June 29, 2022

Fed ISO 20022 final implementation details include NAFCU-sought recommendations

fed The Federal Reserve Board announced Monday the final timeline and implementation details for the adoption of a new Fedwire Funds Service message format, ISO 20022. The final details are similar to the proposal issued last year, including new changes consistent with NAFCU’s recommendations.

The timeline highlights that the Board confirmed that the new message format will be adopted on a single day as proposed last year, rather than in three separate phases. The Board also provided a new timeline for implementation based on review of public comments, with the new message format to be adopted on March 10, 2025. In addition, the Board provided further information regarding customer testing and other implementation details.

Of note, in a letter to the Fed earlier this year, NAFCU recommended the Board adopt a flexible implementation strategy that provides credit unions with ample time to test the ISO 20022 messaging format as early as possible.

The Fed also implemented several other that NAFCU recommendations, including:

  • the revised testing strategy will include 12 months of DIT testing time for users to prepare for the migration of the Fedwire Funds Service to the ISO 20022 message format; and
  • the Reserve Banks will follow a modified version of the proposed backout strategy, under which they will complete all internal and user testing activities at least two weeks prior to the ISO 20022 implementation date and make a “go/no go” decision based on internal and industry readiness.

NAFCU will continue to remain in close contact with the Federal Reserve and continue to provide credit unions with updates on this topic via NAFCU Today.