Federal Reserve delays ISO 20022 cutover by two years

The Fed had beforehand set a deadline of November 2003 for a cutover to the prolonged fee message format, according to its implementation by Swift and different international cash switch networks.

The company says that it’s going to as an alternative go for a one-day cutover on 10 March 2025.

The Fed says the revised timeline is in response to financial institution issues that it was prioritising the introduction of the brand new messaging format to the detriment of the roll out of the FedNow real-time switch community, which can also be set to debut in November 2003.

In addition to shifting the deadline, the central financial institution has additionally set out a revised testing technique to alleviate financial institution conerns over a number of workloads and useful resource constraints.

“The board believes that shifting the implementation date for the migration of the Fedwire Funds Service to the ISO 20022 format to March 10, 2025, fairly than focusing on November 2023 as proposed, ought to mitigate commenters’ issues relating to useful resource constraints in gentle of the launch of the FedNow Service,” the Fed board says.