An introduction to SwiftNET

SwiftNETThe high level overview you always wanted.
Rishabh Dangwal
Consultant, KPMG Cyber Security
www.theprohack.com | Twitter : @prohack | admin@theprohack.com

Agenda
 Understanding SwiftNET
 Introduction
 Organizational Structure
 Partners
 SwiftNET Messaging Architecture
 Services
 SwiftNET Modules
 FIN
 InterACT
 FileACT
 Browse
 SwiftNET Ancient Architecture
 SwiftNET Contemporary Architecture

Introduction
• Society for Worldwide Interbank Financial Telecommunications.
 Formed because TELEX (& older systems) lacked speed, security & were
cumbersome.
 Started with 230 banks in 5 countries, now used by 10000 institutions in 212
countries.
 Its ancient network was replaced with packet switched network X.25, which again
was migrated to IP network (SwiftNET)
 24 million daily messages comprising of
 48% of payment messages
 46% of securities messages &
 Remainder treasury, trade and system messages.
 SWIFT takes full liability for each message once they have accepted it.
 99.999 % reliability (YAY!)

 SWIFT operates a number of services, primarily:
 General Purpose Application
 Financial Application
 Initial Objective: To create a central point for the passing of secure and
standardized messages coming from banks that are mainly interested in payment
messages.
 Today over 200 different SWIFT messages exist, including –
 Credit and Debit Instructions
 Buy and Sell Orders
 Documentary Credits
 Collections, Guarantees, interbank transfers etc.
Introduction Cont..

 Additionally, SWIFT provides a number of services* that are charged for over and
above the normal fees. A few of these are:
 IFT (Interbank File Transfer)
 ACCORD
 Directory Services
 RTGS
 Users are charged on the character length (unit lengths of 325, 750, or 1950) or by
message type.
 The charges also vary depending on volume tier.
*more on this later
Introduction Cont..

courtesy of Swift.com
SwiftNET Organizational Structure

SwiftNET Partners
Business partners
Over the years SWIFT has built a network of external partner companies who act in
selected countries or regions on SWIFT's behalf, called SWIFT business partners.
 North America: S.I.D.E. America Corp,
 Middle East & Gulf Region: Eastern Networks Dubai,
 Balkan countries: CiS d.o.o. Serbia & Montenegro. Etc.
Network partners
SWIFT has adopted a multi-vendor model for its secure IP network (SIPN). The new
architecture uses state-of-the-art security and ensures highest resilience and lowest
risk. The key aspect of this architecture is the co-existence of multiple IP network
partners.
SWIFT uses four network partners, each with a standard offering of managed IP-VPN
services
 AT&T
 BT Infonet
 Colt Telecom
 Orange Business Services

SwiftNET offers four modules or messaging services:
 SwiftNET FIN – Standard store & forward messaging for single instructions
 SwiftNET Interact – Interactive message exchange between two parties
 SwiftNET FileACT – Interactive exchange of files between two parties
 SwiftNET Browse – Provides https-based access to visual content on webservers
from desktops
SwiftNET Services

Bank A
CBS – Swift
Interface
Bank B
CBS – Swift
Interface
Central Swift Interface
Information & Control
Module (ICM)
SwiftFIN
S W I F T N E T
FIN Copy
FileACT
Real time reporting
SwiftNET Browse
Visualization of
Information
InterACT
Real time cash reporting
SwiftNET Messaging Architecture

 Enables the exchange of messages with the traditional SWIFT MT standards.
 MT is short for “Message Type” and all SWIFT messages start with MT.
 This is then followed by a 3 digit number.
 The first digit represents the Category. A category denotes messages grouped
together because they all relate to particular financial instruments or services.
Group Messages:
MT0nn System Messages
MT1nn Customer Payments
MT2nn Financial Institution Transfers
MT3nn FX, Money Market & Derivatives
MT4nn Collections and cash letters
MT5nn Securities Markets
MT6nn Precious Metals & Syndications /GOLD
MT7nn Documentary Credits & Guarantees
MT8nn Travellers Cheques
MT9nn Cash Management & Customer Status
SwiftNET FIN

The second digit represents the Group denoting that the messages are related to
similar parts of a transaction's lifecycle.
 MT200 Financial Institution Transfer, Own Account
 MT202 Financial Institution Transfer, Third Party
 MT521 Receive (Securities) Against Payment
 MT523 Deliver (Securities) Against Payment
The last digit is the Type and denotes the individual message. There are several
hundred message types across the categories in total. A special subset of Messages is
known as the Common Group because the last two digits represent the same message
in each category
 MTn99 Free format
 MT299 Free format relating to transfers
 MT599 Free format relating to securities
 MT999 General free format
SwiftNET FIN Cont..

1. Payment Instruction (Swift Code : MT103, 103+, 202,204*)
2. Settlement request (Swift Code : MT096)
3. Settlement response (Swift Code: MT097)
4. Approved / Settled. Payment Instruction received
5. Sender / receiver notification and reporting (Swift Code : MT012, MT019, MT900,
MT910, MT940, MT950 )
SWIFT Interface
SwiftNET FIN
Payment
order
Y Copy
1
2
4
5
3
Bank A
5
Bank B
SwiftNET FIN Cont..

 SwiftNET InterAct Q& R: interactive exchange of information for messages that are
time-critical and need an instant response
 New message types will be introduced as ISO XML messages for SwiftNET InterAct :
cash management standards
 Access to the web server through SwiftNET Interact:
 Managing the payments queue
 Liquidity management
 Management of reservation and limits
SwiftNET InterACT

 Authenticity, integrity, confidentiality, non-repudiation.
 Flexible central routing.
 Any type of file up to 250Mb, compression supported.
 Store & Forward mode : Typically used to reach a large number of counterparties.
 Realtime Mode : Happens for direct person to application transactions.
Bank A Bank B
Realtime Initiate File Transfer
Realtime Transfer Files
Optional File Delivery Notification
FileACT
SwiftNET FileACT

 Secured with SwiftNET PKI (managed certificates)
 Encryption, authentication and integrity control
 Non-repudiation
 Closed user group control
 SIPN
SwiftNET FileACT Cont..

 SwiftNET Browse enables secure browser-based access (over SIPN) from an operator
using a standard browser and SWIFT Alliance WebStation to a service provider’s
web server
 Also, it allows to initiate InterAct or FileAct exchanges via a secure browser link.
Through this, sensitive data as per security & reliability norms of SwiftNET, while
preserving the benefits of a browser-based environment.
Bank A
Alliance Workstation
SwiftNET
Service Provider Server
BROWSE
HTTPS authenticates System of End user
InterACT / FileACT authenticates end user using
SwiftNET PKI certificates
SwiftNET Browse

HLD courtesy of Swift.com
SwiftNET Architecture : Ancient Network

HLD courtesy of Swift.com
SwiftNET Architecture : SwiftNET

Questions?SuperZAP me at admin@theprohack.com

Thank You!
Rishabh Dangwal
Consultant, KPMG Cyber Security
www.theprohack.com | Twitter : @prohack | admin@theprohack.com

An introduction to SwiftNET

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