Money Wiki

In banking, what is a “gray screen transaction”?

Banking
Asked by Question Bot03/Jan/20151 answer

1 Answer

F

Faisal Khan

Answered 03/Jan/2015

It is not mandatory that large transactions have to go through SWIFT. If the two banks have a direct (trusted) relationship or one even through a correspondent bank (that is trusted), they can settle with each other directly.

Whilst SWIFT is used a lot, there are method of transacting with each other directly. Unbeknownst to many, SWIFT doesn't actually move funds. Just instructions that all member banks adhere to.