May 27, 2020
This communication provides important details about the ISO 20022 implementation for the Fedwire Funds Service and should be delivered to individuals at your institution that need to prepare for this implementation.
In September 2019, the Federal Reserve Banks issued a press release to announce a pause in their plans for a three-phase migration to the ISO 20022 messaging standard for the Fedwire Funds Service and to announce that Phase 1 of the migration would not be implemented in November 2020 as originally planned.
As stated in that press release, the Federal Reserve Banks are reassessing the phased ISO 20022 migration strategy in favor of a single-day implementation of fully enhanced ISO 20022 messages. The reassessment has included discussions with Fedwire Funds Service participants, software vendors, and The Clearing House Payments Company L.L.C., operator of the CHIPS® funds-transfer system. These discussions have considered cross-border interoperability issues that may occur if the Federal Reserve Banks and other high-value payment system operators have not implemented the ISO 20022 messaging standard by the time SWIFT enables its participants to start sending data-rich ISO 20022 messages over its global network. Recently, the discussions have also considered the impact of SWIFT’s March 2020 announcement regarding a new approach to ISO 20022 adoption (Off-site), which will extend the start date for SWIFT enabling ISO 20022 messages for cross-border payments by one year from November 2021 to November 2022.
The Federal Reserve Banks will continue to collaborate with other high-value payment system operators to ensure a coordinated implementation approach. However, given the coronavirus (COVID-19) , it is unlikely that we will announce a final decision on the ISO 20022 migration strategy before the end of this year, but we can provide an update on the status of Phase 1 of the migration. We will not implement the Phase 1 release in 2020 or 2021 and do not have any other message format changes for the Fedwire Funds Service planned through 2021.
The Federal Reserve remains committed to supporting the ISO 20022 standard and anticipates providing an update later in 2020 regarding the overall ISO 20022 migration plan for the Fedwire Funds Service.
For questions about this communication, please contact your account executive.