Be ready for the Fedwire Funds Service migration to ISO 20022
Big changes are coming to financial messaging, and preparation is key. On July 14, 2025, the Fedwire Funds Service will officially transition to the ISO 20022 format, replacing the legacy Fedwire Application Interface Manual (FAIM). This update will put the U.S. in line with more than 70 countries that have already adopted the ISO 20022 messaging standard. To help ensure a smooth transition, financial institutions must take steps now to prepare their systems, train their teams and minimize disruptions.
Why ISO 20022 matters
Switching to ISO 20022 isn’t just about keeping up with global standards; it comes with distinct benefits for financial institutions, including:
Better data quality: More structured and detailed data reduces errors and improves transparency.
Increased efficiency: Standardized messaging simplifies payments and reconciliation.
Improved compliance: Granular data makes it easier to meet regulatory requirements like AML and OFAC screening.
Seamless global transactions: Aligning with international standards helps facilitate cross-border payments.
Steps to prepare
All financial institutions must be ready to send and receive ISO 20022 messages starting July 14, 2025. Here’s how to help ensure a successful transition:
Staff training and education
Your team will need to understand the new message formats, including:
- pacs.008 (customer credit transfers)
- pacs.009 (financial institution credit transfers)
The Federal Reserve offers training sessions, quick reference guides and hands-on practice opportunities to help institutions master the updated system. Training is available through June 25, 2025, on the Federal Reserve’s .
System testing and validation
Testing is essential to help ensure a smooth rollout.
Financial institutions should use the to:
- Simulate real transactions with other institutions.
- Verify message formats and template accuracy ahead of the deadline.
Additionally, the readiness portal offers sample messages and test cases to help institutions confirm compliance before the transition.
Contingency planning
Even with proper preparation, unexpected challenges can arise. Financial institutions should develop backup strategies, such as:
- Alternative transaction methods through correspondent banking arrangements.
- Manual wire processing as a fallback option.
Attestation and compliance
To keep operations running smoothly, the Federal Reserve requires institutions to submit attestations verifying their migration readiness via the FedPayments ÂÜÀòÉç¹ÙÍør – Funds application.
Resources for a successful migration
For updates, live drop-in sessions, FAQ, and preparation checklists, visit the .
How Wipfli can help
The transition to FedFunds Service ISO 20022 can feel overwhelming. Wipfli specialists are ready to help. Our team has extensive background and knowledge in financial system upgrades and can guide institutions through the migration with tailored solutions. These include strategic planning, training and operational support, testing and validation assistance, compliance and risk management, and contingency planning and troubleshooting.
With Wipfli in your corner, your institution can transition to ISO 20022 smoothly and confidently, reducing risks and helping to ensure operational stability. Contact our risk advisory services team to discuss how we can help.
Read on for more content on compliance risk and financial institutions:
