The Federal Reserve Board on Monday announced that the Federal Reserve Banks will adopt the ISO 20022 message format for the Fedwire Funds Service.
The change will allow for enhanced efficiency of both domestic and cross-border payments, and a richer set of payment data that may help banks and other entities comply with sanctions and anti-money laundering requirements.
The Board also invited public comment on a revised plan for migrating the Fedwire Funds Service to the new message format. Specifically, the Board is proposing that the Reserve Banks adopt the new message format on a single day, rather than in three separate phases as previously proposed.
The Fedwire Funds Service is a real-time gross settlement system owned and operated by the Federal Reserve Banks. It enables businesses and financial institutions to transfer funds quickly and securely.
The ISO 20022 format was developed by the International Organization for Standardization, which is an independent, non-governmental organization that publishes standards for a broad range of industries.
Comments are due 90 days after publication in the Federal Register, which is expected shortly.