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The major interbank payments systems (CHAPS, Faster Payments, Bacs) are moving to the global messaging standard for payments, known as ‘ISO 20022’. In June 2018, the Bank of England in conjunction with Pay.UK and the Payment System Regulator (PSR) consulted on the adoption of ISO 20022. The coordinated adoption of a single standard across interbank payment systems will bring many benefits for payments providers, and for the businesses and households they serve.
There were over 70 responses to the consultation from a diverse range of stakeholders, The responses were largely supportive of the proposals in the consultation paper. In particular, there was broad consensus to introduce the Common Credit Message (CCM), which aims to harmonise messaging across the UK’s main interbank payment systems. There was wide support for how the CCM will be introduced for CHAPS payments, including when additional data, such as the use of Legal Entity Identifiers (LEI) for transactions between financial institutions, will become mandatory. Certain changes have been made to the proposals, to reflect industry feedback since the consultation was launched; these are explained in our response document and will be reflected as we move to implementation.
To find out more about the results of the consultation, the latest timeline for the migration to ISO 20022, and next steps for implementation, please visit the Bank’s website.