After announcing a delay, the Federal Reserve today issued the final timeline and implementation details for the adoption of the International Organization for Standardization’s 20022 message format for the Fedwire Funds Service.
The new message format will be adopted on a single day as proposed last year, rather than in three separate phases. The Fed also confirmed the new timeline for implementation based on review of public comments: March 10, 2025. Adoption originally had been scheduled for November next year. Additional information was provided regarding customer testing and other implementation details.
The Fedwire Funds Service enables businesses and financial institutions to transfer funds. Adopting the new message format will allow for enhanced efficiency of domestic and cross-border payments due to “greater interoperability among global payment systems, and a richer set of payment data that may help banks and other entities comply with sanctions and anti-money laundering requirements,” the Fed said.