FAQ Swift ISO 20022
With this page the most important features of the Swift ISO20022 migration will be explained, as well as INGs approach towards this extensive change program.
Jump straight to your question:
- What is ISO 20022 migration
- Why is ISO 20022 being introduced
- When will ISO 20022 be introduced and where
- Who will be impacted by this change
- What do I need to do as a corporate
Correspondent Banking (CBPR+)
- What is CBPR+
- What SWIFT MT messages are in scope for the ISO 20022 migration
- What are the translation rules for MT to ISO 20022 messages
- What is SWIFTs approach towards structured address data for debtor and creditor
Market infrastructure changes
- What market infrastructures will adopt the ISO 20022 standards and by when
- What is specific to the ISO 200222 adoption by TARGET2 (EUR)
- What is specific to the ISO 200222 adoption by CHAPS (GBP)
- How is ING organized to manage this change
- What are INGs requirements for STP processing of pacs.008 and pacs.008stp messages
- What is meant by INGs like-for-like approach
- What is meant by INGs country implementation approach
- What are ING’s timelines for implementing ISO 20022 messages
- Will ING start sending camt.053 reporting messages as of November 2022
- Will ING be using a translator
- How is ING dealing with truncation risk
- How do we deal with messages subject to bilateral agreements
- What can clients expect from ING
- Who can I contact at ING for additional information
- When will ING start sending and receiving camt.052/camt.053/camt.054 messages
ISO 20022 migration is a global initiative, which aims to achieve harmonized standards for the exchange of high-value payment messages. ISO 20022 is a messaging standard that creates a common language for payment data across the globe, enabling faster processing and improved reconciliation. SWIFT will introduce ISO 20022 for Financial Institutions in November 2022 for cross border payments and reporting (CBPR+). For Market Infrastructures, like Target2 in Europe, migration to ISO 20022 is set to be introduced as part of their modernization programs.
With ISO 20022, a common language and model for payment data has been established. With ISO 20022, data will become richer, more structured and standardized, enabling efficient processing, interoperability and more efficient monitoring.
Swift will introduce ISO 20022 as of November 2022. As of that date, Financial Institutions will have to be able to receive ISO 20022 payment messages. As of November 2025, all messages, both sending and receiving must be based on ISO 20022. During the co-existing period, from Nov 2022 until Nov 2025, Financial Institutions are still allowed to send current MT messages. This period is meant for FI’s to be able to gradually adapt to the new ISO20022 standards. The adaptation of ISO 20022 in market infrastructures differs per country/currency. A full overview of migration dates and adaptation approaches can be found on SWIFT Payment Market Practice Group document centre.
All Financial Institutions currently sending or receiving SWIFT MT messages will be impacted, either by SWIFTs CBPR+ program or by Market Infrastructure changes.
Although the current scope of the ISO20022 change is focused on Financial Institutions, also Corporates most likely will have to change their ERP/TMS systems, to be able to process richer and structured name/address information of beneficiaries and fill in additional mandatory fields in the future.
CBPR+ is SWIFTs program for adopting ISO20022 for cross border payment and reporting messages in the correspondent banking space. The use of ISO 20022 messages in SWIFT cross-border payments will start in November 2022 with a coexistence phase up to November 2025, where the old MT messages for cross-border payments and cash reporting will be replaced. More information in SWIFTs ISO 20022 adoption program can be found on SWIFT ISO 200222 program.
The following MT messages will be migrated to ISO20022 messages starting November 2022:
|head.001.001.02||Business Application Header|
|MT102/103||pacs.008.001.08||FI To FI Customer Credit Transfer|
|MT200/201/202/203/205||pacs.009.001.08||Financial Institution Credit Transfer|
|MT204||pacs.010.001.03||Interbank Direct Debit|
|MT103/202 ret||pacs.004.001.09||Payment Return|
|pacs.002.001.10||FI To FI Payment Status Report|
|MT941/942||camt.052.001.08||Bank To Customer Account Report|
|MT940/950||camt.053.001.08||Bank To Customer Statement|
|MT900/910||camt.054.001.08||Bank To Customer Debit Credit Notification|
|MT210||camt.057.001.06||Notification To Receive|
|MT920||camt.060.001.05||Account Reporting Request|
|MT192||camt.056.001.08||FI To FI Payment Cancellation Request|
|MT196||camt.029.001.09||Resolution Of Investigation|
|MT101 relay||pain.001.001.09||Interbank Payment Instruction|
These messages will replace current SWIFT MT messages. A full overview of messages covered by CBPR+ can be found on SWIFT ISO 20022 program
To enable standardization and end-to-end straight-through processing, SWIFT together with the CBPR+ working group (represented by the industry) defined a clear set of standard translation rules between ISO 20022 and MT for most of the messages. These will also be applied by SWIFTs Transaction Manager to avoid misinterpretation and/or divergent adoption of translation rules across banks and/or communities.
Please access the SWIFT MyStandards platform, which is available to all SWIFT clients. It is the chosen tool to be used by the community as the primary source for ISO 20022 messages (e.g. CBPR+ Usage Guidelines) and it also gives you access to the Translation Portal where you can test translation rules.
As of November 2022, structured addresses information will be expected for any payments initiated using ISO 20022. In addition, any "new" ISO 20022 party elements (i.e. Ultimate Debtor, Ultimate Creditor, and Initiating Party) must contain structured addresses. During the co-existence period, unstructured address information can still exist also in ISO20022 messages in cases where Financial Institutions uses translator tools and/or haven’t updated their front-end client infrastructure yet. While unstructured address data will still be supported until November 2025, it is strongly recommended to start deliver structured address with the introduction of ISO 20022 as of November 2022 for payments exchanged via SWIFT. Complete and structured data is critical to the success of the initiative and an uninterrupted payment processing across the whole value chain.
The adaptation of ISO 20022 in market infrastructures differs per country/currency. A full overview of migration dates and adaptation approaches can be found on SWIFT Payment Market Practice Group document centre.
With respect to high volume market infrastructures, in INGs focus will be on.
- the Euro infrastructures TARGET2 and EURO1/STEP1, both to be implemented in November 2022, and
- GBP/CHAPS in the UK, in June 2023.
In November 2022, the ECB will unite and centralize its instant payments (TIPS), real-time gross settlement (RTGS) and securities settlement (T2S) systems. One of the key changes introduced with this consolidation project is the migration of the messaging format to ISO 20022. The new T2 platform will be implemented with a big bang approach, meaning that there will be one migration weekend for all Financial Institutions participating on the platform. An extensive test approach must assure a smooth migration in the weekend of 20/21 November. As of November 2022, the new T2 platform will be fully operational.
More information on INGs approach towards T2 consolidation can be found on TARGET2.
More information on the ECB T2 Consolidation project can be found on the ECB website.
More information on usage guidelines can be found on Swift MyStandards.
Instead of the original phased approach, the Bank of England has announced that the transition will now take place as a single event in April 2023, rather than two separate stages in June 2022 (migration from MT to MX (ISO) network) and February 2023 (enablement of enhanced data). Enhanced data will be immediately supported from April 2023; removing the need for an initial like-for-like implementation stage.
Within ING an extensive program is in place, managing all ISO 20022 related changes, both for TARGET2, CBPR+ and other market infrastructures. The program is taking care of all changes for all ING locations worldwide and specifically for those locations servicing Financial Institutions. ING is committed to assure a smooth migration from the current MT message exchange to the new ISO 20022 messages. If you like to learn more on how ING is organized and is preparing for the ISO20022 migration, please contact your regular contact within ING.
ING follows SWIFT MyStandards for CBPR+; please use the instructions on SWIFT MyStandards to assure STP processing.
Next to that, for PSD compliant payments send via pacs.008, please make sure the following instructions are used:
- Both legs of the transaction are within EEA area (both ordering customer and beneficiary need to be within EEA area) and the currency of the transaction needs to be within EEA.
- Charge Bearer: only option SHAR is allowed
- Debtor: fields must be filled according to EU regulations on payer information
- Creditor Account: IBAN must be filled in for all the countries that adhered to this account format, including PSD2 transactions.
These requirements have not been changed compared to current STP requirements for MT103. If there are missing / incomplete details in the instruction, this will be considered as non-STP and an additional charge could be applied.
With like-for-like, ING is aiming to migrate to ISO 20022 without any changes to the content of current used MT messages. Where possible, structured address information will be provided if not yet the case, but in this phase, ING is not focusing on making use of additional features ISO 20022 is offering on top of what is currently available in the current MT messages.
Since we provide clients payment services out of different ING locations worldwide, we have adopted a country-by-country approach. Country specific change plans are focus on local market infrastructure changes on the one hand, respecting the general CBPR+ principles on the other hand. For Financial Institutions making use of multiple ING locations for processing payment transactions, this might result in different timelines per country for receiving ISO 20022 messages send by ING. ING will however be fully reachable, being able to receive ISO20022 messages send to us as per November 2022.
Detailed information on timelines for implementing ISO 20022 messages (incoming and outgoing) per ING entity can be found on the CBPR+ page.
First priority for ING is on being reachable and to adhere to market infrastructure changes. Second, ING will prepare for sending ISO20022 messages within the scope of CBPR+. The third priority is on sending CBPR+ reporting messages. ING will therefore not start sending camt.053 reporting messages before the end of 2023. Client migration to camt.053 will start early 2024, based on client’s preferences. Based on client’s needs, ING Belgium (our main hub for offering intermediary services) will be able support a dual phase, sending both MT950 and camt.053 messages.
The strategy of ING is to update all core payment platforms to be “native” ISO 20022 compatible. For those ING locations who are currently in the process of upgrading their payment infrastructure to the core platform of ING, a translator will be used as a short-term interim solution.
In case ING uses a translator to process incoming MX messages, ING will remain using the original MX message when applying KYC and money laundering processes to guarantee the same quality of processing as today. When acting as an intermediary bank, banks receiving MT notifications are advised to incorporate the Swift original message in their processes. In cases where a translator is used, the risk of data truncation occurs, effecting information provided to our clients.
First priority for ING is on being reachable and to adhere to market infrastructure changes. Second, ING will prepare for sending ISO20022 messages within the scope of CBPR+. The third priority is on sending CBPR+ reporting messages and messages in scope of bilateral agreements (MT101, MT940/942). ING will therefore not change its current bilateral agreements with other Financial Institutions before 2023.
Being participant of the ECB/TCCG (Target Consolidation Consultative Group), chair of the WG Interbank T2/T2 Consolidation in the Netherlands and member of the Swift Board, ING is highly committed making the migration to ISO20022 a success. You can expect from ING to be compliant with market infrastructure changes to ISO 20022 and with the SWIFT CBPR+ timelines for sending and receiving ISO 20022 messages. We will inform our clients on changes that will take place, both on the migration from MT to ISO 20022 as on specific content requirements that might change. Clients making use of INGs Target subparticipation services will be proactively informed on the implications of the T2 Consolidation project.
If you like to learn more on how ING is preparing for the ISO20022 migration, please contact your regular contact within ING.
ING group entities will not accept receiving camt.052, camt.053 and camt.054 reporting messages, as defined in SWIFT CBPR+, from their correspondent banks or counterparties until further notice. These messages will be blocked on the swift RMA portal and you will not be able to submit them to any ING entities. We anticipate to gradually unblock these messages after the release of November 2023. Please continue to send the corresponding SWIFT MT messages until further notice.
ING group entities will not accept receiving pain.001 and pain.002 messages, as defined in SWIFT CBPR+, from their counterparties until further notice. These messages will be blocked on the swift RMA portal and you will not be able to submit them to any ING entities. We anticipate to gradually unblock these messages after the release of November 2023. Please continue to send the corresponding SWIFT MT messages until further notice.