The Bank for International Settlements is a bank owned by central banks, not by governments or private investors
The Bank for International Settlements (BIS) is an organization in Basel, Switzerland, where the central banks of about 63 countries keep accounts and do business with each other. It is not a bank you can open an account with. It does not handle money for regular people or businesses. Instead, it exists so that central banks—like the Federal Reserve in the United States or the European Central Bank—can transfer money between themselves, coordinate policy, and solve problems that cross borders.
The BIS was founded in 1930 to help settle payments after World War I. Today it serves as a meeting place and a settlement system for central banks. When one country's central bank needs to move money to another country's central bank quickly and safely, the BIS often handles it. The organization also sets standards that banks worldwide follow, publishes research on financial stability, and hosts meetings where central bank leaders discuss economic policy.
If you are waiting for a refund, payment, or transfer that involves more than one country, the BIS may be part of the path that money takes behind the scenes. You will not see the BIS name on your bank statement, but the systems it operates and the rules it sets shape how international money moves.
Key Takeaways
- The BIS is owned and run by central banks, not governments, and it does not serve individual people or businesses directly.
- Money moving between countries often passes through BIS systems, even though you will not see the BIS name in your transaction.
- The BIS sets global banking standards and coordinates central bank policy to keep the international financial system stable.
- If your refund or payment is delayed and involves multiple countries, delays at the BIS level are rare but possible.
- You cannot contact the BIS directly about a personal refund or payment—you work through your own bank and the receiving bank.
How the BIS moves money between central banks
Central banks use the BIS to settle large payments with each other. When the Federal Reserve needs to send money to the Bank of England, or when a Japanese bank needs to receive funds from a European bank, those transactions often flow through BIS accounts and systems. The BIS operates a real-time settlement system called TARGET2 (in Europe) and connects to similar systems in other regions.
These systems are designed to be fast and safe. A payment that goes through the BIS typically clears within hours, not days. However, the BIS itself is not the reason your personal international refund takes a long time. The delays usually happen at the sending bank, the receiving bank, or in the compliance checks that banks must run to prevent money laundering. The BIS handles the actual transfer quickly once the banks have prepared it.
The standards and rules the BIS sets for all banks
The BIS publishes rules and standards that banks around the world follow. The most well-known is the Basel Accords, which set minimum capital requirements for banks. These rules exist so that banks stay solvent and do not take on too much risk. When a bank holds your refund or processes your payment, it is following rules that the BIS helped create.
The BIS also publishes guidance on how banks should handle cross-border payments, anti-money-laundering procedures, and cybersecurity. If your international refund is held up because a bank is running extra checks, that bank is likely following a standard that traces back to BIS recommendations. These standards slow things down sometimes, but they also protect you by making sure the money reaches the right person and that banks do not collapse.
Why the BIS matters for international refunds and payments
If you are waiting for a tax refund, insurance refund, or business payment from outside the United States, the money may pass through BIS systems. The same is true if you are sending money out of the country. The BIS does not cause most delays—those usually come from your bank, the receiving bank, or regulatory checks—but understanding that the BIS exists helps explain why international money moves the way it does.
The BIS also coordinates between central banks during financial crises. If a bank fails or a country faces a currency crisis, the BIS can help central banks lend to each other to stabilize the system. This coordination protects the banking infrastructure that your refund depends on. You will never see this happen, but it is one reason why international payments are generally reliable even when the world economy is shaky.
What you cannot do with the BIS and where to go instead
You cannot open an account at the BIS, deposit money there, or contact it about a personal refund or payment. The BIS does not have a customer service line for individuals. If your international refund is delayed, you contact your own bank first, then the bank that is supposed to receive the money. Those banks can tell you where the money is stuck and why.
If a bank tells you that the BIS is holding up your payment, ask for specifics. The BIS does not typically hold individual transactions. What the bank may mean is that the payment is in a BIS system waiting for the receiving bank to process it, or that compliance checks required by BIS standards are underway. Push back and ask which bank is actually holding the money and what step is pending.
How long international payments take through BIS systems
A payment that goes through BIS systems can clear in a few hours to a full business day, depending on the time of day it is sent and which countries are involved. However, most international refunds take longer than that because of steps that happen before and after the BIS transfer. Your bank may take one to two days to prepare the payment. The receiving bank may take another one to two days to post it to the recipient's account. Regulatory checks can add several more days.
If you are told a refund will arrive in three to five business days internationally, the BIS transfer itself is usually just a few hours of that timeline. The rest is your bank, the receiving bank, and compliance procedures. If a refund is taking longer than expected, ask your bank for a tracking number and the name of the receiving bank, then contact the receiving bank to see where the money is.
The relationship between the BIS and your country's central bank
Your country's central bank is a member of the BIS and uses its systems and follows its standards. In the United States, the Federal Reserve is the central bank and a BIS member. The Federal Reserve uses BIS systems to move money between itself and other central banks, and it follows BIS standards when setting rules for American banks.
This means that when you receive an international refund, the rules and systems that govern it were partly shaped by the BIS. You do not need to know the BIS exists to receive your money, but understanding that central banks coordinate through the BIS explains why international payments follow certain patterns and why they take as long as they do.
Frequently Asked Questions
Can I contact the BIS if my international refund is delayed?
No. The BIS does not handle individual accounts or payments. Contact your own bank first, then ask them to reach out to the receiving bank. Your bank can tell you whether the money is in a BIS system and what step is pending.
Does the BIS charge fees for international transfers?
The BIS does not charge you directly. Your bank and the receiving bank charge fees for international transfers. Those fees are separate from any BIS involvement and are set by the banks, not by the BIS.
Is the BIS the same as the World Bank or the International Monetary Fund?
No. The BIS is owned by central banks and handles central bank-to-central bank transactions. The World Bank lends money to countries for development projects. The IMF provides loans and policy advice to countries in financial trouble. All three are international financial organizations, but they serve different purposes.
What happens if the BIS fails or shuts down?
The BIS is owned by the world's major central banks and is extremely stable. Central banks would not allow it to fail because they depend on it. If the BIS ever faced a serious problem, central banks would step in to fix it before it affected individual payments.
Why does my international refund take so long if the BIS can transfer money in hours?
The BIS transfer itself is fast, but international refunds involve many steps: your bank preparing the payment, compliance checks, the BIS transfer, the receiving bank processing it, and posting to the recipient's account. Each step can take hours to days. The BIS is only one part of the journey.