Table of contents
What are the new milestones leading up to November 2022 for the various activities (including the release of standards and testing)?
Financial institutions using SWIFT messaging software need to upgrade their messaging interface to be able to complete testing for the In-flow Translation service. SWIFT is supporting the testing journey with a schedule of services and resources, with regular updates to customers as follows:
- In-flow Translation service available for testing in the FINplus Pilot future service (November 2021).
- Updated CBPR+ usage guidelines available on MyStandards (January 2022).
- Updates to corresponding validation and translation libraries on the FINplus Pilot Future service (end of February 2022).
How will ISO 20022 implementation impact different players in the industry?
ISO 20022 will impact all financial institutions active in cross-border payments as well as market infrastructures and corporates to bank flows, though only the cross-border payments and reporting messages are subject to the CBPR+ programme adoption timelines. Organisations will have to consider and implement solutions to process and store richer and structured ISO messages that will impact the core payment application, middleware, reconciliation, AML/KYC, archiving, reporting applications, messaging interface and acquisition channels. To extract and realise the true benefits of ISO 20022, it needs to be implemented end-to-end.
What standards management tools are available and where can they be found?
MyStandards is a web-based platform provided by SWIFT to facilitate the management and implementation of ISO 20022 (and FIN MT) standards and related market practice information. This collaborative platform provides access to the published guidelines (CBPR+ or market infrastructure related guidelines), user testing via the Readiness Portal and access to the Translation Rules, all available in MyStandards.
Will I be able to use FINplus as well as FIN for payments and cash reporting?
During the three-year coexistence period, financial institutions will be able to send ISO 20022 (MX); FIN (MT) or APIs (JSON) for messages in scope of CBPR+. As receiver, you may continue to receive FIN; ISO 20022; multi-format (MX with embedded translated MT) or APIs. The delivery format will depend if the payment message is processed by the transaction manager and on your preferred delivery format.
For more information, download our Connectivity Guidance.
Do I need to order FINplus or will it be automatically provisioned?
Customers who have already subscribed to FINplus Pilot future (message validation based on the future Standards release) can test In-flow Translation (receipt of multi-format MX messages) as part of their ISO 20022 testing plans. For all eligible customers to be part of the test service – without the need to subscribe individually – SWIFT has conducted a centrally administered mass provisioning (on 23 January 2022), based on the following eligibility requirements:
- BICs with user category ‘Supe’ (supervised institution) or ‘Nosu’ (non-supervised institution).
- All eligible BICs at the time of the central mass-provisioning will be included.
- New BICs or BICs that become eligible after the completion of the central mass-provisioning, in January 2022, will continue to be automatically provisioned to the FINplus pilot future.
- The central mass-provisioning is not applicable for BICs already registered in the FINplus Pilot future service.
SWIFT will also conduct a central mass-provisioning for registration to the FINplus live service in Q4 2022.
Will all the pilot (test) services carry all ISO messages?
The current FINPlus Pilot service supports all ISO 20022 messages in scope of the release 2.1 of CBPR+ messages collection, securities messages for SRD II (Shareholders Rights Directive II) and CSDR (Central Securities Depositories Regulation). Over time, as the scope of messages required by the community evolves, additional payments, trade, securities, foreign exchange, treasury and regulatory domains will be supported.
What are the readiness steps for November 2022?
Adoption of ISO 20022 has technology and operational impacts, with general availability from November 2022. The first key activity is to build internal awareness about the change through the various resources SWIFT makes available (e-learning, webinars, document centre); initiate impact assessment (technology and business) and engage with your application vendor(s). Next, your project team should move into the implementation phase, supported with solo and community testing, prior to executing your adoption approach with a gradual or big-bang transition to live.
Ensure you upgrade your interface and understand the impact on your operations and compliance. Make sure your interface is upgraded to be able to receive ISO and/or multi-format messages. From November 2022, anyone can expect to have to start processing ISO. This will impact your entire payment chain, from the core banking application, to reconciliation, liquidity management, compliance controls and archival systems. Assess how your FCC controls and applications are coping with the ISO 20022 data structure, including archiving of ISO 20022 and the SWIFT shared services you use (gpi and compliance products).
Plan your testing activities using tools already available, including FINplus testing, CPBR+ structure validation on MyStandards, the Translation Portal, CBPR+ full message flows using the Test Sparring Partner, performance, and business continuity testing.
Do I have to implement ISO 20022 for all flows at once or can I continue to send MTs?
You are free to choose which channel/format you use as a sender, including a mix of different channels/formats (FIN/MTs or FINplus/ISO). For instance, you might want to prioritise your EUR corridor for your migration to ISO, due to the migration of Target2 in November 2022, and continue on MTs for other currencies with progressive adoption in line with back office readiness. This choice applies for all business flows beyond payments, including securities, according to current and future business needs.
What are the differences between FIN and FINplus?
To enable the exchange of ISO 20022 messages over SWIFTNet, SWIFT is deploying a FINplus many-to-many InterAct service supporting ISO 20022 messages, for payments and beyond. It offers a similar number of features as FIN as well as the validation of industry usage guidelines such as CBPR+. Core messaging services developed for the FIN service, including non-repudiation, retrieval, closed user group, delivery monitoring, message validation, RMA, and copy and analytic services, are also provided on FINplus.
From November 2022, if my counterpart sends me a pacs.008, which format I will receive?
SWIFT will, by default, deliver multi-format MX via FINplus. Change will be managed through user interface to dynamically select your preferred delivery format, per BIC 8 or BIC 11, with delivery criteria based on currency and/or message types.
What testing options are available for CBPR+?
The customer testing journey will vary according to your ISO 20022 readiness, either starting the coexistence period on legacy FIN applications (MT only), being able to send and receive ISO messages natively (MX only) or mixing MT and MX during back-office transition. The following collaborative platform, tools and service environment are available to support solo, sparring and community testing:
- MyStandards Readiness Portal – for testing messages against CBPR+ usage guidelines and identifying syntactical and semantic errors.
- Translation Portal – for testing the mapping rules between the MT and ISO 20022 formats and ensuring downstream applications can be shielded from format changes, where relevant.
- FINplus Pilot future service – is provisioned with the CBPR+ message collection and the In-flow Translation service to validate your end-to-end technical and functional readiness with selected counterparts.
- Test Sparring Partner – provides a fictitious counterparty to test with over the FINplus pilot future service, in sending, receiving and relaying directions.
How do I know my counterparties’ readiness for ISO 20022?
A new ISO 20022 Readiness directory allows users to view your counterparties’ readiness for the various ISO 20022 FINplus messages. It indicates if a participant (BIC 11 or level 3 DN) is already sending or receiving ISO 20022 messages including CBPR+ messages. The data is updated on a monthly basis and is available on the SWIFTRef download page.
What is the cost of the FINPlus migration? Are there extra fees?
The new pricing for ISO 20022 messages has been published in an updated Price List for Messaging and Solutions.
Am I obligated to upgrade my bandwidth or to use leased lines?
There is no obligation to use leased lines for FINplus. However, SWIFT has been conducting internal performance benchmark exercises throughout 2021. The results have been translated in an estimation of necessary resources for ISO 20022/CBPR+ messages on the FINplus service in the updated FINplus Connectivity Packs documentation.
How will gpi be impacted by the ISO 20022 migration? If my institution is using MT for gpi confirmation and tracking today, when should we implement ISO 20022 for gpi?
The gpi ISO strategy remains unchanged; making it easy to protect gpi value and limit impact for gpi customers; increase benefits to gpi customers by leveraging ISO 20022 data richness to improve existing functionalities; and offer a seamless tracker experience, independent of the format or channel that SWIFT members use for their payments and exchanges with the Tracker.
What is the implication of the new central RMA to the ISO 20022 migration? What are the key functional features of the portal?
The main driver of the RMA evolution project is to ensure a transparent adoption of ISO 20022 and allow an institution to choose the technical channel (FIN, FINplus). Freedom to choose the technical channel means that institutions must keep RMA relationships synchronised across these services at all times.
SWIFT will assist the community to keep authorisations synchronised in the following:
- Day 1 synchronisation – FINplus bootstrap
- Continued synchronisation with local authorisation consistency check
You can find more information on RMA evolution here.
When should I start sending rich ISO data?
The migration to ISO 20022 is taking place at different speeds in different markets.
The US – a huge market involved in many transactions – has recently decided not to make the full move until November 2023 (The Clearing House - TCH) and March 2025 (the Federal Reserve Bank - FED). The eurozone will go live in November 2022.
The PMPG have updated their best practices for ISO 20022 migration stating that, to avoid truncation, institutions should hold off using rich data until November 2023. SWIFT supports this PMPG guidance.
The start of the coexistence period, in November 2022, is a time for our community to adopt ISO 20022 consciously and carefully, continuing to take on board all the latest guidance and developments across markets.
How do I retrieve missing or truncated data where a previous agent or payment market infrastructure is not able to relay ISO 20022 rich content?
The CBPR+ working group has developed a common market practice on how to report truncated or missing information in the MT standard sent to an agent.
This guidance helps identify the essential missing data to be sent from the sender of an MT message to its receiver. It also defines the roles and responsibilities for reporting missing or truncated information to the next agent in the payment chain where this next agent will only receive the MT part of the message. The guidance also provides a format to carry the essential missing data and the truncated data.