Media Release Harmonised ISO 20022 Data Requirements to Enhance Cross-border Payments

The Reserve Bank welcomes the publication today of harmonised ISO 20022 data requirements for cross-border payments by the Bank for International Settlements’ Committee on Payment and Market Infrastructures (“CPMI ISO 20022 data requirements”).

The Reserve Bank believes that global adoption of the CPMI ISO 20022 data requirements will help to reduce inefficiencies in the processing of cross-border payments that can arise from varying implementations of the ISO 20022 messaging standard, misaligned message flows and inconsistent data usage. The ISO 20022 messaging standard – a global and open messaging standard for exchanging financial information - is being increasingly adopted by payment systems around the world. Widespread implementation of the CPMI ISO 20022 data requirements is expected to lead to increased straight-through-processing of cross-border payments, helping to make them cheaper, faster and more transparent for end users.

The Reserve Bank, AusPayNet and Australian Payments Plus intend to align their relevant ISO 20022 message usage guidelines with the CPMI ISO 20022 data requirements for cross-border payments prior to the CPMI’s end-2027 timeline for global adoption.

The Reserve Bank chairs the CPMI working group that developed the CPMI ISO 20022 data requirements for end-to-end use in cross-border payment transactions. The Reserve Bank will now work with the CPMI to encourage international market infrastructures and payment service providers participating in cross-border payments to align their ISO 20022 message usage guidelines with the CPMI ISO 20022 data requirements. This work is one example of Australia’s contribution to the G20 programme to enhance cross-border payments.

“The publication of the CPMI ISO 20022 data requirements is a positive and practical step in the G20 programme to enhance cross-border payments. The implementation of these requirements will require a co-ordinated effort by the global payments community over the next few years,” said Michele Bullock, Governor of the Reserve Bank of Australia and former Co-Chair of the CPMI Messaging Workstream.

Background information

A priority action in the G20 roadmap to enhance cross-border payments is to transition to richer, internationally harmonised message formats for payments, based on the ISO 20022 messaging standard, which should help to lower costs and speed up payments over time. The CPMI ISO 20022 data requirements will help to align the implementation and use of ISO 20022 globally to deliver its full benefit.

Cross-border Payments - Financial Stability Board (fsb.org)

G20 Roadmap for Enhancing Cross-border Payments: Priority actions for achieving the G20 targets - Financial Stability Board (fsb.org)

In Australia, AusPayNet manages the high-value clearing system (HVCS) and Australian Payments Plus operates the New Payments Platform (NPP). These payment systems use the ISO 20022 messaging standard. The HVCS currently processes incoming cross-border payments and NPP will introduce this capability from December 2023.