Every time a payment is made, data travels alongside the funds. This data explains who is paying, who is receiving the money, what the payment relates to, and how it should be processed. ISO 20022 provides a common, structured format for this information. This means financial systems across the world can interpret it consistently. In simple terms, it acts as a universal language for global finance. This ensures everyone understands the message in exactly the same way.
Messages are being migrated from 'MT' to 'MX' format over a period of time. You may know MT103 payments which were replaced in November last year or MT940 statements that will be phased out by 2028.
What does this mean to you?
For most clients, no action is needed.
If you make CHAPS or International payments, some upcoming changes may affect how you submit payments. You may wish to speak with your accounting or treasury software provider. They can tell you how their updates could impact your processes.
When does it happen and what you'll need to do
| May 2025 | Purpose of Paymenty (PoP) code A code added to CHAPS and SWIFT payments to describe the reason for making the payment. From May 2025, for certain CHAPS payments it's become a mandatory requirement. |
You should now: Ensure you add the correct purpose code when submitting relevant CHAPS payments. |
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Legal Entity Identifier (LEI) This is a new field introduced in May 2025. It's a 20-character alphanumeric code used to identify parties in payments. It's optional for payments but for CHAPS payments between financial institutions it's now a requirement. |
You'll need to: If relevant, include the LEI code with your payment. |
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| Nov 2026 | Structured address A new standard format for beneficiary addresses in international and CHAPS payments. This'll replace the currently unstructured fields and will be replaced by up to 14 specific fields. Some will become mandatory.
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You'll need to: Provide address details in separate fields, such as street, town and postcode.
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| Nov 2027 | Structured remittance data Under ISO20022 there's a defined standard for remittance information within payments. MX messages enable the bulking of invoice data and payments for example invoice or order numbers. Enhanced data and field capabilities means that remittance data is less likely to be truncated. |
You'll need to: Enter invoice numbers and payment references into the required structured fields once the change takes effect. We will provide guidance ahead of time. |
We’re here to help.
We’ll give you advance notice of any changes that affect you, along with clear guidance to support a smooth transition.
Useful information
Where can I go for more information on ISO20022?
Swift - Provides an introduction to the new standards, formatting specifications and online training resources.
ISO20022.org - Site dedicated to ISO 20022 developments, message definitions and additional details such as external code sets, national clearing codes etc.
Bank of England - This section of the Bank of England website is dedicated to the adoption of ISO20022.