June 2025: On the Wire - ISO^® 20022 Newsletter

Only four weeks remain until the ISO 20022 migration!

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Keep up the pace for July 14

Federal Reserve Financial Services (FRFS) is still on track to implement the new ISO 20022 message format on July 14 as planned. An official “go/no go” announcement will be communicated to the industry no later than June 27. We recommend that customers and vendors continue to test through July 11. Please review our Industry Readiness Dashboard (PDF) (as of May 30) to see the progress the industry has made as we approach July 14.

To help you prepare for the upcoming migration, please review the preparedness checklist that applies to your profile (available on the Implementation Center). If you haven’t finalized your readiness and contingency plans, we highly recommend that you complete them as soon as possible. It is critical that you have a viable contingency plan in the event that you are not ready to send or receive ISO 20022 messages through the Fedwire^® Funds Service or your wire ecosystem is not ready for ISO 20022 messages beginning July 14.

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ISO 20022 and data quality

In early May, the Payments Risk Committee (PRC) banks conducted a peer-to-peer testing exercise focused on the quality of the data exchanged in ISO 20022 messages. While the testing was successful overall, it provided some important takeaways regarding data quality issues that we summarize below for your consideration as you continue to test and prepare for our July 14 go-live date:

Perform testing with production-like data to the extent possible.
Provide a Business Identifier Code (BIC) in the appropriate ISO 20022 BIC element (and not in the Name element) when it is available to identify financial institutions involved in a payment transaction.
Provide account numbers to the extent possible.
Make sure that when returning a payment, all parties and financial institutions involved are identified per their role in the return payment, not their role in the original payment that is being returned.
Provide return request response (camt.029) and drawdown request response (pain.014) messages when return requests (camt.056) and drawdown requests (pain.013), respectively, will not be honored.

DIT2 peer testing

We highly recommend that you continue to test through July 11 in the DIT2 environment. If you need help finding a testing partner, please sign up to join the DIT2 peer testing community, which has close to over 750 testing participants. Once you are signed up, you will receive a weekly email with all the testing participants so that you can directly connect with other institutions on the list to coordinate peer testing (e.g., when to test, what to test).

New drop-in session added

Due to customer demand and popularity of these sessions, we will be adding an additional drop-in session on Thursday, June 26 at 3:00 p.m. ET. While the content will be primarily geared toward FedLine Advantage^® customers, anyone may attend. This provides an opportunity to ask our subject matter experts any remaining questions you have. Register on our ISO 20022 Education page.

FedLine Advantage users: Act now

All FedLine Advantage users (primary or backup) should review the following important steps to help your institution prepare for the upcoming July 14 migration:

Learn new ISO 200222 screens: The outgoing message forms have changed and will require different fields, so we highly recommend that your wire operations team familiarize themselves with the new ISO 20022 screens and features. Our last virtual training session will be offered on July 2 for Subscribers with the roles of FedPayments^® Manager – Funds Manager, Funds Supervisor or Funds Transfer Specialist only. You can also review the training materials available in the “Help” link within the FedPayments Manager – Funds application.
Attest now (if you haven’t already done so): We need your attestation that you have trained your staff to use the new ISO 20022 screens in the FedPayments Manager – Funds application via FedLine Advantage and that your institution is ready to use the FedPayments Manager – Funds application to send/receive ISO 20022 messages beginning July 14. We recommend testing outgoing wires you send today, such as a customer credit transfer (pacs.008) or bank transfer (pacs.009) before providing the attestation. Once you have tested, click on the “Complete Attestation” button in the DIT2 test environment to indicate your readiness. Individuals with a Funds Supervisor or Funds Manager role will be able to complete the attestation on behalf of your institution.
Prepare your entire wire ecosystem: Inventory the systems that support your entire wire operations (i.e., upstream and downstream systems (PDF)), reach out to your internal software developers or vendors, and take action to ensure readiness for the ISO 20022 migration.

a screwdriver and a wrench crossed over each other

Fedwire Funds Service fast follower release

We intend to implement a fast follower release during the latter half of Q4 2025 to address known issues in the FedPayments Manager – Funds application via FedLine Advantage Solution and add a few enhancements for the FedLine Direct^® Solution. Please review the following documents for additional details:

New FedPayments Manager – Funds Known Issues List added to the “Help” link within the FedPayments Manager – Funds application.
New chapter on FedLine Direct enhancements added to the Fedwire Funds Service ISO 20022 Quick Reference Guide (June 2024) posted on the public page in the MyStandards^® portal.

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DIT/DIT2 testing support post-ISO 20022 go-live

Post-ISO 20022 migration, the two DIT test environments will be configured as described below:

The DIT environment will continue to serve as the production-like environment for the Fedwire Funds Service.
The DIT2 environment will host future enhancements for the Fedwire Funds Service.
During the month of August, the DIT environment will support testing of the production ISO 20022 software version (replacing the FAIM version) and the DIT2 environment will support the fast follower release as described above. Please contact our Wholesale Testing Services with any questions.

Please note: The DIT2 environment will be on an adjusted schedule for the first week of production (i.e., July 14 – 18).  For additional details, please refer to our Quick Reference Guide available in the public page on MyStandards.

papers with graphs on them. there's a magnifying glass, pen, and calculator next to them

Leverage FedTransaction Analyzer^® to access both FAIM and ISO 20022 message data post-migration

The FedTransaction Analyzer tool provides volume- and value-based analysis of your Fedwire Funds Service transaction data for up to seven years, regardless of whether a transaction was sent in the legacy FAIM or ISO 20022 format. This tool is complimentary for FedLine Advantage Solution users and includes a variety of reports and data overviews to help your financial institution:

Assess potential exception activity
Automate manual reporting processes
Locate an individual payment order with Output Message Accountability Data (OMAD)

Ask your End User Authorization Contact (EUAC) to activate the FedTransaction Analyzer role for you today!

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More information

We are here to help you! Please contact us, your relationship manager or Wholesale Testing Services with any questions you have about this newsletter or the ISO 20022 migration.

Be sure to bookmark the Fedwire Funds Service ISO 20022 Implementation Center so you have access to the latest information about ISO 20022.

June 2025: On the Wire - ISO® 20022 Newsletter