The message format will change for the Federal Reserve’s Fedwire Funds Service – to ISO 20022 — the agency said Monday, adding the change is being made to increase efficiency and data collection.
Additionally, the Fed said, it is proposing that that the Federal Reserve Banks – which own the Fedwire Funds Service – adopt the new message format on a single day, rather than in three separate phases as previously proposed.
The Fedwire service is a real-time gross settlement system which, the Fed said, “enables businesses and financial institutions to transfer funds quickly and securely.”
According to the agency, the new message format (developed by the International Organization for Standardization [IOS]) will “allow for enhanced efficiency of both domestic and cross-border payments, and a richer set of payment data that may help banks and other entities comply with sanctions and anti-money laundering requirements.”
The comment period will run for 90 days after publication in the Federal Register.