ISO 20022 CBPR+: The Future of Payments Infrastructure

ISO 20022 CBPR+: The Future of Payments Infrastructure

The world is progressing towards a standardized system of payments messaging with the migration to ISO 20022 beginning this November. As we discussed in a recent blog, ISO 20022 is due to significantly benefit financial institutions, but their journey to adoption may prove quite challenging.

To assist, SWIFT is providing its users with a central translation service that will implement cross-border payments guidelines and rules formulated by Cross-Border Payments and Reporting Plus (CBPR+), an expert group overseen by the Payments Market Practices Group (PMPG). Notably, CBPR+ defines how ISO 20022 should be used to execute cross-border payments and the reporting of cash transactions. Here’s what you need to know:

Rollout of CBPR+
The rollout of CBPR+ is split into different phases targeting specific functional areas:

  • Payment Transactions and Confirmation
  • Account Statements and Advice
  • Cash Management
  • Cheques
  • Interest, Fees and Charges

New XML Message Types
In total there are 40+ new Extensible Markup Language (XML) message types being introduced to manage all aspects of cross-border payment flows, such as:

  • acmt: Account Management
  • admi: Administration
  • pacs: Payment Clearing and Settlement
  • pain: Payment Initiation
  • camt: Cash Management

The 40+ XML MXs will standardize different rules currently existing in different countries that pertain to individual payment systems. As part of the first phase, 4 pacs (payment clearing and settlement) and 3 camt (cash management) usage guidelines are now available.

To support the move to CBPR+ compliant ISO 20022 messages, SWIFT and working group members are also defining a set of translation rules from SWIFT MT to CBPR+ ISO 20022, and vice versa. During the three-year coexistence period from November 2022 to November 2025, these translation rules will enable adaptability measures in the SWIFT network, over APIs and at customer premises. The CBPR+ working group will also continue to define further usage guidelines, ensuring more interoperability with domestic High Value Payment Systems (HVPS).

CBPR+ introduces a fundamental change to validations, process flows, confirmations, reporting, and, essentially, to the everyday business of processing both incoming and outgoing international payments. Have you switched to ISO 20022 CBPR+ yet?

Learn how IVP is assisting firms with their migration by visiting Cash Management Solution or contacting us at sales@ivp.in.

Talk to an IVP Expert

Schedule a call with an IVP expert. Our knowledge doesn’t just skim the surface, it runs deep, enabling us to help you leverage technology to the fullest for even the most specialized investment strategies.

OR