Regulatory Alerts2022-01-01
Upgrade and ISO 20022 Messaging Standard Migration for the Real Time Gross Settlement System
The Bank of Zambia requires all commercial banks to migrate to an upgraded Real Time Gross Settlement system based on the ISO 20022 messaging standard by July 14, 2023. Institutions must configure their core banking systems to process ISO 20022 messages by December 23, 2022, ensure adequate network bandwidth for larger XML files, and fully participate in User Acceptance Testing beginning January 2023. Non-compliance with these directives and cross-border payment deadlines will trigger regulatory action under Section 43 of the National Payment Systems Act.
Bank of Zambia OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
BOZ/EXEC/DGO/psd/bp
September 2, 2022
CB Circular No. : 11/2022
To : All Heads of Commercial Banks and the Zambian SWIFT Community
UPGRADE AND ISO 20022 MESSAGING STANDARD MIGRATION FOR THE REAL TIME GROSS SETTLEMENT SYSTEM
Following several engagements and training held by the Bank, SWIFT, Montran (the Real Time Gross Settlement (RTGS) system vendor) and the commercial banks, we wish to advise that all banks shall be required to migrate to the upgraded RTGS on July 14, 2023. The upgraded system will be based on the ISO 20022 messaging standard and all banks will migrate at the same time, commonly referred to as the ‘Big Bang’ approach. User Acceptance Testing for the upgraded RTGS will commence in January 2023.
In readiness for the upgrade and as per CB Circular Number 03 of 2020, each commercial bank is required to comply with the following:
- The core banking system and related applications shall be configured to process the ISO 20022 message standard by December 23, 2022, in readiness for the User Acceptance Tests (UAT) that will commence in January 2023. The system specifications (HVPS+ Accelerator message schemas and usage guidelines) to guide the upgrade of your core banking system and related applications have been published on the Society for Worldwide Interbank Financial Telecommunication (SWIFT's) MyStandards;
- Fully participate in the UAT that will start in January 2023;
- Ensure sufficient bandwidth on your respective networks to accommodate the larger XML messages; and
- Fully participate in all activities leading up to the UAT and migration to the upgraded system.
Further, for cross border payments, banks are required to comply with the SWIFT deadline of November 2022 for incoming payment messages and November 2025 for full compliance with the ISO 20022 message standard.
The Bank of Zambia has set up a support desk to assist the industry with the ISO 20022 migration journey. The support desk can be reached on telephone number, 0211-399320 and email, zipss.helpdesk@boz.zm.
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Bank Square, Cairo Road, P.O. Box 30080, Lusaka, Zambia Tel:+260-211-399303, 399300, E-mail: dgo@boz.zm. Web: http://www.boz.zm
CB Circular No. 11/2022 - 2 - September 2, 2022
Failure to comply with these directives shall attract regulatory action in line with Section 43 of the National Payment Systems Act.
Should you have any queries, please contact the office of the Director – Payment Systems.
(Signature)
Francis Chipimo (PhD) DEPUTY GOVERNOR – OPERATIONS
cc Director – Payment Systems Director – Bank Supervision Director – Financial Markets Director – Non-Bank Financial Institutions Supervision General Counsel and Bank Secretary Director – Information and Communications Technology Acting Director – Finance
Bank Square, Cairo Road, P.O. Box 30080, Lusaka, Zambia Tel:+260-211-399303, 399300, E-mail: dgo@boz.zm. Web: http://www.boz.zm