ISO 20022 FOR CORPORATES: NEWSLETTER - 2023 #1

ISO 20022 FOR CORPORATES: NEWSLETTER - 2023 #1

In this edition of the ISO 20022 newsletter, we would like to bring two topics to your attention:

  • the new timeline of the ISO 20022 migration announced by the financial market; and
  • the XML message equivalent of the FIN MT messages.

New migration timeline

Swift has announced a delay to the start date of the cross-border payments and reporting (CBPR+) ISO 20022 co-existence period, which has been moved from November 2022 to 20 March 2023. Although all required technical capabilities have been deployed since last August, the decision to postpone was taken at the request of the global banking community, following an earlier announcement from the European Central Bank (ECB) to delay the Eurosystem (TARGET2 and EURO1) ISO 20022 migration to March 2023. Aligning with the new timetable of the ECB will give financial institutions more time for testing and will help ease the implementation process.

SWIFT confirmed however that the revised start date of 20 March 2023 for the ISO/MT co-existence is definitive. Hence there will be no more postponements.

Local markets have planned their ISO 20022 migration for local payments in local currencies. In the U.S. for instance, CHIPS will migrate in November 2023 while Fedwire has set a target of March 2025 for its transition. In the UK, the migration date for CHAPS has been set for June 2023.

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Messaging from/to Payments Market Infrastructures: project driven by each country’s Central Bank.

  • The first to move will be TARGET2 and EURO1: ‘big-bang’ migration to full ISO 20022 on 20 March 2023.
  • UK GBP CHAPS go live: 19th of June 2023

Messaging many-to-many (bank to bank) : Migration driven by SWIFT. Adoption over a three-year coexistence period, starting on 20 March 2023.

  • Each financial institution should ensure the ability to receive ISO 20022 from March 2023 and to be fully ready by November 2025.

MT and MX equivalent table

The financial industry, together with SWIFT, has decided to migrate from the traditional MT standard to ISO 20022 XML for all interbank, cross-border and high value payments and associated cash reporting.

The key MT Category 1, 2 and 9 messages will be removed from the interbank space after November 2025. The following table lists the equivalent ISO 20022 messages of the FIN MT Payments Clearing and Settlement messages (pacs) and the Cash Management (camt) messages.?

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As a Cash Management client, you are not affected by the end date of the MT messages. If you exchange MT for payment initiation (MT 101) and reporting (MT 940/942) with BNP Paribas, you can continue doing so beyond the November 2025 deadline.

However, to ensure the information you provide in the payment instructions passes to the interbank space unchanged after November 2025, you should envisage to also switch to the ISO 20022 standard and study the implications on your internal systems.

In the next edition of this newsletter, we will explain why it will be increasingly necessary to switch to the ISO 20022 standard in order to populate addresses of your counterparties in a structured format.

Your 法国巴黎银行 account manager is at your disposal for more information.

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