BOJ to adopt new standard for improved payment processing | Loop Jamaica

The content originally appeared on: Jamaica News | Loop News

The Bank of Jamaica (BOJ) is taking a lead role in coordinating Jamaica’s migration from the Swift Message Type (MT) standard to the ISO 20022 – ‘Universal Financial Industry Message Scheme’ format by the end of 2025.

ISO 20022 is a multi-part international standard that enables a common global “language” for the development of messages in the payments, cards and related financial services, securities, foreign exchange trading, derivatives and trade services sectors.

Adoption of the ISO 20022 standard should improve payment processing efficiency and promote interoperability among financial institutions, financial market infrastructures and end-users, the BOJ said.

The initiative is part of the bank’s strategic vision to enhance end-to-end efficiency for payments.

The bank’s target is to ensure that the JamClear systems will be updated to facilitate both the ISO 20022 standard and the current SWIFT MT standards by the second quarter of 2023.

This is to allow participants that interface with JamClear to transition at their own pace.

The BOJ will facilitate the coexistence of the ISO 20022 standard with the current SWIFT MT standards until November 2025. Other entities will be required to notify the bank of their intention to adopt the standard and timeline for implementation.

All entities transitioning to the new standard are being asked to advise the bank by April 29.

The standard’s registration process ensures that business models are in compliance with the standard for the exchange of information for financial services.