
ISO 20022 payments regulation changes
Read time : 8 mins Added: 12/08/2022
Timelines described below are subject to change by industry bodies. Date last amended: March 2023
Financial Institutions across the globe are preparing to change the way payments are communicated as SWIFT end the use of MT formats. A new messaging standard called ISO 20022 is being adopted that will allow more data to be included. Below we outline what you need to know about the new messaging standards, key dates and what Lloyds Bank is doing to support clients during the transition period.
What is ISO 20022?
ISO 20022 is a suite of global payments messaging standards. These standards are already in use for SEPA payments and are being adopted by a number of other domestic and international clearing systems over the coming years. Likely to have the biggest impact to our clients in the near term will be CHAPS and Target2 with the Faster Payments Service due to follow at a later date.
IS0 20022 is a standards methodology that not just defines the XML-rich structured format standards introduced by SWIFT, but it is a community of practices, translation rules and support for promoting, adopting and using these new standards. The ISO 20022 standards for payments and settlement, exceptions and investigations, and balance and transaction reporting will all be integral to the future of payments.
Key migration timelines
The enhanced and richer structured data in payments messages, exception and investigation messages as well as balance and transaction reporting will result in enhanced automation, interoperability and integration – especially as global clearing systems also migrate to ISO 20022.
For Lloyds Bank and our customers, there are two key sets of dates. In March 2023 the Target2 (High-value Euro) ISO 20022 migration will go live over one weekend; going from MT messages on the Friday, to MX messages on the Monday.
The whole industry will begin the CBPR+ migration from MT to MX at the same time. This is when we have to start receiving those ISO messages. Lloyds Bank will also start sending ISO messages at that time.
The second key date is the revised Bank of England CHAPS migration, which will now be in June 2023. This will mean that for three months, between March 2023 and June 2023 the UK local infrastructure will truncate any enhanced data sent into the UK. A request will be sent by all UK CHAPS participants to their FI clients not to send enhanced data to UK beneficiaries during this period.
Currently the ISO 20022 migration is intended to complete in November 2025. In the interim it is expected that both message standards will be accepted during this co-existence period.

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Benefits
Over time businesses will see a number of benefits from the introduction of ISO 20022:
- Processing speed: Structured data will allow a reduction in manual processing and better automation of payment processes such as AML and sanctions checking. This will allow corporates to transact much more efficiently with their payment counterparties.
- Improved reconciliation: Message standards are extensible which means much more information can be transmitted with a payment. This will allow corporates to vastly improve reconciliation processes by making use of this room for additional data.
- Cost reduction: Greater standardisation will result in the simplification of data that corporates need to hold and send to their counterparties and reduced integration costs.
- Innovation opportunity: As adoption increases, the advantages of ISO 20022 will facilitate greater innovation opportunities for corporates and banks, particularly when combined with other technology advances such as cloud computing and investment from infrastructure providers.
Considerations
While much of the heavy lifting will be undertaken by us (or your Bank), there will be a number of things that corporates will need to consider:
- In moving to structured data, you will need to think about your own migration journey starting with a review of information about payment counterparties and how this will be populated in a structured format.
- Consider how and what you capture when setting up a new payment counterparty in the future. Changes will be made by electronic banking systems to facilitate the entry of structured information by November 2025.
- As ISO 20022 becomes more widely adopted, countries around the world will require more information to be provided with a payment such as Legal Entity Identifier and payment purpose codes.
- Corporates will need to think about how these emerging requirements will be captured and stored.
- Corporates should also engage with their ERP vendors to ask what they are doing to support the migration to ISO 20022.
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Benefits
Over time financial institutions will see a number of benefits from the introduction of ISO 20022:
- Processing speed: Structured data will allow a reduction in manual processing and better automation of payment processing as whole – including AML and sanctions checking.
- Improved reconciliation: Message standards are extensive both in terms of the quality of data and where it is located. This means much more information can be transmitted with a payment and also in all transaction balance and reporting data, allowing for vast improvements in reconciliation processes.
- Cost reduction: Greater standardisation will result in greater levels of straight through processing and interoperability across the global payments landscape.
- Innovation opportunity: As adoption increases, the advantages of ISO 20022 will facilitate greater innovation opportunities for corporates and banks, particularly when combined with other technology advances such as cloud computing and investment from infrastructure providers.
Think about your own migration journey
- Think of your own infrastructure and all the elements impacted, from your client payments initiation journey to your reconciliations processes.
- Look to your own direct clearing access ISO migration schedule.
- Test your ability to build and validate CBPR+ on SWIFT MyStandards. Think of how and when you want to receive new CAMT reporting standards (banks will all need to be flexible to work within the transition period to support each other during the co-existence period).
- Engage with partner banks to understand their migration schedule and share your own.
What is Lloyds Bank’s approach to the migration?
Our journey began in 2016 as we looked to develop our plans to:
- respond to regulatory requirement to migrate to the new standards by the established deadlines;
- support the migration of the GBP and EUR Clearing systems that we are direct members of;
- support the needs of our Corporate and Financial Institutional clients on this journey.
The result was the design and build of Lloyds Bank Gem®. Offered to Corporate and Institutional firms, this is our ISO 20022 and API-enabled cash management and payments platform, as well as our new International Payments Platform. We fully support the SWIFT Transaction Management platform and will be ready to send and receive ISO 20022 MX messages.
We will begin migrating Lloyds Bank Plc outbound flow from March 2023 with Target2 first to move, and CHAPS payments following in line with the revised timeframe in June 2023. For all payments, we will initially be using a translator. We will be able to receive MT or MX until the end of the co-existence period.
To find out more about ISO 20022 speak to your relationship manager.
Lloyds Bank’s approach to the migration
Nick Mellish explains Lloyds Bank’s flexible capability to support clients during the transition.
How Lloyds Bank has prepared for ISO 20022
Nick Mellish gives an overview of how Lloyds Bank has incorporated strong technology as part of our plan for the ISO 20022 migration.
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Below is a summary of the current SWIFT MT formats and their MX ISO 20022 equivalents.
caption
Existing FIN MTs
ISO 20022 equivalent
Existing FIN MTs
MT 101 relay
ISO 20022 equivalent
pain.001.001.09
(Interbank)
Existing FIN MTs
MT 102
MT 102 STP
MT 103 REMIT
ISO 20022 equivalent
pacs.008.001.08
pacs.008.001.08
Existing FIN MTs
MT 103
MT103 /RETN/
ISO 20022 equivalent
pacs.008.001.08
pacs.004.001.09
Existing FIN MTs
MT 103 STP
MT 192
ISO 20022 equivalent
pacs.008.001.08
camt.056.001.08
Existing FIN MTs
MT 196 (Response)
ISO 20022 equivalent
camt.029.001.09
(ONLY as a response to camt.056)
Existing FIN MTs
MT 200
ISO 20022 equivalent
pacs.009.001.08
Existing FIN MTs
MT 201
MT 202
ISO 20022 equivalent
pacs.009.001.08
pacs.009.001.08
Existing FIN MTs
MT 202 (with reimbursement Agents – Fields 53 and 54)
MT 202 COV
ISO 20022 equivalent
pacs.009.001.08 - ADV
pacs.009.001.08 COV
Existing FIN MTs
MT 202 /RETN/
MT 203
MT 204
ISO 20022 equivalent
pacs.004.001.09
pacs.009.001.08
pacs.010.001.03
Existing FIN MTs
MT 205
MT 205 COV
ISO 20022 equivalent
pacs.009.001.08
pacs.009.001.08 COV
Existing FIN MTs
MT 205 /RETN/
MT 210
ISO 20022 equivalent
pacs.004.001.09
camt.057.001.06
Existing FIN MTs
MT 292
MT 296
ISO 20022 equivalent
camt.056.001.08
camt.029.001.09
(ONLY as a response to camt.056)
Existing FIN MTs
MT 900
ISO 20022 equivalent
camt.054.001.08
Existing FIN MTs
MT 910
MT 920
ISO 20022 equivalent
camt.060.001.05
Existing FIN MTs
MT 940
MT 941
MT 942
ISO 20022 equivalent
camt.053.001.08
camt.052.001.08
Existing FIN MTs
MT 950
ISO 20022 equivalent
camt.053.001.08
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Cross-border Payments and Reporting Plus (CBPR+) is a market practice defining how ISO 20022 will be used for cross-border payments and cash reporting on the SWIFT network.
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High-Value Payments Plus (HVPS+) is a market practice originated as part of the ISO 20022 harmonisation initiative. It defines how ISO 20022 should be used for high-value payments market infrastructures such as CHAPS.
Both sets of standards are available on SWIFT MyStandards.
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Important legal information
Lloyds Bank is a trading name of Lloyds Bank plc, Bank of Scotland plc, Lloyds Bank Corporate Markets plc and Lloyds Bank Corporate Markets Wertpapierhandelsbank GmbH.
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