ISO 20022 CBPR+ — Empowering Clients with Richer Data and Streamlined Operations
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The ISO 20022 standard for Cross-Border Payments and Reporting (CBPR+) messages is now fully implemented and live on Clearstream’s systems.
Driven by the adoption of the ISO 20022 standard, the global financial services industry is undergoing a significant transformation with the Swift mandate to transition from the legacy message type (MT) to the modern XML message type (MX) format for payment instructions. This shift represents more than a just technical upgrade. It is a move toward a more efficient and transparent future for financial communication.
The move away from MT messages, which are limited in their data capacity, to the XML-based MX format is designed to further standardize financial messaging globally.
With the implementation of the new formats, our clients benefit from the following:
- Enhanced data quality: MX messages can carry significantly more and better-structured data compared to their MT counterparts, allowing for more detailed information about the parties and purpose of a payment.
- Improved operational efficiency: The enhanced data quality facilitates higher rates of straight-through processing (STP), allowing for faster and more accurate payment processing.
- Enhanced transparency and compliance: With more granular data, financial institutions can improve anti-money laundering (AML) and sanctions screening processes, leading to more effective fraud detection.
- Global standardization and interoperability: By adopting ISO 20022, Clearstream promotes seamless communication and interoperability between our and our partners’ payment systems and other financial institutions worldwide.