Hot Topics: Q3, 2024
by Kas Stewart, SVP & AAP
The Federal Reserve has announced the retirement of Fedwire Funds Offline Services on December 31, 2024.
If you do not have a Federal Reserve Account, this change will not affect you.
If you are using this service as a contingency wire service for those occasions when a wire is misdirected to your Federal Reserve account, you will need to make alternate arrangements.
The Bankers Bank offers a Federal Reserve Service Provider arrangement that allows us to function as your wire processor and allows you to send, receive and transmit wires using your routing transit number. This does not replace the wire services at The Bankers Bank, it supplements them. When implemented, Federal Reserve wires are redirected to your account at The Bankers Bank.
Current wire fees apply, but The Bankers Bank does not charge for this service.
If you would like to learn more about this possibility, please contact your Bankers Bank relationship manager for more details and the agreement that needs to be completed for the Federal Reserve.
Please start this process as soon as possible to comply with the December 31 deadline.
ISO20022
You are already receiving information about the Federal Reserve plan to change the existing wire format to ISO20022 on March 10, 2025. Staff at The Bankers Bank has been involved with this project for some time to prepare for this migration.
You may want to inventory systems that support your wire operations and reach out to vendors to ensure their readiness also. Some examples could be Customer facing systems like online banking or mobile payments, cash management systems, compliance screening or fraud monitoring, or accounting and billing.