ISO 20022 Webcast Series Module 10: Review - BNY Mellon
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ISO 20022 Webcast Series Module 10: Review 4 November 2021 Information Classification: CONFIDENTIAL
Available ISO 20022 Training Modules
RTGS
M I G R AT I O N SWIFT
DEMYSTIFYING PLANS TRANSACTION DEEP DIVE DEEP DIVE
ISO 20022 CBPR+ MANAGEMENT PA C S . 0 0 8 PA C S . 0 0 9
MESSAGE P L AT F O R M
September 2020 December 2020 February 2021
FLOWS November 2020
October 2020
ARE YOU
WELL
DEEP DIVE DEEP DIVE SWIFT P R E PA R E D
DEEP DIVE
PA C S . 0 0 4 & C A M T. 0 5 6 & TRANSACTION FOR A
PA C S . 0 0 2 MANAGER C A M T. 0 5 4 SUCCESSFUL
C A M T. 0 2 9
July 2021 ISO 20022
April 2021 May 2021 June 2021
M I G R AT I O N ?
November 2021
All BNY Mellon ISO 20022 Learning Module presentations and recordings are located on the BNY Mellon ISO
20022 Resource Center at BNYMellon.com: iso20022migration@bnymellon.com
2 Information Classification: CONFIDENTIAL
ISO 20022 WEBCAST SERIES MODULE 10: REVIEW Market Initiatives Update Information Classification: CONFIDENTIAL
ISO20022 Migration Timelines for major Market Infrastructures
(EUR, GBP, USD)
SWIFT CHAPS SWIFT MT Retirement
2021 2022 2023 2024 2025
Like-for Like implementation
CHAPS T2 & Euro1 (1) CHIPS & Fedwire
Enriched implementation
CHIPS/Fedwire
coexistence upgrade Legacy adaptation
End of co-existence
All GBP payments via CHAPS are transmitted in ISO20022 like-for-like format (Jun.2022)
All EUR payments via T2 or Euro1 are transmitted in enriched ISO20022 format (Nov.2022)
All banks on SWIFT may send in enriched ISO20022 format on the network. (Nov.2022)
All banks on SWIFT must be able to receive enriched ISO20022 messages. (Nov.2022)
All US banks connected to CHIPS and Fedwire must upgrade to updated legacy formats and be able to receive “ISO container field” (Nov.2022)
All GBP payments via CHAPS are transmitted in enriched ISO20022 format (Feb.2023)
All USD payments via CHIPS and Fedwire are transmitted in enriched ISO20022 format (tbc 2023/2024)
All banks on SWIFT are sending in enriched ISO20022 format
with structured data. MT messages in scope will be retired. (Nov.2025)
(1) BNY Mellon not connected to Euro1
4 Information Classification: CONFIDENTIAL
ISO 20022 Migration Timelines: Other Markets
LIVE Bangladesh – RTGS 2022 Singapore – MAS
Brunei – BN-RTGS Q2 Thailand – BOT
China – CNAPS2
Australia – RITS
India – NG-RTGS 2022
Q4
Canada – PayCan
Japan – BOJ-Net
New Zealand – ESAS
Philippines – PHILIPASS
Switzerland – SIC
2023
Hongkong - CHATS
Q4
5 Information Classification: CONFIDENTIAL
ISO 20022 WEBCAST SERIES MODULE 10: REVIEW CBPR+ (Cross-Border Payments & Reporting+) Information Classification: CONFIDENTIAL
CBPR+: Getting used to the Usage Guidelines concept
Global ISO 20022
Standard
Enhanced UG
Like for Like
(L4L) UG
Also includes
the ISO External Code Lists
A Usage Guideline is a Market Practice for ISO 20022 as defined in SWIFT MyStandards tool, eg:
• Removal of optional elements • Restriction/addition of codes
• Multiplicity change (optional element made mandatory, • Addition of rules and guidelines
number of occurrences)
7 Information Classification: CONFIDENTIALEnriched Identification Options
Pacs.008.001.01 example
UETR(1) UETR UETR UETR Exact 36 Characters
End-to-End End-to-End End-to-End End-to-End Max 35 Characters
ID ID ID ID
Instruction ID Instruction ID Instruction ID Instruction ID Max 35 Characters
Transaction Transaction Transaction Max 35 Characters
ID ID ID
Clearing Max 35 Characters
System ID
End-to-End: once assigned in the Payment Transaction, the identification must be transported unchanged throughout the whole payment chain
Point-to-Point: each Agent in the payment chain can replace the existing reference with its own reference
(1) If the Corporate is not providing the UETR, it will be initiated by the Debtor Agent.
8 Information Classification: CONFIDENTIALISO 20022 Actors in an E2E pacs.008 Payment Chain
Understanding a new language
pain pacs camt
pacs.008
Debtor Initiating Debtor Instructing Instructed Creditor Creditor
Party Agent Agent Agent Agent
:50a :52a Sender Receiver :57a :59a
1 2 3 1 2 3 1 2 3
Forwarding Previous Instructing Reimbursement Intermediary Ultimate
Ultimate Agents
Agent Agents Agents Creditor
Debtor
:72:/INS/ :53a :54a :55a :56 :72:/INTA/
a
MT Field
new party
introduced with
ISO20022
9 Information Classification: CONFIDENTIALAgents & Parties Postal Address: Structured vs Unstructured
Teal data mapped to MT format
Example: Parties Orange data truncated
From pacs.008 • If AnyBIC is absent, then Name is mandatory
Usage Guidelines • If Postal Address is present, then Name is mandatory
Rules • If Structured Address is used, then Country and Town name must be present
MX MT
S :59F:/BE12345678000011112222333
T Joseph Chittenham and Christopher Englewood 1/Joseph Chittenham and Christopher
R Family Clinic 1/Englewood Family Clinic
U 2/The New King Kamehameha Boulevar+
The New King Kamehameha Boulevard 3/US/Honolulu, 98600, Hawaii, Kali+
C
T
Structured 123
Business District Tower 3
U 25th
R 5003
E 96800
D Honolulu
Kalihi Palama
Hawaii
US
BE12345678000011112222333
Unstructured
10 Information Classification: CONFIDENTIALCBPR+ Message Portfolio
Usage Guidelines available on www.swift.com/mystandards
Core Payment Messages Exception Messages
FIN MT ISO 20022 FIN MT ISO 20022
MT103, MT103 STP, MT103 Remit pacs.008.001.xx (Core, STP) A new MT103 Return, new MT202
pacs.004.001.xx
Return
MT202, MT202COV, MT200, MT205,
pacs.009.001.xx (Core, ADV, COV)
MT205COV MT103 Reject / MT202 Reject pacs.002.001.xx (Negative)
MT204 Pacs.010.001.xx n/a pacs.002.001.xx (Positive)
n/a (cancellation of MT210) Camt.058.001.xx
Payment Initiation
MTn92 camt.056.001.xx
FIN MT ISO 20022 MTn96 camt.029.001xx
MT101 (Relay) and Reject pain.001 (Relay), pain.002
Planned for 2023
Cash Management Messages FIN MT ISO 20022
FIN MT ISO 20022 MT104, MT107 pain.008, pacs.003
MT 210 camt.057.001.xx MT190, MT191 camt.105, camt.106
MT 900/MT 910 camt.054.001.xx MT110, MT111, MT112 camt.107, camt.108, camt.109
MT 920 camt.060.001.xx set of case management messages
MTn95
under review
MT 941/MT 942 camt.052.001.xx
MT 199 TBC
MT 940/MT 950 camt.053.001.xx
11 Information Classification: CONFIDENTIALScopes – Core Payments Portfolio
Pacs.008.001.08 (Core & STP)
The ‘Financial Institution To Financial Institution Customer Credit Transfer’ message is sent by the debtor agent
to the creditor agent, directly or through other agents and/or a payment clearing and settlement system. It is used to
move funds from a debtor account to a creditor.
Set of characteristics shared by all individual transactions
Group Header
included in the message.
Pacs.008.001.08
Credit Transfer Set of elements providing information specific to the
Transaction individual credit transfer(s).
Information Note: Limited to 1 for CBPR+ and HVPS+
12 Information Classification: CONFIDENTIALScopes – Core Payments Portfolio
Pacs.009.001.08 (Core, COV & ADV)
The ‘Financial Institution Credit Transfer’ message is sent by a debtor financial institution to a creditor
financial institution, directly or through other agents and/or a payment clearing and settlement system. It is used
to move funds from a debtor account to a creditor, where both debtor and creditor are financial institutions.
pacs.009 Core Core Financial Institution Credit Transfer (MT 202)
pacs.009 COV Cover Financial Institution Credit Transfer (MT 202COV) (to cover a pacs.008)
pacs.009 ADV Core Financial Institution Credit Transfer used to Advise a Cover Payment using the pacs.009 Core (New)
Set of characteristics shared by all individual transactions
Group Header
included in the message.
Pacs.009.001.08
Credit Transfer Set of elements providing information specific to the
Transaction individual credit transfer(s).
Information Note: Limited to 1 for CBPR+ and HVPS+
Underlying Provides information on the underlying customer credit transfer
Customer for which cover is provided (copy of the underlying pacs.008
Credit Transfer elements) Available in the COV Flavour only
13 Information Classification: CONFIDENTIALScopes – Core Payments Portfolio
Pacs.004.001.09
The ‘Payment Return’ message is sent by an agent to the previous agent in the payment chain
to undo a payment previously settled.
Set of characteristics shared by all individual transactions
Group Header
included in the message.
Pacs.004.001.09
Information concerning the original transactions, to which
Transaction the return message refers.
Information Note: Limited to 1 for CBPR+ and HVPS+
Original
Key elements used to identify the original transaction
Transaction
Reference that is being referred to.
14 Information Classification: CONFIDENTIALScopes – Core Payments Portfolio
Pacs.002.001.10
The ‘FI To FI Payment Status Report’ message is sent by an instructed agent to the previous party in the payment chain.
It is used to inform this party about the positive or negative status of an instruction (either single or file). It is also used to
report on a pending instruction.
Set of characteristics shared by all individual transactions
Group Header
included in the status report message.
Pacs.002.001.10
Transaction Information concerning the original transactions, to which the
Information status report message refers.
& Status Note: Limited to 1 for CBPR+ and HVPS+
Key elements used to identify the original transaction that
Original
is being referred to (copy of the pacs.008/pacs.009
Transaction
Reference elements) Note: Not used for CBPR+ and HVPS+
transactions
15 Information Classification: CONFIDENTIALTransaction Status: “Specifies the status of a transaction,
in a coded form”
If Transaction
Status/Code
equals RJCT, then
“Status Reason
Information/Reason”
is mandatory:
16 Information Classification: CONFIDENTIALScopes – Core Payments Portfolio
camt.056.001.08
The ‘FI To FI Payment Cancellation Request message’ is exchanged between the instructing agent and the instructed agent to request
the cancellation of a interbank payment message previously sent (such as FIToFICustomerCreditTransfer, FIToFICustomerDirectDebit or
FinancialInstitutionCreditTransfer).
The ‘FI To FI Payment Cancellation Request’ message supports both the request for cancellation (the instructed agent or assignee has
not yet processed and forwarded the payment instruction) as well as the request for refund (payment has been fully processed already by
the instructed agent - or assignee).
• Camt.056 & Camt.029 are part of
the E&I (Exception & Investigation)
set of messages
• E&I messages use the Case
Management concept, i.e. Assigner,
Assigner, Case Identification,
Case Creator
17 Information Classification: CONFIDENTIALScopes – Core Payments Portfolio
camt.029.001.09
The ‘Resolution Of Investigation’ message
is sent by a case assignee (in this case, the
Instructed
Agent of the camt.056) to a case creator/case
assigner (in this case, the Instructing Agent
of the camt.056).
This message is used to inform of the resolution
of a case, and optionally provides details about:
• The corrective action undertaken by the case
assignee
• Information on the return where applicable
18 Information Classification: CONFIDENTIALISO 20022 WEBCAST SERIES MODULE 10: REVIEW SWIFT ISO 20022 & Transaction Manager Information Classification: CONFIDENTIAL
SWIFT Transaction Manager & Migration Support
A New Operating Model Tr a d i t i o n a l M e s s a g e F l o w D e l i v e r y & Tr a n s l a t i o n
• In 2022 SWIFT will deploy a new FIN Channel
operating model strategy, leveraging a • Banks sending MT messages continue do
centralized message orchestration, so via FIN network
validation and translation platform • Messages initiated in FIN MT and
operating on the FINplus network exchanged in FIN MT end to end will remain
• This Transaction Manager will handle on FIN Network
the key ISO20022 payments and FINplus & Transaction Manager
some exception messages. Future Message Flow • All MX(2) messages are transmitted on the
• The Transaction Manager approach FINplus network
intends to
Translation
o build on gpi capabilities and maintain
• Banks can opt to receive messages from the
complete, end-to-end, message data
Transaction Manager in pure MX format,
and status information centrally
JSON/API or as multi-format MX
o eliminate data loss due to processing
• The multi-format MX includes the full ISO
and format transformation along the
message plus a translated and potentially
payment chain by maintaining a unique
truncated MT copy of the message
Transaction Copy of the payment
centrally accessible by all agents. • SWIFT’s messaging gateway solutions can
extract the MT copy and route according to
o simplify the ISO20022 migration for the
bank-defined rules and preferences
community
• MX messages that are not on the
o promote a frictionless payment
Transaction Manager can be supported with
experience through value-added
in-flight translation solutions on Interact
services such as validation services,
Messaging. In case of translation, multi
screening and fraud detection
format message is sent to the recipient.
(1) Traffic will be migrated gradually during a ramp-up period which remains to be specified
(2) MX = ISO20022 messages delivered via the SWIFT network.
20 Information Classification: CONFIDENTIALISO 20022 WEBCAST SERIES MODULE 10: REVIEW BNY Mellon preparedness and client support How does BNY Mellon support you? Information Classification: CONFIDENTIAL
Impact and Preparedness Checklist
Europe US Rest of World (1)
All Banks and all NBFIs on
CHAPS, T2, CHIPS,
Fedwire participants
• Full ISO20022 readiness for • Implement CHIPS and Fedwire legacy
EUR/GBP format changes in 2022 SWIFT should establish their
• Use of structured customer address • Full ISO20022 readiness for migration strategy and plan
• Manage data truncation issues (1) CHIPS/Fedwire by 2023/24 a dedicated ISO 20022
• Implement outbound SWIFT • Use of structured customer address by migration program.
messaging strategy 2023
Suggested Actions:
(send MT or ISO) • Implement outbound SWIFT messaging
strategy (send MT or ISO)
‒ Establish an impact &
readiness check list
Adjust for minimum requirements ‒ Involve vendors
Banks/NBFIs
• Connect to SWIFT’s new messaging platform, the Transaction Manager.
on SWIFT
‒ Estimate budget and
• Receive/process ISO200022 messages from SWIFT or
resources
• Use a translation solution and manage impact of potential data truncation
• Handle potential data truncation if message is passed on an MI that is not ISO20022 ready ‒ Plan and resource testing
Plan full migration strategy
‒ Organize internal trainings
‒ Plan internal & external
As a customer
of BNY Mellon
• Send SWIFT payments in preferred format until 2025 communication
• Receive advices and reporting (MT9xx) in preferred format until 2025
• Leverage fully ISO20022 compliant Online Banking capabilities for payment initiation and reporting ‒ Train client facing and
operations team
• Access BNY Mellon format specifications on SWIFT MyStandards and utilize Readiness Portal for testing
22 Information Classification: CONFIDENTIALBNY Mellon Implementation
Implementation Approach Enterprise Impact
BNY Mellon will … 6 market 7-year Multi-million
infrastructures/ program capital expense
• continue to accept payments in legacy SWIFT MT formats from clients until
regulatory bodies
2025.
• send ISO20022 payment and exception messages as of November of 2022.(1)
• continue to send statements in legacy SWIFT MT format until 2025
90+ 8 Technology hundreds
• adjust Online payment initiation services to ISO20022 as of November 2022
applications organizations of staff
• adjust Online channels to provide access to full ISO20022 transaction details affected involved impacted
Communications Readiness Support
Resource Center & Knowledge Library
Factsheets, FAQs, Learning Guides & Articles BNY Mellon will …
https://www.bnymellon.com/us/en/iso-20022.html
• publish all format guidelines and specifications on
MyStandards for easy and 24x7x365 access
Training
• Support on-demand client testing through the Readiness
In depth & micro-webcasts
available on demand Portal
• Anticipated availability in first quarter 2022
Contact us
iso20022migration@bnymellon.com
23 Information Classification: CONFIDENTIALISO 20022 Migration – Timelines, Portfolio & Support
TIMELINES PORTFOLIO
RTGS DATE STRATEGY
Jun 2022 Like for Like
CHAPS
Feb 2023 Enriched
SWIFT Nov 2022 Enriched
T2 Nov 2022 Enriched
Fedwire / Q4 2023
Enriched
CHIPS TBC
Live: China, Japan, Switzerland, Brunei, Bangladesh, India, Philippines
Planned: 2022: Canada, Singapore, Thailand, Australia, New Zealand
2023: Russia, Hong Kong
BNY MELLON SUPPORT COLLATERAL
How BNY Mellon will support our customers In Addition: External & Internal Information:
BNY Mellon has established an enterprise-wide ISO 20022 • Offer extensive training E-mail: iso20022migration@bnymellon.com
migration program across all lines of business. • Set-up one to one discussions bnymellon.com:
Based on client preference: https://www.bnymellon.com/us/en/iso-20022.html
• Support client testing using BNY Mellon’s
• Accept legacy formats until November 2025 portfolio of messages on MyStandards
& the Readiness Portal • Expert Insights • Learning Curriculum
• Send legacy messages until November 2025
• Factsheets • Q&A
24 Information Classification: CONFIDENTIALISO 20022 Migration – Industry & Market Infrastructure Strategies
S W I F T T R A N S A C T I O N M A N A G E R (Nov. 2022)
FIN Channel
Banks sending MT messages continue to do so via FIN network until November 2025
FINplus & Transaction Manager™
All MX messages are transmitted on the FINplus network:
• pacs.008/009/004/002 and camt.056/029 messages will be directed to the TM
• All remaining MX messages will be exchanged on FINPlus Service (outside of TM)
Translation
• Banks can opt to receive messages from the Transaction Manager in pure MX format,
or as multi-format message. The multi-format message includes the full ISO message plus
a translated and potentially truncated MT copy of the message, with a translation report
• MX messages that are not on the Transaction Manager can be supported with in-flight
translation solutions and delivered on FIN. Truncation may occur
C OEXISTENCE & INTEROPERABILITY
Coexistence 1: CHAPS
• From November 2022 through February 2023
• Incoming enriched ISO 20022 must be mapped to L4L CHAPS ISO 20022
• MT199 with truncated data will be exchanged between participants
Coexistence 2: Fedwire / CHIPS
• From November 2022 through Q4 2023 (Fed migration date TBC
by end Q4 2021)
• Incoming enriched ISO 20022 must be mapped to Fedwire/CHIPS
Legacy messages
• Fedwire/CHIPS legacy messages will include a container to transport
the MX message
25 Information Classification: CONFIDENTIALBNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may also be used as a generic term to reference the Corporation as a whole or its various
subsidiaries generally and may include The Bank of New York Mellon 240 Greenwich Street, New York, New York 10286, a banking corporation organized and existing pursuant to the
laws of the State of New York and operating in England through its branch at One Canada Square, London E14 5AL, England. BNY Mellon has various subsidiaries, affiliates, branches
and representative offices in the Asia Pacific Region which are subject to regulation by the relevant local regulator in that jurisdiction. The information contained in this presentation is for
use by wholesale clients only and is not to be relied upon by retail clients. Not all products and services are offered at all locations.
This presentation, which may be considered advertising, is for general information and reference purposes only and is not intended to provide legal, tax, accounting, investment, financial
or other professional advice on any matter, and is not to be used as such. BNY Mellon does not warrant or guarantee the accuracy or completeness of, nor undertake to update or
amend the information or data contained herein. We expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon any of this information or data.
Trademarks and logos belong to their respective owners. This material may not be reproduced or disseminated in any form without the prior written permission of BNY Mellon.
© 2021 The Bank of New York Mellon Corporation. All rights reserved.
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