The Federal Reserve is seeking public feedback on its adoption of the International Organization for Standardization’s 20022 message format for its Fedwire Funds Service, which will replace its current proprietary format. The Fed is seeking comment about a revised plan to implement the new message format on a single day rather than in three separate phases, as originally proposed.
It was previously announced in 2018 that the FedNow Service—which will enable immediate payments and is scheduled to launch in 2023—would use ISO 20022. The change will allow for enhanced efficiency of both domestic and cross-border payments, the Fed said, adding that the change may also help banks and other entities comply with sanctions and anti-money laundering requirements. ISO 20022 is a widely used standard that has already been adopted by a number of foreign wire transfer systems.