- Source: bis.org
The Committee on Payments and Market Infrastructures (CPMI) has recently revealed standardized data requirements for ISO 20022 usage, aiming to streamline cross-border payments and make them more efficient.
Treliant, armed with our deep-seated knowledge of financial regulations and international payment systems, is uniquely positioned to assist organizations in adapting to these changes.
By delivering strategic counsel, support for implementation, and compliance monitoring, Treliant is prepared to ensure that institutions meet the 2027 deadline, all while maximizing the opportunities afforded by more structured international messaging standards.
On the October 17, 2023, the CPMI published a set of standardized requirements for use in ISO 20022 cross-border payments, aimed at maximizing interoperability and moving the community closer to the targets of the G20 cross-border payments program.
These requirements represent a broad consensus, developed in collaboration with the Payments Market Practice Group (PMPG) and over 50 industry stakeholders, and thus do not diverge from acknowledged best practice. Nevertheless, participants will certainly experience impact and will need to start aligning their practices with the new requirements promptly, with a final alignment deadline set for the close of 2027.
The CPMI’s release of standardized ISO 20022 data requirements is a major step towards realizing the G20 targets of faster, cheaper, more accessible and more transparent international payments. It also serves to mitigate the risk of fragmentation among ISO 20022 implementations, and to maximize the benefits of the ongoing global move toward ISO 20022.
What This Means for Institutions
The CPMI has produced twelve requirements divided into three groups, together with detailed material describing the exact usage of ISO 20022 messages and fields in meeting the requirements. The requirements are grouped as follows:
Fundamental requirements relate to the ISO 20022 format itself and the selection of message types, character sets, and other parameters. Impact of these requirements is likely to be low for most institutions, but review will be required to ensure that, for example, purpose codes are being used in a standardized manner.
Transparency requirements relate to the use of uniform end-to-end transaction references (UETRs) and to improving clarity around fees, currency conversions, and charges. While many large institutions will already be using UETRs, the fee and charge clarity requirements could have significant impact in cases where this information is not already well-structured.
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