ISO 20022 is a global standardized messaging format for payments. All United States financial institutions are being required by the Federal Reserve to use this format for sending and receiving payments. ISO 20022 provides faster processing and enhanced transparency in payment instructions and details.
The current deadline for this required change is March 10th, 2025. This date is subject to change by the Federal Reserve. However, in order to not delay processing, we are proceeding with a March 10th, 2025 deadline.
With the implementation of ISO 20022, it will be required to list the Beneficiary Bank with its physical address, as well as the Receiving Bank with its physical address. In most cases, Beneficiary Bank and Receiving Bank will be the same institution, but it is important to verify with your vendor. In addition, the purpose of the wire will become a required field.
Previous Terminology |
New Terminology |
Definition |
---|---|---|
Originator | Debtor | Person or entity sending the money. |
Originating Bank | Debtor Agent | The financial institution of the person or entity sending the money. |
Beneficiary | Credit | Person or entity receiving the money. |
Beneficiary Bank | Creditor Agent | The financial institution of the person or entity receiving the money. |
Receiving Bank | Instructed Agent | The financial institution that receives the money before being sent to the beneficiary bank (only applicable in some cases) |