Payments data in the UK is changing
The UK payments industry is moving to ISO 20022, the emerging global standard for payments messaging. This standard creates a common language for payments data across the globe.
Better data in payments promises to deliver significant long-term benefits for the economy. To adapt to the new messaging standard and accompanying data requirements, your organisation might have to make process and technology changes.
Our timelines and approach
The RTGS Renewal Programme has consulted with CHAPS Direct Participants, other central banks and members of the payments industry on its plans for ISO 20022 migration.
Following industry wide consultation and an impact assessment, the Programme is now able to confirm a revised approach to ISO 20022 migration:
- Phase 2 (TS2): The Bank will migrate the CHAPS payments messages to ISO 20022 in 2022; however the implementation date will move from April to June. From June 2022, the Bank will require all CHAPS Direct Participants to send and receive like-for-like ISO 20022 payment messages (pacs.008, pacs.009 (/COV) and pacs.004) using the like-for-like schemas. ISO messaging will be on a like-for-like basis only at this point (enhanced data will not be permitted). Migration to ISO 20022 messaging in 2022 remains critical for ensuring that the Bank is able to introduce the new RTGS2 core ledger and settlement engine, and decommission the existing RTGS system in 2023.
- Phase 2.1 (TS2.1): From February 2023; on the basis that the SWIFT correspondent banking network will migrate to ISO 20022 (with enhanced data enabled) in November 2022, the Bank will require all CHAPS Direct Participants to receive enhanced ISO 20022 payment messages and at a minimum continue to send like-for-like messages, using the enhanced schemas. DPs will be able to send enhanced messages, but will not be mandated to do so. The like-for-like schemas and rules will be forward compatible with the enhanced schemas and the like-for-like schemas will be decommissioned at this point.
- Phase 3 (TS3): The Bank will then introduce the new RTGS2 core ledger and settlement engine in September 2023, around six months later than previously announced. At this point CHAPS Direct Participants must continue to be able to receive enhanced messages, as under Phase 2.1. There will be a further announcement confirming the approach to mandating the population of enhanced data. We do not currently expect to mandate enhanced data before 2024.
We will provide further guidance for CHAPS DPs on these changes alongside technical information week commencing 26 October.
Technical Resources for ISO 20022 CHAPS migration
Start to get your organisation ready for ISO 20022 CHAPS migration and find out more information on the CHAPS messages and MyStandards Readiness Portal by accessing our technical resources.