ISO 20022 For Correspondent Banks
The ISO 20022 global messaging standard will start being used between banks performing FedWires beginning July 14, 2025, and for Swift messaging by November 2025. This document addresses common questions and answers regarding this change.
ISO 20022 FAQs
What is ISO 20022?
ISO 20022 is an international standard for electronic data interchange between financial institutions. It provides a common platform for the development of messages using a standardized XML syntax.
Why is ISO 20022 important for Correspondent Banks?
ISO 20022 enables richer, more structured data in payment messages, improving the efficiency and transparency of cross-border transactions. This standardization helps reduce errors, enhance compliance, and streamline processing.
When is the migration happening?
The migration to ISO 20022 for cross-border payments and reporting will be completed by July 14, 2025, for FedWire and November 2025 for Swift messaging. We will continue to support both Message Type (MT) and ISO 20022 messages from our Correspondent Banks.
What are the key benefits?
- Enhanced Data Quality: Richer and more structured data fields.
- Improved Compliance: Better data for regulatory reporting and compliance checks.
- Operational Efficiency: Reduced manual intervention and errors.
- Interoperability: Standardized messages facilitate easier integration with global systems.
How will ISO 20022 impact payment proccessing?
ISO 20022 will streamline payment processing by providing more detailed information in payment messages. This will help in faster reconciliation, better fraud detection, and improved customer service.
What changes are required for Correspondent Banks?
- Correspondent Banks may continue using their current format to send us batch wires.
- For Correspondent Banks with active Swift interface, there is no forced migration and no end of coexistence foreseen for corporate-to-bank (C2B) flows, according to Swift. However, there are clear advantages to moving C2B flows to ISO 20022 (common end-to-end standard, rich, structured data to improve automation, etc.).
- In accordance with IR 887 (June 2023), ISO 20022 usage guidelines for C2B have been formulated and agreed upon by a working group composed of corporates and banks. These messages were piloted in June 2024 and are available on FINplus for SCORE+ participants since November 2024. Corporates shall agree with their banks on the opportunity to join SCORE+ on an optional basis after November 2024 and start using ISO 20022.
- Correspondent Banks should consider updating their systems to handle ISO 20022 messages to realize the full benefits of the global ISO 20022 standard in the future. This includes upgrading software, training staff, and possibly reconfiguring workflows to accommodate the new data formats.
Can my institution begin sending ISO 20022 wire messages to Amegy Bank after July 14, 2025?
As an ISO 20022-ready bank, we are ready to be your trusted testing partner. You may send us test transactions in the Fed’s DIT2 environment, and we will provide feedback to help you build confidence before going live.
In addition to the current FedWire format (FAIM) being replaced by the ISO 20022 format, what other key changes are happening July 14, 2025?
- Terminology Updates – Changes to common field names, such as:
- “Beneficiary” becomes Creditor
- “Originator” becomes Debtor
- “Routing Number” becomes Agent ID
- “City” becomes Town Name (a required field under ISO 20022)
- Field Structure Changes – Address fields and other data elements will be more structured and standardized.
- International Wires – May require manual intervention initially, especially if required fields like “Town Name” are missing.
If we send our wire requests via Swift, do we need to make any changes?
Yes, after November 22, 2025, Correspondent Banks must use the ISO 20022 MX format for all cross-border wire transfers sent via Swift. This marks the end of the coexistence period that both legacy Swift MT messages and ISO 20022 messages will be accepted on the Swift network.