Global: Bank of England Embraces BIS CPMI ISO 20022 Data Standards for Cross-Border Payments

The Bank of England extends a warm welcome to the Bank for International Settlements (BIS) Committee on Payment and Market Infrastructures (CPMI) for their recent publication of harmonized ISO 20022 data requirements for cross-border payments (“CPMI ISO 20022 data requirements”).

The adoption of the ISO 20022 global payments messaging standard by payment systems worldwide, including CHAPS, which successfully transitioned in June 2023, represents a significant step forward. The Bank firmly believes that the global acceptance of the CPMI ISO 20022 data requirements will mitigate inefficiencies within the cross-border payment process, arising from misaligned message flows and inconsistent data usage. A uniform implementation of the CPMI ISO 20022 data requirements on a global scale is expected to improve cross-border payment messages, notably through increased straight-through processing. These improvements will contribute to the G20’s objectives of achieving cost-efficiency, speed, and transparency in cross-border payments.

Recognizing the benefits of this initiative, the Bank of England intends to align the CHAPS ISO 20022 message usage guidelines with the CPMI ISO 20022 data requirements by the end of 2025, which precedes the global adoption deadline set by the CPMI for the end of 2027, as outlined in their report. The Bank encourages other market infrastructures and payment service providers participating in cross-border payments to also harmonize their ISO 20022 message usage guidelines with the CPMI ISO 20022 data requirements. This collaborative effort will ensure that the full advantages of harmonization are realized for end-users worldwide.