The Federal Reserve Financial Services (FRFS) has formally transitioned the Fedwire® Funds Service to ISO 20022 messaging, replacing the legacy Fedwire Application Interface Manual (FAIM) format, which is no longer supported.

The migration aligns Fedwire with global payment system modernisation efforts. ISO 20022 introduces a standardised, data-rich messaging format supporting end-to-end automation and enhanced data quality in high-value payment processing.

In preparation for the cutover, FRFS released a range of implementation tools and contingency resources, including guidance on validating correspondent banking relationships and configuring manual message processing workflows.

Pratiksha Pathak, Head of Payments Services at RedCompass Labs, said: “The Fedwire migration to ISO 20022 is a welcome and important step forward for the US payments system. It aligns the US with global standards and sets the stage for faster, smarter, and more secure financial messaging.

“But this is just the beginning. With the end of the MT-MX coexistence period approaching in November, banks must ensure they’re ready to process richer, structured MX messages. And by 2026, unstructured addresses will be phased out, requiring a major upgrade to legacy systems and data.

“ISO 20022 is an opportunity to build a more resilient and future-ready payments ecosystem. The institutions that act now will be best placed to lead in the next phase, while those that don’t will be left behind.”

To support operational readiness, FRFS has published a series of educational resources, including on-demand recordings. In parallel, FRFS published a list of vendors that offer products or services designed to facilitate ISO 20022 compliance.