It is now the time for enterprises to get started on their migration to ISO 20022
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Beginning March 2023, SWIFT will fully support i.e., accept, and translate, the ISO 20022 format from MT messages. At this point in time, it will not yet be mandatory for banks. The official migration deadline for financial institutions is November 2025.
On this date, all FIs must be able to send and receive ISO XML messages. SWIFT has announced that between March 2023 and November 2025, there will be a coexistence period of both format types. All banks must embrace this change quickly and efficiently and yet smaller banks are already struggling to meet the deadline. Financial institutions will, each at their own pace, stop supporting and accepting legacy MT formats, also from their corporate clients.
In addition, some banks have begun requesting data formatted according to the new specifications from financial service and system providers. SWIFT is not requiring corporates to convert by November 2025. They want instead to educate companies on the benefits and advantages of moving to ISO 20022. This will, in fact, allow enterprises to continue using MT formats until at least the end of 2026. However, this is a huge disconnect as the MT format is not 100% structured, which can result in data formatting issues and truncation. In addition, the “word on the street” is that SWIFT will charge corporates for format conversion at some point in the future.
Download the full whitepaper below to learn more about the timelines, milestones, and expectations for treasury teams and their companies as the ISO 20022 migration continues forward!
