The Society for Worldwide Interbank Financial Telecommunication (Swift) has announced a new global standard for financial messaging for all commercial and treasury payments and balance and transaction reporting, known as ISO20022.
The adoption of ISO20022 is planned for local remittances in certain countries and regions and will take effect between March 2023 and November 2025.
SMBC Group will provide its customers with specifications for the new format as part of its ISO20022 migration strategy. The schedule and new format are being determined by the approach taken by payment scheme operators and regulators in each relevant region and country.
The new format will comply with ISO20022 as designated by the International Organisation for Standardisation. Its adoption is being promoted globally and will include more enriched transaction information than the current format. There are an increased number of data fields, and it is necessary to provide more details of sender and beneficiary addresses such as building name, street name, town name, state, and country name. The introduction of new data components will provide more transparency and strengthen operational efficiency. For example, in funds transfer remittances the new format will allow for enhanced transaction information, such as invoice details, to be added which will assist in faster and smoother reconciliation.
The adaptation of the new format in all financial institutions started in March 2023. The old format will be abolished completely and will not be accessible in November 2025. We are preparing our systems to interface with the new format, and we will announce changes to the way domestic and foreign remittances need to be submitted.
Note: Due to an industry level reschedule, the changes originally announced as November 2023 have been postponed to March 2024.
The layout of the current debit and credit advice screen has changed. This is to reflect some of the new fields in preparation for the full ISO20022 format when migration completes in the next few years. You may notice some blank fields that will gradually populate with data as the migration progresses. In addition, you can download your account statements in the new camt.053 format from E-Moneyger®.
The new ISO20022 offers more granular details on transaction types. We plan to add a new “Transaction Code” column to your Bank Statement in the upcoming March 2024 system release.
SMBC can now receive and display your account statements sent by other banks in the ISO20022 camt.053/052 format in our E-Moneyger® online banking platform. The existing MT940/942 format is still accepted.
Both the new and old formats can be used by banks in remittances between March 2023 and November 2025. When inward remittances arrive in the new format, SMBC Group will process such instruction and deposit funds to customer accounts in the same way as today. During the co-existence of the new and old formats, if the sender inputs data that exceeds the word limit of the old format, it will automatically convert to the new one, although some data may be partially truncated.
The new ISO20022 standards require a structured payee address and details of payment entry fields. By November 2025, only the structured address fields will be allowed. In addition, there are other new fields that may become mandatory depending on the payment types or market infrastructure. For example, in the UK, CHAPS plan to mandate the entry of legal entity identifier and purpose of payment in certain types of transactions from 2024.
The layout of the E-Moneyger® SEPA Single Credit, bulk, and SEPA Direct Debit transfers pages will change in March 2024. We will add the expanded 'Structured Beneficiary Address' fields to SEPA credit and bulk transfers, and structured debtor address fields to SEPA Direct Debit pages. While the Structured Address entry is optional, as part of the SEPA Rulebook change, at least one line of Address will become mandatory for the current non-Structured format. SMBC Group in EMEA plans to implement the structured addresses to all other payment types from July 2024 onwards.
In March 2024, we plan to start supporting the file upload in both SEPA Remittances and SEPA Direct Debit modules, where your import file contains the new structured beneficiary and/or debtor address information. The existing formats will continue to be supported.
As of today, the SEPA Direct Debit Rulebook determines that “Debtor Address” (“Debtor Address line + Debtor Country”) must be provided for all collections when either the Creditor Bank or the Debtor Bank is based in a non-EEA country or territory.
After March 2024, per the SEPA Rulebook change, if used, the Address section must either contain as a minimum “Debtor Country + Debtor Address line”, or “Debtor Country + Debtor Town Name”.
Please note that the “Structured” address in SEPA transactions does not allow the combination of “Address line” and any other Structured address fields other than “Country”.
In March 2024, we also plan to add the structured beneficiary address fields to the Payee Templates. It is recommended that you start to review your existing templates and consider the migration from the current beneficiary address entries to the new format. We will be sending out further communication regarding the effective ways to migrate your Payee Templates.
We are now able to deliver customer account statements in the ISO20022 camt.053/052 format.
For further details on E-Moneyger® changes, please refer to:
We recommend that our customers start preparing for ISO20022
Adoption of ISO20022 started in March 2023 and new features will be implemented gradually in stages until November 2025. For inward remittance, the new format has been applicable since March 2023. For outward remittance, the migration timing will vary depending on the country. We will announce further information in a timely manner.
There are no changes to the remittance fees as a result of the ISO20022 migration.
All financial institutions will migrate to the new format as ISO20022 is the common standardised format for Swift network users. The timing of migration may differ between other financial institutions.
E-Moneyger® will start to support the following file upload formats from March 2024 onwards: