United Kingdom (and EU regulation)

BoE webpage – A new messaging standard for UK payments: ISO 20022

By Albert Weatherill (UK) on October 14, 2020 Posted in Payment Services, United Kingdom

On 13 October 2020, the Bank of England (BoE) updated its webpage on the new messaging standard for UK payments, ISO 20022.

The webpage explains that the approach to ISO 20022 migration is as follows:

Phase 2 (TS2): The BoE will migrate the CHAPS payments messages to ISO 20022 in 2022; however the implementation date will move from April to June. From June 2022, the BoE will require all CHAPS Direct Participants to send and receive like-for-like ISO 20022 payment messages (pacs.008, pacs.009 (/COV) and pacs.004) using the like-for-like schemas. ISO messaging will be on a like-for-like basis only at this point (enhanced data will not be permitted). Migration to ISO 20022 messaging in 2022 remains critical for ensuring that the BoE is able to introduce the new RTGS2 core ledger and settlement engine, and decommission the existing RTGS system in 2023.
Phase 2.1 (TS2.1): From February 2023; on the basis that the SWIFT correspondent banking network will migrate to ISO 20022 (with enhanced data enabled) in November 2022, the BoE will require all CHAPS Direct Participants to receive enhanced ISO 20022 payment messages and at a minimum continue to send like-for-like messages, using the enhanced schemas. Direct participants will be able to send enhanced messages, but will not be mandated to do so. The like-for-like schemas and rules will be forward compatible with the enhanced schemas and the like-for-like schemas will be decommissioned at this point.
Phase 3 (TS3): The BoE will then introduce the new RTGS2 core ledger and settlement engine in September 2023, around six months later than previously announced. At this point CHAPS direct participants must continue to be able to receive enhanced messages, as under Phase 2.1. There will be a further announcement confirming the approach to mandating the population of enhanced data. The BoE does not currently expect to mandate enhanced data before 2024.

The BoE will provide further guidance for CHAPS direct participants on these changes alongside technical information week commencing 26 October 2020.