Payments

10 lessons banks have learned from the ISO 20022 migration

Via Trade Treasury Payments by Deepesh Patel

The shift to ISO 20022 marks one of the most significant changes in global financial infrastructure in decades. ISO 20022 is a universal messaging standard that uses structured, machine-readable XML data to describe financial transactions. It replaces SWIFT’s legacy MT (Message Type) format, which has been in use for more than 40 years and relies on unstructured text fields with limited capacity for automation and analytics.

SWIFT introduced ISO 20022 for cross-border payments and reporting (CBPR+) on 20 March 2023, launching a three-year coexistence period in which both MT and ISO 20022 (MX) messages could be exchanged. This period ends on 22 November 2025, when SWIFT will retire MT messages in Categories 1, 2, and 9 in bank-to-bank communication. After that date, all cross-border payments, bank-to-bank transfers, and cash-management messages must be sent and received in ISO 20022 format.

These categories include common flows such as MT103 (customer credit transfer) and MT202 (bank transfer), which are being replaced by pacs.008 and pacs.009, as well as MT940 statements, now superseded by camt.053.

For banks, corporates, and treasurers, the migration enables richer, more consistent data for reconciliation, sanctions screening, and analytics. For the wider trade, treasury, and payments (TTP) ecosystem, ISO 20022 creates opportunities to enhance supply-chain visibility, improve straight-through processing, and align cross-border and domestic systems under a single standard.

BAFT’s ISO 20022 Migration Lessons Learned paper, drawing on insights from leading global banks, outlines key takeaways from this transformation. The following ten lessons summarise what has worked, where challenges remain, and how institutions can prepare for the final phase.

Read full article here.

BAFT Launches White Paper on G20 Roadmap to Strengthen Global Economic Resilience and Payments Modernization 

WASHINGTON, D.C. (September 23, 2025) – BAFT, the leading global financial services association for international transaction banking, has released a groundbreaking white paper titled “The BAFT G20 Global Roadmap: Accelerating Economic Stability for a Resilient Future.”  Developed by the BAFT G20 Principles in Payments Working Group, the paper demystifies the structure, purpose, and measurable goals of the G20, while outlining its critical influence on global financial stability, sustainable growth, and the transformation of cross-border payments. 

As economic interconnectedness and digital innovation reshape the global financial system, the white paper provides clarity on the G20’s evolving priorities—from fostering macroeconomic coordination and climate resilience to driving real-world progress in payments cost reduction, speed, transparency, and accessibility. 

“This white paper is the first in a series that underscores BAFT’s commitment to advancing financial system modernization in line with global public policy goals,” said Deepa Sinha, SVP of Payments & Financial Crimes of BAFT. “By unpacking the G20 principles and cross-border payments roadmap, we aim to empower financial institutions, regulators, and payment providers to collaborate more effectively in building a resilient, inclusive, and interoperable global payments ecosystem.”

Key highlights of the white paper include: 

  • A comprehensive overview of the G20’s history, structure, and principles in areas such as digital transformation, sustainable development, financial consumer protection, and anti-corruption. 
  • An in-depth look at the 2020 G20 Roadmap for Enhancing Cross-Border Payments, including the roles of the Financial Stability Board (FSB) and the Committee on Payments and Market Infrastructures (CPMI). 
  • Progress and ongoing challenges in meeting the G20’s four key metrics—cost, speed, access, and transparency. 
  • Practical implications for both public and private sector actors, including banks, non-bank payment providers, market infrastructures, and regulatory authorities. 

The paper also aligns BAFT’s advocacy and education efforts with the G20’s global objectives, highlighting the importance of harmonized standards, regulatory consistency, and public-private partnership in delivering meaningful outcomes for economies and end users alike. 

BAFT invites stakeholders across the payments and trade finance communities to engage with this timely white paper, and to participate in the ongoing dialogue as the series continues with deeper dives into each of the G20 cross-border goals.

To access the full white paper, visit www.baft.org 

About BAFT 
BAFT is the leading global industry association for international transaction banking. Bringing together financial institutions, service providers, and the regulatory community, BAFT provides thought leadership, advocacy, education, and a platform for collaboration to promote sound financial practices that foster innovation, efficiency, and commercial growth. The association engages in a broad range of issues affecting transaction banking, including trade finance, payments, and compliance, helping members navigate a rapidly evolving global landscape. For more information about BAFT, visit baft.org, or follow BAFT on X (Formally Twitter), LinkedIn, and YouTube. 

BAFT Response to ECB Consultation to Extend T2 Operating Hours

BAFT supports extending T2 operating hours in a measured, opt-in, and phased manner to enhance liquidity management, support instant and cross-border payments, and keep traditional payment rails competitive with new technologies. However, it emphasizes that full 24/7/365 operations would impose major costs, risks, and system changes, and should only proceed with clear demand, industry alignment, and long notice periods. BAFT urges careful consideration of operational resilience, liquidity sourcing, cybersecurity, and coordination with T2S, recommending feasibility studies, staggered implementation, and safeguards like circuit breakers and central liquidity bridges.

READ MORE HERE >

BAFT Comment Letter to FRS/FDIC/OCC RFI on Payments Fraud

BAFT submitted a comment letter to urge regulators to expand collaboration across banks, fintechs, telecom, social media, and law enforcement — both domestically and internationally — to effectively combat payments fraud. The association calls for real-time data sharing, clearer liability standards, and safe harbor protections so banks can pause suspicious transactions without fear of penalty. It also recommends updated regulations, industry-wide fraud standards, and consumer/business education campaigns to strengthen prevention, detection, and mitigation efforts.

READ MORE HERE >

BAFT Releases Third White Paper in ISO 20022 Series Focused on Lessons Learned in Sanctions and Compliance

Washington, D.C. – BAFT, the leading global industry association for international transaction banking, has published a new white paper titled “ISO 20022 Migrations: Lessons Learned in Sanctions & Compliance.” This latest publication is part of BAFT’s ongoing efforts to support the financial industry in navigating the complex landscape of global payment modernization and regulatory compliance.

The white paper captures practical insights from early adopters of ISO 20022, specifically focusing on the challenges and strategies related to sanctions screening and financial crime compliance. As financial institutions transition to richer data formats and structured messaging, the paper highlights both the operational and regulatory implications, and provides actionable recommendations for compliance professionals and technology teams.

“ISO 20022 has introduced new dimensions to data quality, transparency, and risk management,” said Deepa Sinha, senior vice president of payments & financial crimes, BAFT. “This white paper addresses a critical area—how the migration impacts sanctions and compliance operations—and offers lessons that can benefit banks still undergoing or preparing for the transition.”

Key themes explored in the white paper include data truncation and translation issues, evolving regulatory expectations, technology enablement, and the need for cross-functional collaboration between compliance, operations, and IT. The white paper is available to BAFT members and the broader industry community on the BAFT website.

Click here to read BAFT’s ISO 20022 Migrations: Best Practices & Guidance. The white paper is also available within BAFT’s Library of Documents under the Guidance and Industry Practices section.

About BAFT

BAFT, the leading global financial services association for international transaction banking, helps bridge solutions across financial institutions, service providers and the regulatory community that promote sound financial practices enabling innovation, efficiency, and commercial growth. BAFT engages on a wide range of topics affecting transaction banking, including trade finance, payments, and compliance.

BAFT Media Contact:
Blair Bernstein
Senior Director, Public Relations
[email protected]
+1 (202) 663-5468

Follow Us: @BAFT

BAFT Elects ING’s Nick Smit to Lead Board of Directors

WASHINGTON — BAFT, the leading global financial services association for international transaction banking, has announced that Nick Smit of ING will serve as the chair of its board of directors for the 2025-2026 association year. Smit is the global lead of financial institutions banks at ING.

Based in New York, Smit heads a team of relationship managers covering U.S., Canada, Latin America and global banks, and their in-house asset managers. His specific areas of sales expertise are financial markets, global transaction banking, sector-based finance, and debt capital markets.

“I really appreciate this vote of confidence by the BAFT community,” said Smit. “BAFT has grown into the leading global forum for not only trade, but payments and cash management, and working capital solutions, too. I am very much looking forward to continuing the good work done in the past as we operate and grow further as an independent organization in the future. I value the thought leadership that BAFT brings and also the wonderful networking opportunities it creates.”

Smit has held several roles throughout his 30-year career with ING including lead positions in New York, Amsterdam, Brussels and Geneva. He has served on the BAFT board since 2022. Additionally, Smit has served on the Board of Friends of the University of Stellenbosch in the USA since 2000. Smit received postgraduate degrees in law and economics from University of Stellenbosch (South Africa), as well as a master’s in economics from Cambridge University.

Also re-elected to serve on the BAFT board as officers were:

  • Vice Chair: Michelle Knowles, ABSA
  • Secretary / Treasurer: Miriam Ratkovicova, Deloitte

Other directors include:

Suresh Subramanian, BNP Paribas

Tod Burwell, BAFT         

Ashutosh Kumar, Mizuho

Julie Patterson, National Bank of Australia

Jean François Mazure, Société Générale

Dean Sposito, Deutsche Bank

Ricardo Velázquez, Banco Mercantile del Norte SA (Banorte)

Andy Arduini, Huntington Bank

Oscar Sanz-Paris, CQUR

Ayaz Kamlani, First Abu Dhabi Bank (FAB)

Derryn Faure, Investec

John Kinyangi, Standard Bank   

Patrick Devilbiss, CGI

Dyanne Carenza, Scotiabank

Paolo Muzzarelli, UBS

Rob Hostler, Citi

Brian Gordon, Commerce Bank

Mike Katergaris, JPMorgan

Maurice Iskandar, Banque Libano Française

Patrik Havander, Visa

Amy Sahm, Fulton Bank

George Lee, Standard Chartered

About BAFT

BAFT, the leading global financial services association for international transaction banking, helps bridge solutions across financial institutions, service providers and the regulatory community that promote sound financial practices enabling innovation, efficiency, and commercial growth. BAFT engages on a wide range of topics affecting transaction banking, including trade finance, payments, and compliance.

BAFT Media Contact:
Blair Bernstein
Senior Director, Public Relations
[email protected]
+1 (202) 663-5468

Follow Us: @BAFT