ISO 20022 and Domestic Wire Transfers

Effective March 10, 2025, all United States financial institutions will be required to use the ISO 20022 format to send domestic wires transfers.

At Bar Harbor Bank & Trust, we are committed to providing you with the best possible service and the resources you need to help you be successful. Below, you will find important information about ISO 20022 and its impact on wire transfers.

What is ISO 20022?

• ISO 20022 is a standardized messaging format for payment instructions designed for the financial services industry.
• The Federal Reserve is requiring all US banks implement ISO 20022 as the standard message format for sending wires.
• ISO 20022 enables improved data sharing, faster processing, enhanced security, and more transparency across financial institutions.

How does the transition to ISO 20022 impact domestic wire transfers?

• When ISO 20022 goes into effect, the words used to describe wire fields will change. A handy guide to the new terminology can be found here.
• The process you use to submit wires will remain the same but will include the ISO 20022 terminology.
• More details about the wire may also be required, such as more detailed beneficiary information. After ISO 20022 goes into effect, if additional information is required for your wire we will request it when you submit your wire instructions.
• The March 2025 update only impacts domestic wire transfers. International wires will not be impacted until November 2025.

What is Bar Harbor Bank & Trust doing to ensure a smooth transition to ISO 20022?

• We are working with our core banking vendor to ensure that all of our systems and processes will be prepared to transition to ISO 20022 when it goes into effect in March.
• If you have a recurring wire transfer template on file with us, we will update it for you to meet ISO 20022 requirements. We may reach out to you if we have any questions about your template.
• To avoid possible delays, we recommend the following:
• If you need to send wires during the week of March 3, 2025, send them early in the week.
• If possible, avoid initiating any wires on March 10, 2025.

Additional Steps You Can Take to Prepare for ISO 20022

• Review your wire templates. If you have a recurring wire transfer template on file with us, we will update it for you so that it meets ISO 20022 requirements.
• Be prepared to provide additional wire details. Going forward, wire transfers may require more specific information, such as detailed beneficiary data. If additional information is required, we will request it when you submit your wire transfer.
• Coordinate with your payment partners. If you frequently send or receive payments from the same businesses or people, inform them about these changes to ensure they also comply with the new standards.
• Test your transfers. We are happy to assist you in testing your transfers to ensure they meet ISO 20022 messaging standards. Please contact your banker directly to discuss testing.
• Visit www.iso20022.org for more information.

ISO 20022 Terminology

Today, multiple terms are used to designate the parties participating in a wire payment. The ISO 20022 standard will introduce new terminology that will be used universally. New terminology is outlined below:

Key Dates

As mentioned above, these are the key dates to be aware of related to this change:

• ISO 20022 requirements go into effect on March 10, 2025.
• To avoid possible delays, we recommend the following:
• If you need to send wires during the week of March 3, 2025, send them early in the week.
• If possible, avoid initiating any wires on March 10, 2025.

Additional Support

Questions? We’re here to help. For assistance, contact your Treasury Sales Officer directly or the Treasury Support team at treasurysupport@barharbor.bank or 207-669-6779.