ISO 20022 Migration #
What is ISO 20022 migration?
ISO20022 is a global standard for payment data communication, making transactions faster and easier to reconcile worldwide. It has been used for SEPA transactions for years. Recently, SWIFT adopted ISO 20022 (called SWIFT CBPR+) for cross-border payments and reporting, starting in March 2023. This move aims to create unified standards for exchanging important payment messages internationally. Many major financial systems, like Europe’s Target, have already shifted to ISO 20022 or are in the process of doing so.
What is CBPR+?
CBPR+ is SWIFT’s plan to use ISO 20022 for international payments and reporting. It begins in March 2023 and runs until November 2025, gradually replacing old MT messages for cross-border payments and cash reporting.
Why is ISO20022 being introduced?
ISO 20022 sets a universal standard for payment data, making it richer, structured, and consistent. This facilitates smoother processing, interoperability between financial systems, better monitoring, and enhanced reconciliation. Please see an example of an MT103 (ISO15022) vs pacs.008 (ISO20022) below: