ISO 20022 Migration

1. Familiarize yourself with Swift's plans, including FINPlus requirements, In-Flow Translation, and the Transaction Manager (TM) Platform, to ensure you're ready to receive and process incoming Swift messages starting in March 2023. Please refer to the latest information available at the Swift Knowledge Centre, including Operations Guide, Service Description, Business Processing Rules and FAQ documents.
2. Understand the plans of your payment service providers like J.P. Morgan to align your plans accordingly.
3. Have an implementation plan for transitioning to ISO MX messages and consider all potential operational and technology impacts.
4. Develop a plan to add structured address data for your clients where they are debtor party, and work with your clients to start collecting and organising beneficiary details in structured format.
5. Be aware of appropriate market developments and recommendations during the implementation phase, including those referenced previously in relation to industry truncation risks.

• Clients can choose to send us MT or MX messages during the co-existence period established by Swift (March 2023 – Nov. 2025)
• Clients must be ready to receive incoming Payments Clearing and Settlement messages (pacs.008 and pacs.009 (Core, COV and ADV)) via Swift FINPlus starting March 2023, even if you plan to continue to use MT messages for your core payment processing
• From March 2023, where not restricted by a non-ISO 20022 Market Instructure, J.P. Morgan intends to send MX (pacs) messages to clients and counterparties, including for serial third party (pacs.008/009) credit advice messages, even where we receive the incoming message in a legacy/MT format. MX (pacs) messages provide for enhanced data transparency and formatting, and we are committed to deriving these benefits at the earliest opportunity.
• As an exception, we will continue to provide the forced MT103/202 service to clients that use that service today in lieu of MT910 – see below for more information. If you are not subscribed for this service, you will receive pacs.008/009 for serial third party credit advice messages, as described above.
• Connection to the Swift FINPlus platform will enable Swift's In-Flow Translation service, which will allow you to receive the MX message with embedded MT message, if you are not ready to receive native MX payment messages.
• Please check with your compliance team to understand your obligations related to enhanced data received within the MX messages
• If you have any questions on the above, please contact your J.P. Morgan representative.

MT9xx will remain the default reporting option sent by J.P. Morgan starting March 2023:

• J.P. Morgan will continue to send MT9xx as the default option (note: as stated above, this does not apply for serial third party credit advices where we will send pacs.008/009).
• Clients can opt in to receive Cash Management messages (camt .052, .053 and .054); it is important to note that these messages will include information relating to transactions received via MX or MT messages.
• Availability for this option will initially be limited to a small number of clients to participate in a pilot launch in Q1 2023.
• There will be a broader launch for other early adopter clients from Q2 2023.
• We have a camt.054 schema on our Swift MyStandards page, clarifying the key formatting features, particularly for elements that are subject to interpretation.

If you are interested in receiving camt messages, please contact your J.P. Morgan representative for more information about this option.

Providing enhanced information within MT9xx messages during the Mar. 2023 – Nov. 2025 co-existence period:

• Given that the adoption of camt. messages is expected to take place gradually post-March 2023, where possible we are adapting our MT9xx messages for credits, to append useful information from MX payment transactions, leveraging CBPR+  guidelines (access to Swift resources only for registered users):
• Providing pacs End2End ID Transaction reference as the "Related Reference" (e.g., MT910 field 21, MT940 Field 61 subfield 7) for credit transactions within the MT9xx series messages where provided (excluding business scenarios where we already customize this reference for clients).
• Mapping enhanced ISO data fields from the MX messages into the MT9xx series messages where there is enough space to do so (MT910 field 72, MT940 field 86) while avoiding impact to existing reference and data mapping features.
• Including "+" at the end of fields where possible, in case data cannot be included in the message due to insufficient space; this may apply to Related Reference, Party and Agent details and Sender to Receiver / Detailed Transaction Information fields within the MT9xx series messages.
• These additional features will be available for most EMEA account locations from Q1 / Q2 2023, with other account locations expected to introduce these enhancements later in 2023.
• Clients using the forced MT103 service (including forced MT202 where that is provided) in lieu of receiving MT910, can migrate to camt.054. We recognise this will require time to implement, therefore we plan to retain this service (using MT message) until the end of the co-existence period. To help clients receive helpful information during the interim period, where possible we will attempt to map enhanced data from inbound pacs messages into these messages, leveraging CBPR+ prioritisation and including "+" when data cannot be included due to insufficient space.
• For returned payments, we are planning to provide return reason information as well as the most relevant reference information to clients (i.e., their original debit or credit references) to aid reconciliation and onward processing. This applies to:
• Incoming pacs.004 type of returns
• MT return instructions – clients will observe a change in statements and advices generated for their return instructions after this feature is turned on

J.P. Morgan will continue to accept Swift MT210 messages in account locations where those messages are accepted today. From March 2023, J.P. Morgan will also accept camt.057 messages instead of MT210 messages in those account locations; however, note only single camt.057 messages will be accepted and not multiple advices within the same message.

For returned payments, where possible, we are planning to provide return reason information as well as the most relevant reference information to clients (i.e., their original debit or credit references) to aid reconciliation and onward processing.

Information on our camt. 052/3/4 message formatting is provided within our camt. (054) schema, on our Swift MyStandards page.

Information on how the above will be accommodated within our MT9xx messages is shown below. This will be implemented for most EMEA account locations post the CBPR+ implementation, to enhance clients’ reconciliation processes.

Updates available for EMEA accounts MT9xx reporting:

• Where possible, J.P. Morgan will identify a return transaction, either through receipt of a pacs.004 or through receipt of an MT103/202 with /RETN/ code at the start of field 72.
• For both inbound (credit) and outbound (debit) transactions identified as returns, the following information will be included in the Sender to Receiver / Information for Account Owner fields, where available:
• /RTN/ key word
• End2EndID of Payment being returned (if not available, a space will be added)
• Return Code and Code Name (where provided)
• Returned Amount (e.g., “USD100,1” or “EUR100”,)
• Originator Details
• Original Instruction ID
• Details will be delimited by a “/” and if any details are not available e.g., End2EndID or Originator Details this will be indicated by a “ “ (space).
• J.P. Morgan will also attempt to provide the most relevant reference in field 21 of the MT900/910 and subfield 7 of the MT940:
• For inbound (credit) return entries – we will aim to provide a client’s original Instruction ID (MX) or original Tag 20 (MT) reference from the original payment being returned
• For outbound (debit) return entries – we will aim to provide the Original Instruction ID provided by the client (if return message is sent as pacs.004) or a client’s Tag 20 (if return message is sent as MT).
  
  E.g.:
  
  72:/RTN/ /MS01 /USD999,/ / P333333333333 (sender’s Tag 20 Reference or equiv.)

72:/RTN/ /BE02 /TEXT/BENEFICIARY CODE

UNKNOWN/GBP8888,/ / 000001645022 (client’s original debit Tag 20 Reference or equiv.)
  
  
• We will confirm at a later stage when the above will be introduced for other account locations (expected to be within 2023). Where possible, we are also planning to enhance transparency of return payments within clients' billing invoices, where this doesn’t occur today (the date for this is planned for 2023 and will be confirmed).

J.P. Morgan will be sending pacs.004 for returning settled payments starting March 2023. Clients wishing to receive these messages in MT format can do so by using the Swift in-flow translation service.

Clients can utilise pacs.004 message to initiate return messages via J.P. Morgan although it is also acceptable to continue to use MT with /RETN/ codewords, or even initiate the return as a new payment.

Please reference the ISO codes for returns messages, as per industry guidelines.

From March 2023, for CBPR+ transaction legs, J.P. Morgan will initially issue recalls and rejections and respond to incoming requests (including incoming camt.056 FI to FI Cancellation message) using existing MT message types and practices. We will start sending the camt.056 and camt 0.29 (Resolution of Enquiry) messages as industry adoption increases.

Similarly, J.P. Morgan will continue to use the MT199 in most instances to reject payment requests for CBPR+ transaction legs and will start sending the pacs.002 negative Customer Status Report as industry adoption increases.

We do not plan to send (or receive) any optional pacs.002 positive or pending status reports from March 2023 or in the future.

Please refer to the published market practice guidelines on use of enhanced ISO data elements. This guidance is expected to limit the use of enhanced ISO data elements until post November 2023.

We're making every effort to ensure the services driven by bilaterally agreed codewords for data patterns continue to work seamlessly for clients moving to the new MX messages. If this applies to you and you would like more information, please refer to our Frequently Asked Questions. For additional information on formatting bilaterally agreed codewords within the pacs.008 and 009 schemas, please refer to J.P. Morgan's Swift MyStandards schemas on Swift‍.‍com. If you require further clarification or need access to J.P. MyStandard, please contact your J.P. Morgan representative.

Please note the following details regarding the transition of existing RMAs to MX messages:

• RMAs allow the exchange of Swift messages over the Swift network
• To smooth the transition between FIN and FIN+, Swift "bootstrapped" (copy/paste) all participants FIN RMAs into their equivalent ISO RMAs as of July 30, 2022. Bootstrapping occurred for 9 of the message types in scope for March, including MT103 and MT202.
• The current MT9 category of Swift FIN message types does not require an RMA, but the equivalent ISO camt message types does require an RMA. To lessen the operational impact, Swift provided an optional bootstrap event for the camt.052/053/054 messages types on July 30, 2022. There are 2 further opportunities before 2025 to opt-in to the camt.052/053/054 bootstrap.
• Up to March 2023, the key tasks are (1) to tidy-up any extraneous bootstrapped records, and (2) distribute the FIN+ RMAs into your local RMA and InterAct applications to enable RMA checking.

We know some clients are eager to test ISO 20022 messages. To help prepare for March 2023, clients can reference the following:

• Swift MyStandards schemas and the CBPR+ sample message library on Swift.com
• J.P. Morgan's Swift MyStandards schemas on Swift.com (currently available for pacs.008, pacs.009, and camt.054) which identifies how to populate bilaterally agreed codewords and indicator within the new industry message schemas. To access J.P. Morgan's schemas on Swift MyStandards, you will need to request access to this user group on Swift.com.
• Swift Sparring Partner tool, which may reduce the need for bilateral testing between Swift members. For more information on this tool, please contact your Swift representative.
• Bi-lateral testing with J.P. Morgan in a client-testing UAT environment may be an option from the go-live date in March 2023; timelines and options remain under consideration.

At this stage, J.P. Morgan has no timeline for adopting the CBPR+ pain.001 v9 bank to bank relay message on a send basis and will continue to send relay messages in the existing MT format. We are also not expecting to receive these messages before mid-2023 and any usage of the CBPR+ pain.001 v9 message would need to be agreed bilaterally.

• CLS USD Nostro Services
• From March 2023, CLS USD Nostro Service clients can continue to use MT202 messages with current formatting to instruct their CLS USD Nostro Pay-ins.
• Alternatively, J.P. Morgan will be able to accept CLS USD Nostro Pay-ins via pacs.009 (using the CLSTIME element - <SttlmTmReq> <CLSTm>) or Instructions for Next Agent containing the CLS codeword and time.
• Should you wish to use pacs.009, please contact your J.P. Morgan representative so we can coordinate plans accordingly.
• Impacts to other payment and reporting message types are covered within the general What to Know sections above.
  
  
• CLS Third Party Service
• From March 2023, drawdowns used for the CLS Third Party Service will continue to be sent in MT format until further notice.
• Impacts to other payment and reporting message types are covered within the general What to Know sections above.
  
  
• CLSNow
• From March 2023, clients can continue to use MT202 messages with current formatting to instruct CLSNow Pay-ins.
• Alternatively, J.P. Morgan will be able to accept payments via pacs.009; please use existing codewords in Instructions for Next Agent.
• Should you wish to use pacs.009, please contact your J.P. Morgan representative so we can coordinate plans accordingly.
• Impacts to other payment and reporting message types are covered within the general What to Know sections above.
  
  
• CLSCCP
• From March 2023, clients can continue to use MT202 messages with current formatting to instruct CLSCCP Pay-ins.
• Alternatively, J.P. Morgan will be able to accept payments via pacs.009; please use existing codewords in Instructions for Next Agent.
• Should you wish to use pacs.009, please contact your J.P. Morgan representative so we can coordinate plans accordingly.
• Impacts to other payment and reporting message types are covered within the general What to Know sections above.
  
  

• J.P. Morgan will liaise with each clearinghouse to discuss individual clearinghouse migration plans.
• Impacts to other payment and reporting message types are covered within the general What to Know sections above.

• J.P. Morgan will liaise directly with SwapAgent to discuss migration plans.
• Impacts to other payment and reporting message types are covered within the general What to Know sections above.

Adoption of the ISO 20022 standard for high value and cross border payment initiation is optional at this time and clients can continue using existing methods. However, we are prepared to support you if you decide to adopt ISO 20002 pain.001 via a Host-to-Host connection or SwiftNet FileAct.

• Clients connecting to J.P. Morgan via Host-to-Host can consider adopting the pain.001 v9 standard (which will enable clients to pass end to end enhanced elements such as Ultimate parties and Structured Remittance), and adhering to J.P. Morgan's formatting guidelines
• Please note that J.P. Morgan plans to align with the published industry guidance and not enable enhanced data elements before the Target Date (November 2023). If you connect via Access^®: some ISO 20022 data fields relating to structured address may be made available during 2023 with full enhanced data available post the Target Date (November 2023).
• Corporate CUG clients (Swift Standardised Corporate Environment -- SCORE) that connect to us via Swift: be aware that changes to MT101 messages are not in scope for March 2023; plans to migrate these messages to the ISO-20022 equivalent format have yet to be finalised by the industry

To learn more about ISO 20022 payment initiation options, including account locations where this is available, please contact your J.P. Morgan representative.

As a new industry message type will be available for returned payments, where possible, we will be enhancing transparency of return payments within clients' billing invoices, where this doesn’t occur today.