In October 2017, the Federal Reserve Banks announced a timeline for their phased implementation of the ISO 20022 standard for payment messages for the Fedwire Funds Service, originally scheduled to begin with Phase 1 on November 23, 2020 and end in late 2023 (Press Release October 2017). ISO 20022 is an international standard for electronic data transmission, including payment messages, involving financial institutions.
However, on September 23, 2019, the Federal Reserve Banks announced a pause to the ISO 20022 phased implementation and that Phase 1 would not begin on November 23, 2020 (Press Release September 2019). The pause follows a request by the Payments Market Practice Group, a payments best practices expert group, to reconsider a phased implementation in favor of a same-day one. As communicated in May 2020, we will not implement the Phase 1 release in 2020 or 2021 and do not have any other message format changes for the Fedwire Funds Service planned through 2021. In April 2021, the Federal Reserve Banks informed the industry that effective November 21, 2022, we will implement changes to the Fedwire Funds Service’s proprietary message format to support cross-border ISO 20022 interoperability via a market practice when SWIFT, TARGET2 operated by the European Central Bank and EURO1 operated by EBA Clearing are expected to begin supporting fully-enhanced ISO 20022 messages.
In October 2021, the Board of Governors of the Federal Reserve System (Board) announced (Off-site) in a Federal Register notice (2021 Notice) (Off-site) that the Federal Reserve Banks will adopt the ISO 20022 message format for the Fedwire Funds Service. The Board also sought input on a proposal to migrate the Fedwire Funds Service to the ISO 20022 message format on a single day, targeted for no earlier than November 2023, rather than in three separate phases, as previously proposed. The comment period closed on January 4, 2022. The Board received 60 comments (Off-site) in response to the 2021 Notice.
In May 2022, the Federal Reserve Banks shared their plan to recommend to the Board that the implementation date be later than November 2023 and informed Fedwire Funds Service participants that the Board will announce the final implementation date in a future Federal Register notice.