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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.
In light with the recent strengthening of anti-money laundering regulations, the new ISO20022 format will require a more detailed entry of address components. Additionally, the expansion of fields will allow for more detailed recording of remittance related information, which is expected to potentially contribute to the efficiency of reconciliation processes.
Enriched data can strengthen Fraud and AML detection
Structured information helps identify key data for automated reconciliation
Smoother integration with most ERP or TMS systems with the support of latest CGI-compliant ISO20022 format
Improved level of transparency of transactions due to presentation of structured information
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. Please see below to find the timing of implementation in each service.
This ISO20022 migration for SEPA transactions was implemented in March 2024. Further changes to other payment types are scheduled to take place in March 2025.
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. A new “Transaction Code” column to your Bank Statement has been added in the March 2024 system release. This column contains a set of codes that can be used to improve data analytics or reconciliation.
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.
If you are receiving 3rd party banks statements in E-Moneyger®, please consult with them and advise SMBC if they plan to migrate to ISO20022 statements, as we may need to reset the application depending on how the messages are formatted by each bank.
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. In addition, there are other new fields that may become mandatory depending on the payment types or market infrastructure. For example, in the UK, the Bank of England plans to mandate the entry of legal entity identifier ("LEI") and purpose of payment in certain types of transactions from 2025 in CHAPS payments.
The layout of the E-Moneyger® SEPA Single Credit, bulk, and SEPA Direct Debit transfers pages were updated in March 2024 as follows:
SMBC Group in EMEA plans to implement the structured addresses to all other payment types in E-Moneyger® from March 2025 onwards.
The current industry standards advise that by Nov 2026, the use of the current “Unstructured Address” will be discontinued and to be replaced with full “Structured Address”, or a combined “Unstructured” and “Structured” address format (“Hybrid”).
In March 2025, E-Moneyger® will begin to support the Wire Transfer file upload of ISO20022 pain.001.001.09 format for Swift Transfers. The existing CSV file upload feature will be enhanced to include new ISO fields, such as:
The “Structured Beneficiary Address” fields have been added to SEPA Payee Templates and will also be added to the other payment types in March 2025.
In March 2025, we also plan to provide a new “Payee Template Upload” service by which you can upload Templates with new ISO related fields. It will also be possible to upload revised Templates to replace the current 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 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: