sale of fixed assets (100) 101
Capital increase in partly-owned subsidiaries 3,382 -
Non-current liabilities Net cash flow used in investing activities (29,757) (47,937)
Long-term employee benefits 24 47,274 120,086
Deferred income tax liabilities 17 5,498 3,410 Cash flow from financing activities
Long-term provisions 26 49,757 52,346 Payment of principal portion of lease liabilities 16 (18,786) (18,824)
Contract liabilities 5 104,087 106,488 Net payments for reimbursement of capital (1,607) (1,467)
Lease liabilities 16 48,386 49,347 Net cash flow from (used in) financing activities (20,393) (20,291)
Other long-term liabilities 27 2,378 4,708
Total non-current liabilities 257,380 336,385 Increase/(decrease) of cash and cash equivalents 99,314 7,569

Current liabilities Movement in cash and cash equivalents

Amounts payable to suppliers 27 99,021 61,997 At the beginning of the year 400,919 397,224
Short-term employee benefits 25 77,827 79,358 Increase/(decrease) of cash and cash equivalents 99,314 7,569
Short-term provisions 26 13,759 6,637 Effects of exchange rate changes 5,335 (3,874)
Contract liabilities 5 54,476 24,977 At the end of the year 18 505,567 400,919
Lease liabilities 16 16,461 14,768
Other liabilities 27 84,554 87,515 Cash and cash equivalent components are:
Accrued taxes 28 6,668 12,798 Cash 18 89,025 81,554
Total current liabilities 352,766 288,050 Liquid money market products 18 416,710 319,798
Credit loss allowance 18 (168) (433)
Total equity and liabilities 1,226,298 1,111,513 At the end of the year 18 505,567 400,919

38 SWIFT Annual Review 2021 SWIFT Annual Review 2021 39

SWIFT offices

Americas India Europe, Middle East and Africa South Africa

Global presence
Unit No.1303, 13th Floor Unit 18, 2nd Floor
28 offices worldwide connecting more
Brazil The Capital, Plot No. C-70, G Block Austria 1 Melrose Boulevard
than 200 countries and territories.
Avenida Brigadeiro Faria Lima, 3729 - 5th floor Bandra-Kurla Complex Regus Business Centre “Le Palais” Melrose Arch
Itaim Bibi Bandra (East) Herrengasse 1-3 Gauteng 2076
Sao Paulo, SP 04538-905 Mumbai 400 051 1010 Vienna Tel: +27 11 218 5353
Tel: +55 11 3514 9004 Tel: +91 22 6196 6900 Tel: +43 1 740 40 2370
Spain
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C.P. 11590 JI.MH. Thamrin 1 Tel: +32 2 655 31 11 Tel: +34 91 425 1300
Tel: + 52 55 4739 9583 Jakarta 10310
Tel: +62 21 2358 4400 France Sweden
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Tel: +1 305 347 6700 Building 1-6-6 Marunouchi Tel: +33 1 5343 2300 Tel: +46 8 508 95 300
Chiyoda-ku
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7 Times Square Tel: +81 3 5223 7400 Floor 13, Kastor Tower Freischützgasse 10
45th Floor Platz der Einheit 1 8004 Zurich
New York, NY 10036 Korea D-60327 Frankfurt am Main Tel: +41 43 336 5400
Tel: +1 212 455 1800 Level 21, Seoul Finance Center Tel: +49 69 7541 2200
136 Sejondaero United Arab Emirates
Asia Pacific Jung-gu Seoul 04520 Ghana DIFC – The Gate Village 5
Tel: +82 2 3782 4735 No. 31 Asafoanye O. Broni Crescent Level 1
Australia Ringway Estates P.O. BOX 506575 Dubai
Suite 1, Level 23 Malaysia Osu, Accra Tel: +971 4 439 0870
259 George Street Level 8, UOA Corporate Tower Tel: +27 11 218 5363
Sydney NSW 2000 Lobby B, Avenue 10, The Vertical United Kingdom
Tel: +61 2 92 25 8100 Bangsar South City Italy 6th floor, The Corn Exchange
No. 8, Jalan Kerinchi 6th Floor, Corso Matteoti 10 55 Mark Lane
China – Beijing 59200, Kuala Lumpur 20121 Milan London EC3R 7NE
Units 611-615 6th Floor Tel: +603 2778 7500 Tel: +39 02 7742 5000 Tel: +44 20 7762 2000
No.7. Financial Street
Winland International Finance Centre Singapore Kenya
Xicheng District, Beijing 100033 8 Marina View Britam Towers, 24th Floor
Tel: +86 10 6658 2900 Asia Square Tower 1 #28-04 Off Hospital Road
Singapore 018960 Upper Hill 00200
China – Shanghai Tel: +65 6347 8000 Nairobi-Kenya
Unit 4606-08, IFC 2 Tel: +254 07 0938 5060
8 Century Avenue
Pudong, Shanghai 200120 Russia
Tel: +86 21 8021 8000 LOTTE Business Centre, 10th Floor
8, Novinsky Boulevard
Hong Kong 121099 Moscow
Suites 3205-09, 32/F Russian Federation
One Island East Tel: +7 495 228 5923
18 Westlands Road
The list of SWIFT offices can change from Island East, Hong Kong
time to time. Updated contact details for our Tel: +852 2107 8700
offices can be found at www.swift.com.

40 SWIFT Annual Review 2021 SWIFT Annual Review 2021 41