Vous êtes sur la page 1sur 20

ISO 20022 Strategy and Roadmap

July 2012

TABLE OF CONTENTS

EXECUTIVE SUMMARY .............................................................................................................................. 3 1. INTRODUCTION AND BACKGROUND ......................................................................................................... 4


CPA Role and Vision ......................................................................................................................................4 Background ....................................................................................................................................................4 Purpose ..........................................................................................................................................................5 Scope .............................................................................................................................................................5

2.

MARKET DRIVERS FOR CHANGE ................................................................................................................ 6


Remittance Information ..................................................................................................................................6 Interoperability For Cross Border Payments ..................................................................................................7 Efficiencies for Managing One Open Standard ..............................................................................................7

3.

PROPOSED STRATEGY AND ROADMAP TO ISO 20022................................................................................. 8


ISO 20022 Strategy ........................................................................................................................................8 Proposed Roadmap .......................................................................................................................................9 Phase 1 Defining ISO Standard IMPLEMENTATION Guidelines (2013-2015) ...........................................9 Phase 2 Defining Adoption and Co-Existence Strategy (2016-2020) ........................................................ 10 Standards Management and Communication Program (2013 & Beyond).............................................................. 11

4.

FEEDBACK AND NEXT STEPS ................................................................................................................... 13

APPENDIX I WHAT IS ISO 20022? ................................................................................................................. 15 APPENDIX II - BENEFITS OF ISO 20022............................................................................................................. 17 APPENDIX III GLOBAL ADOPTION OF ISO 20022 ............................................................................................ 19
Europe.......................................................................................................................................................... 19 Asia-Pacific and Africa ................................................................................................................................. 19 The Americas ............................................................................................................................................... 19 Global Organizations .................................................................................................................................... 20 Canada......................................................................................................................................................... 20

July 3, 2012

Page | 2

CPA ISO 20022 Strategy and Roadmap Consultation

EXECUTIVE SUMMARY

The Canadian Payments Associations Vision 2020 Payments Strategy provides that the CPA promote the development and alignment of domestic payments standards with existing international standards and that the CPA seek to facilitate global and domestic interoperability for its clearing and settlement systems. On October 6, 2011 the CPA Board of Directors resolved that ISO 20022 (Financial Services Universal Financial Industry Message Scheme) be established as the long term goal for electronic payment standards for clearing and settlement through the CPA, and that the CPA develop a road map and transition strategy, including an impact assessment, to facilitate the acceptance of the ISO 20022 1. This strategy document is the first step in that process. This standards strategy and roadmap document (herein referred to as the Strategy document) outlines the evolution of payment standards supported by the CPA and defines a strategy and the roadmap to adopt ISO 20022 as the CPA messaging standard between its member financial institutions by 2020. The ISO 20022 standard, with its underlying business, data and messaging models, is increasingly being embraced by the global financial community for addressing legacy system complexity while accommodating evolving requirements for remittance information and increasing global interoperability. The ultimate goal of this strategy is the use of a single messaging format by diverse industry and market segments while accommodating the requirements of different payment systems and constituencies. The CPA is releasing this strategy document for consultation to inform members and stakeholders of the proposed strategy and seek feedback on the strategy and roadmap. Based on the feedback received, the strategy and roadmap may be amended with the objective to provide a final document to the CPA Board of Directors for November 2012.

For more information on ISO 20022 please refer to Appendix I.

July 3, 2012

Page | 3

CPA ISO 20022 Strategy and Roadmap Consultation

1. INTRODUCTION AND BACKGROUND


CPA ROLE AND VISION

The Canadian Payments Association operates cost-effective national infrastructure essential to the movement of hundreds of billions of dollars across Canada each day. We lead our member financial institutions, businesses, government and the public in establishing the rules of the payments highway. In a global and digital economy, the CPA provides a strong foundation to support innovation and the evolving needs of all those who depend upon payments. A key objective of the CPA is to promote the development and alignment of domestic payment standards with international standards, and seek to facilitate global and domestic interoperability for its clearing and settlement systems.
BACKGROUND

Currently there are many different standards used to support the exchange of electronic payments among Canadian businesses, governments, financial institutions and solution providers. Most of these standards do not facilitate automated reconciliation or carry a sufficient amount of structured remittance information to support evolving and future payments needs. A lack of standardized remittance data is a key barrier preventing businesses and governments from initiating and receiving payments electronically. There are three standards used for payments that clear and settle through the CPA: Electronic Data Interchange (EDI ANSI x12), Automated Funds Transfer (AFT Standard 005: Standards for the Exchange of Financial Data on AFT Files) and LVTS MT 103 payments (single customer credit transfer) 2. The CPA, through its role as Chair and subject matter expert on the Standards Sub-Committee of the Task Force for the Payment System Review, compared the payments standards currently in use against other standards available and came to the conclusion that establishing the ISO 20022 as a long term objective was a critical initiative for the CPA 3. The ISO 20022 was assessed against a set of three guiding principles: (1) payment agnostic (i.e. the standard can be used for various types of payments); (2) supports remittance data and payment information together in
2 3

For more information on these payments and the standards used to support them please see Appendix II. It is envisioned that ISO 20022 could be leveraged for many different payment or messaging solutions such as Point of Service (POS), Financial Institution File (FIF) and the Automated Clearing Settlement System (ACSS) but the focus of the CPAs strategy is on AFT, EDI and LVTS payment messages.

July 3, 2012

Page | 4

CPA ISO 20022 Strategy and Roadmap Consultation

the same message; and, (3) is aligned and interoperable with international standards. Based on the evaluation that was undertaken, the ISO 20022 was the only standard that met all three principles. In October 2011, the CPA Board of Directors resolved that ISO 20022 be established as the long term goal for electronic payments standards for clearing and settlement though the CPA.
PURPOSE

The objective of this consultation document is to outline the proposed strategy and roadmap for adopting ISO 20022, and to seek feedback from CPA members and stakeholders4. The document has been developed with the assistance of the ISO 20022 Advisory Group 5 , comprised of CPA members and stakeholders, leveraging their expertise in current standards (AFT, MT and EDI), as well as in ISO 20022. In addition to general comments and observations on the proposed strategy and roadmap, there are a number of questions on which the CPA is seeking feedback that can be found under Section 4.0. Following the completion of the consultation period, the CPA, together with the Advisory Group, will further refine the roadmap in preparation of the November CPA Board meeting where it will be presented for approval.
SCOPE

The scope of this document is to define the CPA strategy, in consultation with CPA members and stakeholders, and to present a roadmap for the implementation of ISO 20022 for the three message formats supported by CPA Rules (AFT, EDI and LVTS). The CPA vision is to use a single ISO 20022 message that meets the requirements of the three existing messages formats while addressing the known gaps. The key difference remaining in the use of the standard will be the method of settlement, either same day final (i.e. LVTS) or next day (i.e. ACSS).

CPA Member Primary Contacts, Stakeholder Advisory Council, National Clearings Committee, LVTS Management Committee, Payments Risk Committee, AFT Sub-Committee, EDI Support Group, and LVTS Participant User Group.

Holly Bell-Sparling (TD), Murielle Boucher (PWGSC), Stephen Frank and Brent Mizzen (CLHIA), Diana Gelfand (TD), Leslie Heales (BMO), Mo Jansons (RBC), Daniel Leduc (CCDQ), Michael Knorr (Citibank), Ron Matthews (Imperial Oil), Trish McSweeney (CIBC), Peter Tristani (BMO), Ted Winters (HSBC), Jim Wills, Frank Vandriessche and Anne Suprenant (SWIFT), and Jeff Moran, Mike Hoganson and Charlie Clarke (CPA).

July 3, 2012

Page | 5

CPA ISO 20022 Strategy and Roadmap Consultation

In the longer term, leveraging one standard for different types of payments will create efficiencies for financial institutions and users. It will also decrease the complexity and cost associated with supporting multiple standards over time. Also, the implementation of ISO 20022 is supported through XML, which is a dominant language for programming applications and can be more easily be integrated into back office solutions and accommodate changes.

2. MARKET DRIVERS FOR CHANGE There are three primary drivers that have been highlighted by members and stakeholders through discussions with the CPA that speak to the need for standards to evolve to support more electronic payments: 1) the need for more remittance information in order to support automated reconciliation and straight through processing; 2) the need to support interoperability for cross border payments as Canadas international markets expand and diversify; and, 3) the ability to maintain and manage multiple standards and reduce costs. Each of these is explained in more detail below.
REMITTANCE INFORMATION

The ability to send and receive structured remittance information with the existing payment standards is limited and viewed as an impediment to migrating payments away from paper (i.e. cheques) and generally increasing the use of electronic payments. The exchange of more and/or better structured remittance information with payments offers the potential for straight-through-processing and for the automated reconciliation of incoming payments with outstanding invoices. Providing the ability to exchange remittance information can also provide increased transparency for customers and easier payment tracking, issue resolution and system reconciliation with extended referencing for both customer and financial institutions. As an example of the need, the Government of Canada announced in April 2012 that it would focus on making all payments electronically using direct deposit (AFT credits) with a view to phasing out the use of cheques for Government payments by April 2016. The increased remittance information that will accompany enhanced payment standards will facilitate the Governments electronic payments to its suppliers of goods and services.

July 3, 2012

Page | 6

CPA ISO 20022 Strategy and Roadmap Consultation

INTEROPERABILITY FOR CROSS BORDER PAYMENTS

Standards play an important role in sustainable development and trade facilitation through the promotion of safety, quality and technical compatibility. With the increasing globalization of financial markets and trade, the payment standards relied upon for domestic traffic in Canada are currently not interoperable for cross border transactions. Therefore, financial institutions and their customers are required to develop a workaround solution or adapt to the associated limitations. The move to an international standard will not only align domestic payment systems, it will also broaden the Canadian payments marketplaces interoperability with the rest of the world where ISO 20022 is increasingly adopted. CPA Members will be able to leverage the initial investments in ISO 20022 as it is rolled out across global services and systems, easing access to international markets and customers. At the same time, the use of a future oriented standard based on widely accepted and accessible technology can remove barriers and create a healthy competitive environment. Over the past few years we have begun to see broad geographic adoption of the ISO 20022 standard in the financial community. The approach taken by each country or region is unique to meet the needs of their individual markets. Their implementation strategies vary from a big bang approach where the entire market is required to go live at the same time and on the same date, to gradual coexistence where two message standards are used with a target to migrate to one or coexistence of two message standards with no defined migration date. For more information on global adoption of ISO 20022 refer to Appendix II.
EFFICIENCIES FOR MANAGING ONE OPEN STANDARD

In todays environment, financial institutions and their customers are required to manage three or more standards to support their payment needs. All of the standards carry the requisite information to ensure that the funds can move from one account to another; however, they use different formatting and terminology to describe specific data fields and do not support a sufficient amount of remittance information. Looking to the future, the CPA envisions that one standard could be used for different types of payments and this will in turn create efficiencies for financial institutions and users. It will also decrease the complexity and cost associated with supporting multiple standards over time. In addition, it could provide more flexibility for

July 3, 2012

Page | 7

CPA ISO 20022 Strategy and Roadmap Consultation

customers when dealing with multiple financial institutions as the implementation of the standard would be consistent across the industry, thereby reducing the need for customization. For a detailed list of benefits of ISO 20022 please refer to Appendix III.

3. PROPOSED STRATEGY AND ROADMAP TO ISO 20022


ISO 20022 STRATEGY

The adoption of ISO 20022 in Canada will be a multi-year undertaking with the objective to implement the new ISO payment messages for exchange between member financial institutions by 2020. The timing of the implementation is directly linked into the CPAs Vision 2020 Payment Strategy and also takes into consideration the progress being made in other jurisdictions to adopt ISO 20022. The implementation guidelines for the new payment messages will be introduced to the community by the end of 2015 and it is envisioned that there will be one standard used for different types of payments. The actual implementation and adoption of the new message standards will occur between 2016 and 2020. The specific timing and approach to transition from the current standards to the new standard will be defined as part of the strategy. In support of the various projects and decisions that will need to take place to support the implementation of the Strategy and Roadmap, the CPA will establish an ongoing Advisory Group comprised of CPA members and stakeholders. The group will act as sounding board to discuss and review community feedback, provide guidance on key issues and discuss external factors/developments in the market that may influence the execution of the roadmap or the pace of change.

July 3, 2012

Page | 8

CPA ISO 20022 Strategy and Roadmap Consultation

PROPOSED ROADMAP

The graphic below visualizes the CPAs proposed roadmap to adopt ISO 20022 as the Canadian domestic payment standard. The roadmap is divided into two distinct phases: Phase 1 Defining the ISO Standard Message and Implementation Guidelines, and Phase 2 Defining the Adoption and Coexistence Strategy. More information on each Phase is included below.

PHASE 1 DEFINING ISO STANDARD IMPLEMENTATION GUIDELINES (2013-2015)

The objective of Phase 1 is to gather the necessary requirements to define the contents of the new ISO 20022 payment message(s) 6 and to work with different industry segments to define how they would use the standard to meet their business needs. The deliverable at the end of this phase (by end of 2015) is a single use of the ISO 20022 message standard across the AFT, LVTS and EDI markets. There will be a set of common data components that will be utilized by all three market segments while allowing for the unique requirements of each. The ISO 20022 standard will be accompanied by implementation guidelines to ensure consistent application of the standard by users in different markets.
6

Messages will include credit and debit funds transfers, notifications, statements, returns etc.

July 3, 2012

Page | 9

CPA ISO 20022 Strategy and Roadmap Consultation

A first step in Phase 1 will be to gather the requirements for enhanced remittance information. The CPA will consult with members and payment industry stakeholders from various industry sectors to gather their feedback on their requirements for remittance information travelling with payment items. Based on the feedback from the consultation, the CPA will then consolidate the feedback to segregate the common themes from the more industry specific ones and thus begin the work to define what the standard for remittance information should look like. The next step will be to review the available payment messages under ISO 20022 and confirm which messages will be used in Canada and define those data elements will be included. The final step will be to map existing CPA domestic standards (i.e. AFT, EDI and LVTS) to the new ISO 20022 messages. This step will focus on message content, in particular expanded remittance information and party identifiers, to support a single standard for multiple payment usage. There will also be an educational component to this work to ensure that CPA members and stakeholders understand the ISO 20022 process and the capabilities of the messages, as well as the choices inherent in the data elements. The defining of the requirements and translating those at message level will be done in parallel with this initial education effort. The process will meet the overall Canadian specific messaging and data requirements while at the same time addressing unique requirements that apply in industry segments (e.g. insurance, energy, retail, communications, government, etc.). The CPA will also work with members and stakeholders to develop the framework that define business and operational models that support the new payment formats, along with roles and responsibilities of the different participants. To ensure interoperability and coexistence between the new ISO 20022 message and the current proprietary formats, conversion rules will also be defined. The work to develop the end-to-end implementation approach can only begin once Phase 1 is complete. Throughout this phase the CPA will organize in-depth information and education sessions on the roadmap, the ISO 20022 standard, etc. to prepare the participants for Phase 2.

PHASE 2 DEFINING ADOPTION AND CO-EXISTENCE STRATEGY (2016-2020)

July 3, 2012

Page | 10

CPA ISO 20022 Strategy and Roadmap Consultation

The objective of Phase 2 is to define the approach that will be taken to support adoption of the new payment standards by member financial institutions. The work in Phase 2 can only be defined once the new standards have been defined. However, the expectation is that the following matters will be explored and addressed: Scope The scope will be confirmed to focus on the FI to FI space or possibly include capabilities that extend to corporate clients. Operations Various operational and functional components will be defined including: Coexistence The length of time that should be allocated for co-existence between the new ISO messages and the current message standards will be defined. Translation The approach for translation with respect to central or local translation facilities will be examined and determined. Testing The requirements for an appropriate testing facility to address both technical and business scenario based testing of the message standards will be defined.

Implementation & Development The amount of time required for financial institutions to develop and implement solutions that can support the new standards will be confirmed. In addition, the impact on corporate clients and the ability of ERP solution providers to develop and implement solutions that can support the new standards and any alternatives for delivery of messages will be assessed. Once Phase 1 is nearing completion and the rulebooks and message implementation guidelines have been finalized, work will begin to define the specific approach that will be taken to support adoption and implementation of the new standard by 2020.

STANDARDS MANAGEMENT AND COMMUNICATION PROGRAM (2013 & BEYOND) In support of the ISO 20022 Strategy and Roadmap the CPA will establish a standards management program to ensure that the required resources are available and trained with the necessary expertise and skills to manage this multi-year project end to end. The team will be responsible for performing and facilitating the detailed work to be undertaken in each of the individual project phases. A process will also be put in place to review the strategy and

July 3, 2012

Page | 11

CPA ISO 20022 Strategy and Roadmap Consultation

roadmap and make any necessary adjustments based on changes in the industry or other external factors. As part of the standard program the CPA will assess the availability and capability of different tools/solutions that could assist in the work for defining implementation of and managing changes to the ISO standards (e.g. SWIFTs MyStandards). The CPA will also draft and implement a formal communication strategy and plan to ensure that members, stakeholders and solution providers are kept informed on progress achieved on the roadmap, as well as upcoming milestones or opportunities to contribute to the dialogue. Communication with members and stakeholders throughout the phases will be key to the success of defining and implementing the new standards. As part of the standards management program the CPA will be more active in the area of payment standards domestically (Standards Council of Canada) and on the international stage (ISO). This will involve participation in forums such as Common Global Implementation (CGI), the Remittance Coalition in the United States and other similar forums and industry groups where the CPA can bring value and represent the views of members.

July 3, 2012

Page | 12

CPA ISO 20022 Strategy and Roadmap Consultation

4. FEEDBACK AND NEXT STEPS This section highlights the questions for which the CPA is seeking feedback from members and stakeholders on the draft strategy and roadmap. Responses to the questions and any additional comments should be provided to the CPA in writing via email to consultation@cdnpay.ca. Feedback will be accepted until Friday, August 31 st. Members and Stakeholders (1) Does the strategy document clearly articulate the scope of the work to be undertaken and the proposed approach? Are there any considerations that have been missed that would help to clarify the scope of the strategy? Considering work to be undertaken in Phase 2 of the Roadmap, what implementation strategy would better meet the needs of your organization: Co-existence with an end date or co-existence with undetermined end date? For CPA members, also please comment on what strategy would best meet the needs of your clients. Does your organization currently provide the capability to create and receive messages constructed under ISO 20022? If not, do you have plans to introduce this capability in the future (by when)? For CPA members, do you provide this capability to your clients or do you plan to deliver this to your clients in the near future? What would your organization need to do to support the adoption of ISO 20022 based on the timelines outlined on the roadmap? Are there any additional considerations that have not been noted in this document?

(2)

(3)

(4) (5)

Stakeholders (6) Does the scope of the strategy meet your expectations? In terms of receiving remittance information, are you prepared to make the necessary technical changes required to receive additional remittance information via ISO 20022? Do you think that some consideration should be given to receipt of the remittance information in a format other than the standard?

July 3, 2012

Page | 13

CPA ISO 20022 Strategy and Roadmap Consultation

The roadmap, with its proposed phases and timelines, will be updated based on the feedback from CPA members and stakeholders received through the consultation process. A revised version of the document will be submitted to the CPA Board of Directors in November 2012 for approval. Upon approval of the roadmap, planning will begin for work to be undertaken in 2013, and projects will be executed in accordance with the CPAs Corporate Action Plan (CAP). If you have any question on the document you may contact Mike Hoganson, Director Payment Operations and Client Services at mhoganson@cdnpay.ca or 613-238-4173 ext. 4295.

July 3, 2012

Page | 14

CPA ISO 20022 Strategy and Roadmap Consultation

APPENDIX I WHAT IS ISO 20022? ISO 20022 is a methodology - a recipe for building financial messaging standards. It is a way to capture the foundations of the business: the activities and processes; the actors and roles involved in those activities; and, the business information needed for those activities to take place. ISO 20022 is based on the concept of three separate layers: The business layer covers the business processes and concepts and how they relate to one another. These are organised in business components with business elements. The messaging layer provides logical messages or message models: a description of the information needed for a business activity to take place, organised in message components with message elements that are syntax agnostic. A key feature of ISO 20022 is that these components are reused across all messages from different business areas. Currently more than 260 messages have been defined and many more are being developed for payments, trade, foreign exchange and others. The syntax layer is the physical representation of the logical messages. ISO 20022 uses XML (eXtensible Mark-up Language) as the primary syntax.

The business and message models are stored in a common financial repository: the ISO 20022 business model with data dictionary. The importance of the business model is that it standardizes on semantics and not on message formats or syntax. More and more standards setting bodies align their models with the ISO 20022 business model, further enhancing the global interoperability. ISO 20022 key points: The ISO 20022 Dictionary helps the financial community align and do business by providing concise definitions for common business concepts; The ISO 20022 process is open to anyone in the industry who wants to participate; ISO 20022 uses XML a technical syntax which enjoys great support from software platforms and tools. However, the standard is designed to allow the use of other syntaxes as new requirements emerge; ISO 20022 XML schemas provide a high level of business validation, reducing the risk of sending or receiving incorrect data;

July 3, 2012

Page | 15

CPA ISO 20022 Strategy and Roadmap Consultation

ISO 20022 messages are free for anyone to implement on any network; The ISO 20022 maintenance process allows users to shape the development of the messages on which they rely; The leaders of ISO 20022 work actively with other standards bodies to promote interoperability; ISO 20022 definitions can be used as the basis for your own internal communication needs; and ISO 20022 definitions are created collaboratively by industry experts from around the world, to ensure their completeness and accuracy.

More information can be found on ISO 20022 at http://www.iso20022.org/.

July 3, 2012

Page | 16

CPA ISO 20022 Strategy and Roadmap Consultation

APPENDIX II - BENEFITS OF ISO 20022 ISO 20022 enables the industry to improve the quality of its services, to be cost efficient and to innovate and react in a flexible and timely manner to changing customer requirements. Furthermore, the Canadian community will become interoperable with the rest of the world as ISO 20022 adoption gains traction in the global market place. Improved Quality of Payments The use of ISO 20022 based standards will increase the overall quality of payments: End-to-end standards take into account the requirements of all stakeholders (corporations, vendors, financial institutions and clearing and settlement systems) ensuring end-to-end interoperability; Enhanced payments transparency and streamlined operations as a result of clearly defined message functions, clearly structured avoiding the free format trap and misinterpretations; Scenario-based standards where functionalities that need to be met have been clearly outlined and defined, allowing to cater for various market practices in a flexible, but precise way; A common terminology and structured data set facilitates re-usability and prevents misinterpretation. Data elements are bundled into structured messages. Additional rules will provide guidance on usage and interpretation across the various systems; and, Financial institutions and consumers of payment services will be able to streamline and consolidate operations and internal processes.

Cost Reduction The use of a common standard across the different systems will foster important cost reductions: Reduction in financial institutions architectural complexity as standards across systems and applications are aligned; Changes caused by new business or regulatory requirements no longer trigger a duplication of efforts across different business lines and systems;

July 3, 2012

Page | 17

CPA ISO 20022 Strategy and Roadmap Consultation

Eased implementation with XML as common syntax across different systems that is universally accepted by the software industry with skills, tools and products readily available; Simplification of back office processing through standardized operating rules, data sets and syntax; and, Streamlined processing will increase the time and cost efficiency stimulating the use of electronic payments by (corporate) customers and governments thereby reducing the overall cost to the economy.

Remittance Information The exchange of more and/or better structured remittance information with payments enabling straight-through-processing and increased automated reconciliation of incoming payments with outstanding invoices; Increased transparency and accommodation of complex business scenarios with inclusion of additional customer and financial institution parties; Easier payment tracking, issue resolution and system reconciliation with extended referencing for both customer and bank parties; Easier compliance with increased national and international regulatory requirements thanks to flexible, future oriented standards with commonly used syntax; and, The use of a data dictionary with reusable components means that ISO 20022 data can be reused in many different business contexts which has the benefit of reducing maintenance cost, speeding development and time to market.

Global Interoperability Most payment standards deployed today have been designed for transactions related to a specific market within national or regional boundaries. The data exchanged is very often not compatible between the individual standards. The move to the international ISO 20022 standard will not only mean aligning the domestic payment systems, it will also support interoperability with other regions/countries that adopt ISO 20022.

July 3, 2012

Page | 18

CPA ISO 20022 Strategy and Roadmap Consultation

APPENDIX III GLOBAL ADOPTION OF ISO 20022 This Appendix provides a high level overview of some of the key regions/countries that have adopted or are working towards the adoption of ISO 20022.
EUROPE

Single Euro Payments Area (SEPA) replacing domestic retail credit transfers and direct debits in Euro with harmonized European payments. SEPA covers 32 countries. In the next phase, the scope is broadened to include corporate-to-bank payment initiation and bank-to-corporate reporting. Large value payment systems committed to ISO 20022 include Switzerland and TARGET 2 and EBA. TARGET2 is performing a gap analysis to implement the standard for corresponding banking, wholesale and treasury payments around the time that TARGET2 Securities goes live. The Swiss community will go live with ISO 20022 in 2015 and will decommission all proprietary payment formats by 2018. The standard is being implemented in the TARGET2-Securities system, starting in June 2015.

ASIA-PACIFIC AND AFRICA

The Japanese Zengin system went live in 2011 with provisions for a central conversion system between proprietary formats and ISO 20022. ISO 20022 will be rolled out with a big bang approach across the high value BOJNet system in 2015. The Australian Payments & Clearing Association (APCA) identified ISO 20022 as a solution to meet changing payment system users demands and has just released an ISO 20022 based scheme for low value payments as part of the payment service enhancements to prepare the Australian marketplace for the future. New Zealand, South Africa, India and China are reviewing plans for ISO 20022 implementations.

THE AMERICAS

Colombia and Brazil are reviewing ISO 20022 for their payment infrastructures.

July 3, 2012

Page | 19

CPA ISO 20022 Strategy and Roadmap Consultation

The US Federal Reserve Bank and NACHA have incorporated ISO 20022 into their expanded remittance capabilities as has the new industry reporting standard (Balance and Transaction reporting Standard (BTRS)).

GLOBAL ORGANIZATIONS

There is adoption via the International Payments Framework Association (IPFA) (US, Europe, Canada, Brazil) with new countries (Australia, South Africa) to be added in 2012. In trade, the Trade Services Utility (TSU) and standby LC/guarantee messaging are leveraging ISO 20022. Common Global Implementation (CGI) has developed common global corporate-to-bank and bank-to-corporate implementation guidelines for credit transfers, direct debits and account reporting. Various other communities are in the process of implementing the ISO 20022 standards or have at the minimum communicated their support to the standard from a strategic long-term perspective.

CANADA

ISO 20022 is being used by some financial institutions in cross border non-urgent credit transfers. Canadian Corporate clients are leveraging the new ISO 20022 through the Trade Service Utility and the new standby lead bank guarantee messaging format. A number of Canadian corporate clients are already using Common Global Implementation in the corporate to bank messaging formats. Some financial institutions have developed ISO 20022 XML capabilities in the corporateto-bank space for various reporting messages and have the capability to map CPA Standard 005 to ISO 20022 as part of the IPFA.

July 3, 2012

Page | 20