ISO20022
Are you ready for ISO20022 Implementation on July 14th? The Bankers Bank is.
ISO20022 FAQs
Yes! iWeb can be your contingency. We have tested with the Fed and customer banks. We are certified as ready.
Please refer to the ISO Mandatory Fields document under the resource page in iWeb.
Customer Credit Transfer refers to a transfer of funds in which one party to the transfer is NOT a financial institution. Financial Institutions are typically not customers.
Financial Institutions Transfer refers to a transfer of funds in which all parties to the transfer are financial institutions.
The differences between pacs.008 (formerly a CTR) and pacs.009 (formerly a BTR):
- pacs.008: This is a direct message used to initiate a payment transaction
- pacs.009: This is a settlement instruction message sent by the Debtor Agent, which may go through other agents until the funds reach the Creditor Agent. It contains information about the underlying pacs.008 for use in the cover scenario.
In summary: pacs.008 is primarily for initiating payments, while pacs.009 is used for settlement instructions related to those payments.
A Bank Identifier Code (BIC) is a unique code that is used to identify financial institutions globally. A BIC makes it easier to identify institutions involved in financial messaging, e.g., in ISO 20022 messages. Often associated with the Swift® financial messaging network, a financial institution does not have to be a Swift participant to obtain a BIC.
No. You do not need to provide a name and address if you identify a party/agent in an ISO 20022 message with the international standard BIC (Business Identifier Code), which is used to uniquely identify businesses involved in financial transactions.
Just like today, account information is optional, but you are encouraged to include account information to help facilitate straight through processing. You should include the account information in the corresponding party/agent element, e.g., the account of the Debtor (originator) in the Debtor Account element using either the Identification/Other option for domestic account numbers (e.g., DDA numbers) or the Identification/IBAN option when you have an International Bank Account Number (IBAN) account number.
Most known use cases of the service message are replaced by the following ISO 20022 messages that have been included in the funds transfer message in iWeb and should be used instead of service messages:
- Return request and response — Fedwire Funds Service customers will be able to send a camt.056 to request the return of the amount of a previously settled payment order.
- Request a status of a previously sent payment or drawdown request — Fedwire Funds Service customers will be able to send a pacs.028 message to another Fedwire Funds Service customer to request a status of a previously sent drawdown request.
For the remaining use cases, two ISO 20022 messages, i.e., Investigation Request (camt.110) and Investigation Response (camt.111) have been added to the Fedwire Funds Service ISO 20022 message portfolio to allow customers to deal with exceptions and investigations with wires sent over the Fedwire Funds Service.
All US Treasury tax payments must be made using the customer credit transfer message (pacs.008). Fed has published guidance on how to format a customer credit transfer message for sending US Treasury Single Payer tax payments via the Fedwire Funds Service in the US Treasury Tax Payments Format Requirements section of the Fedwire Funds Service ISO 20022 Quick Reference Guide posted on iWeb resource page. The format will also align to the requirements that will be updated in the Electronic Federal Tax Payment System (EFTPS) Handbook.
There is some misuse today in the current FAIM format as customers duplicate the Receiver FI as the Intermediary FI. The Intermediary Agent should only be used to identify a financial institution different from the Instructed Agent and from the Creditor Agent that is truly playing an intermediary role in the payment chain to allow the Instructed Agent to reach the Creditor Agent. For example, you would include an Intermediary Agent for an international payment if there was a third financial institution between the Instructed Agent and the Creditor Agent.
Ultimate Debtor: This should be used to include 'payment on behalf of' information that is currently provided in a free-formatted field. For example, Company A in Seattle is the main treasury hub and makes all payments on behalf of all other branches of Company A’s. Company A in Seattle would be identified as the Debtor when it makes the payment on behalf of Company A's New York branch for its invoice. Company A's New York branch would be identified as the Ultimate Debtor.
Ultimate Creditor: This should be used to include 'for further credit to' information (i.e., when the Creditor is not the ultimate beneficiary) that is currently provided in a free-formatted field. For example, Jane Smith receives a scholarship fund, which will be credited to the account of Jane's father, John Smith, held with the Creditor Agent. John Smith would be identified as the Creditor and Jane Smith would be identified in the Ultimate Creditor.
Hybrid/end-state — Focuses on use of structured postal address information, requiring at least the country code and town name, but also permits use of up to 2 lines of free-formatted address information (70 characters each).
In a future release after the ISO 20022 implementation on July 14, 2025 (timing to be determined), the Fedwire Funds Service will require the hybrid/end-state postal address requirements for all parties and agents at which time you will no longer be able to use only unstructured address lines.
Interim — Supports cross-border interoperability as financial institutions migrate at different times to sending ISO 20022 messages via the SWIFT network. The interim format allows for the use of structured postal address information or unstructured but does not allow the combination of both structured and unstructured.
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