Regulatory Alerts2021-12-17
Action Plan on ISO 20022 Application in the Central Bank of Azerbaijan's National Payment System Infrastructure
The Central Bank of the Republic of Azerbaijan issued an action plan mandating the adoption of ISO 20022 data formats across its National Payment System infrastructure. The plan requires the Bank's departments to develop compliant formats, upgrade core systems, and establish mutual conversion functionalities while participants integrate these standards into their internal information and e-banking systems. Implementation spans from January 2021 to March 2023, encompassing structured testing phases, pilot operations via SWIFT for international markets, and the final real-time transition of all ISO 20022-compliant transactions.
1 Approved at Order #108s of First Deputy Governor of the Central Bank of the Republic of Azerbaijan dated 15 December 2021 Actions Plan on application of ISO20022 in the National Payment System (NPS) infrastructure of the Central Bank of the Republic of Azerbaijan № Action Executor Implementation period 1 Works on creation of ISO20022 compatible data formats 1.1 Develop ISO20022-compliant data format to be applied in the NPS infrastructure Central Bank PSSD1 01.01.2021-30.04.2021 1.2 Deliver ISO20022-compliant data formats to participants Central Bank PSSD 07.05.2021 1.3 Adjust the normative base on regulation of NPS infrastructure components to use of ISO20022-compliant data formats Central Bank PSSD, LD2 01.03.2022-30.09.2022 2 Works on creation of capabilities on use of ISO20022 in the NPS infrastructure 2.1 Develop new versions of the cores of NPS infrastructure components that support ISO20022-compliant data formats Central Bank 07.05.2021-31.01.2022
1 Payment Systems and Settlements Department of the Central Bank 2 Legal Department of the Central Bank
2 2.2 Create functionalities for mutual conversion of ISO15022-compliant data formats and ISO20022-compliant formats currently used in all exchange methods used to integrate internal information systems of participating organizations with the NPS infrastructure components Central Bank PSSD 07.05.2021-31.01.2022 2.3 Provide participating organizations with workplaces with mutual conversion capabilities Central Bank PSSD 20.12.2021-28.02.2022 3 Works on creation of capabilities on use of ISO20022 in internal information systems of NPS infrastructure participants 3.1 Create functional capabilities for participants to work with new data formats in the ISO20022 standard in internal information systems NPS infrastructure participants 07.05.2021-30.09.2022 3.2 Create functionalities for participants to use new ISO20022-compliant data formats in e-banking services in internal information systems NPS infrastructure participants 07.05.2021-30.12.2022 3.3 Training by participants on the use of new data formats in ISO20022 standard in e-banking services for corporate clients NPS infrastructure participants 07.05.2021-31.03.2023 4 Organization of tests on the use of ISO20022 standard in test environments in NPS infrastructure 4.1 Create test environments for systems based on new versions of NPS infrastructure components supporting ISO20022 and make them available to participants Central Bank PSSD 01.07.2021-28.02.2022 4.2 Carry out tests on processing of new data formats in ISO20022 with participants in relevant test environments on components of NPS infrastructure Central Bank PSSD, NPS infrastructure participants 20.12.2021-30.12.2022 4.3 Carry out pilot works on use of new data formats in ISO20022 standard in electronic banking services via internal information systems of participants NPS infrastructure participants 20.12.2021-30.12.2022 4.4 Eliminate deficiencies identified in new ISO20022 data formats during testing of NPS components in test environments and present final versions to participants Central Bank PSSD 30.12.2022
3 5 Organize transition to real-time use of ISO20022-compliant data formats 5.1 Real-time release of new versions of NPS infrastructure components supporting ISO20022 Central Bank PSSD 01.03.2022-30.06.2022 5.2 Participants who have completed introduction of new ISO20022 data formats in internal information systems start using them in real time NPS infrastructure participants 01.04.2022-30.12.2022 5.3 Launch of real-time use of new ISO20022 data formats in e-banking via internal information systems of the participants NPS infrastructure participants 01.04.2022-30.12.2022 6 Organize works on use of ISO20022 by participating organizations in SWIFT infrastructure 6.1 Create functionalities for participants to conduct operations in international financial markets under ISO20022 using SWIFT infrastructure in internal information systems NPS infrastructure participants 31.03.2022-30.11.2022 6.2 Carry out pilot works on adjusting operations in international financial markets to ISO20022 using the SWIFT infrastructure in internal information systems of the participants NPS infrastructure participants 01.12.2022-31.03.2023 6.3 Initiation of real-time ISO20022-based transactions in international financial markets by participants using SWIFT infrastructure NPS infrastructure participants Within timeframe coordinated with correspondent banks 7 Evaluate results on application of ISO20022 and expand its use 7.1 Collect and analyse feedbacks and suggestions from participants on the use of ISO20022-compliant formats for NPS components Central Bank PSSD 01.09.2022-31.10.2022 7.2 Evaluate participants' transition performance on the use of ISO20022- compliant formats for NPS components Central Bank PSSD 01.11.2022-30.12.2022