Harmonised ISO 20022 Data Requirements for Cross-Border Payments
What is ISO 20022 and why is it important for cross-border payments?
– ISO 20022 is an international standard that defines the structure and format of financial messages, such as payment instructions, status reports, and investigations.
– ISO 20022 allows for more consistent and structured data to be shared across different payment systems and solutions, which can enhance the interoperability and efficiency of cross-border payments.
– ISO 20022 also enables richer and more transparent information to be included in payment messages, such as the purpose, charges, currency conversion, and remittance details of a transaction.
– ISO 20022 is being adopted by many payment systems around the world as a common messaging standard, replacing domestic proprietary standards or the SWIFT MT standard.
What are the CPMI’s harmonised ISO 20022 data requirements?
– The CPMI is a committee of central banks that works to improve the functioning of payment systems and market infrastructures.
– The CPMI has developed harmonised ISO 20022 data requirements for cross-border payments in collaboration with the industry, as part of the G20 cross-border payments programme.
– The requirements provide guidance on how to use ISO 20022 messages in a consistent way to achieve faster, cheaper, more accessible and more transparent cross-border payments.
– The requirements consist of three main components: a core message set, general requirements, and a minimum required data model.
How to implement the CPMI’s harmonised ISO 20022 data requirements?
– The CPMI recommends that payment system operators and participants align their ISO 20022 usage guidelines with the harmonisation requirements by end-2027.
– The CPMI will work with the industry to monitor the implementation progress and provide support where needed.
– The CPMI will also maintain the harmonisation requirements and update them as necessary to reflect changes in market practices and standards.
– The CPMI invites feedback from market participants on the requirements and encourages them to prepare for their implementation.
What are the benefits of the CPMI’s harmonised ISO 20022 data requirements?
– The CPMI’s harmonisation requirements are a key deliverable for the G20 cross-border payments programme and a significant contribution to improving cross-border payments.
– The widespread and consistent adoption of the requirements will generate network effects and benefits for all stakeholders in the cross-border payments chain.
– The requirements will help achieve the G20 targets for enhancing cross-border payments in terms of cost, speed, access and transparency.
– The requirements will also support other public policy objectives such as compliance, fraud prevention, innovation and competition.
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