On Oct. 24, 2022, Fed announced that the Reserve Banks will adopt the ISO 20022 message format for the Fedwire Funds Service on a single day, Mar. 10, 2025.
The board also announced revised testing strategy, backout strategy, other details concerning implementation of ISO 20022 message format for Fedwire Funds Service.
On Feb. 9, 2023, CHIPS rescheduled the ISO 20022 migration to Apr. 2024, #162984.
On Jan. 25, FedWire issued details on funds service Nov. 2022 release.
FedWire announced changes to FedWire funds service's proprietary message format.
Changes support cross-broader ISO 20022 interoperability via market practice when SWIFT, TARGET2, EURO1 are expected to support enhanced ISO 20022 messages.
Follows Oct. 2021 announcement to adopt enhanced ISO 20022 format, see #45010.
Tag Change Overview
Tag {8200}, unstructured addendum information, will be added as an optional tag in bank transfer (BTR) and cover payment (CTP COVS) messages; provided new format.
Fund service participants must be able to receive messages that include tag {8200}.
Additionally, participants that are SWIFT members should be able to send messages that include tag {8200} if they plan to follow the ISO 20022 US market practice.
SWIFT ISO 20022
Created a market practice that SWIFT members who receive ISO 20022 messages can follow to map SWIFT ISO 20022 message to FedWire funds service message format.
Removed the code TDAT and market practice related to mapping an unlikely scenario in which an ISO 20022 message is larger than 9k characters to simply market practice.
Also added code TMPY and TMPN to indicate whether the transaction was received through SWIFT’s transaction management platform (TMP); codes used with code XDAT.
Refer to revised ISO 20022 US market practice document for details on sending and receiving messages that include tag {8200}; provided additional release documents.
Testing Requirements
Fed has established the Fedwire funds service Nov. 2022 release testing requirements.
Notification will be sent to participants, providers that meet mandatory testing criteria.
Changes to tag {8200} will be available in depository institution testing environment on Mar. 2, 2022, for FedWire funds service participants and providers to start testing.
Effectiveness
Fedwire funds service proprietary message format changes effective Nov. 21, 2022.
Jun. 2022 Fed Final Timeline
On Jun. 27, 2022, Fed issued Fedwire Funds Service final timeline for message format.
ISO 20022 format to be adopted on single day, Mar. 10, 2025 versus phased approach.
Noted continued work with CHIPS to implement ISO 20022 and reduce disruptions.
Given scale, users required to complete testing will be notified by year-end 2022.
Dashboard to provide readiness by category, e.g., national accounts, service providers.
Goals of new format are to enhance interoperability between global payment systems.
Further, mitigate money laundering risk, enhance AML compliance, drive efficiencies.
Oct. 2022 Fed Reg Adoption Date
On Oct. 24, 2022, Fed announced that the Reserve Banks will adopt the ISO 20022 message format for the Fedwire Funds Service on a single day, Mar. 10, 2025.
The board also announced revised testing strategy, backout strategy, other details concerning implementation of ISO 20022 message format for Fedwire Funds Service.
On Feb. 9, 2023, CHIPS rescheduled the ISO 20022 migration to Apr. 2024, #162984.
