BoE confirms expansion of mandatory ISO 20022 enhanced data requirements in CHAPS

The Bank of England (BoE) has published its consultation response and policy statement confirming the expansion of mandatory ISO 20022 enhanced data requirements for CHAPS payments, following its 2024 consultation. Following feedback, it confirms that effective from November 2027, mandatory Purpose Code requirements will apply to all CHAPS payments through channels within direct participants' (DPs) control. The new requirements will not extend to payment initiation channels outside DPs' control at this stage, however, the BoE does expect more payments to move into DPs' control as ISO 20022 adoption increases. DPs are expected to communicate CHAPS requirements to all parties to whom they provide CHAPS access and are encouraged to implement systematic controls and customer education programmes to ensure successful adoption. Pay.UK will apply a similar approach for Faster Payments DPs and will continue to collaborate with the BoE to encourage adoption and best usage practices. While changes to the LEI policy was not part of the consultation, the BoE received feedback on its the approach to including LEIs within ISO 20022 payment messages. In response, the BoE describes steps taken to enhance the stakeholder experience in conjunction with other organisations in the annex to the policy statement. The BoE remains committed to providing at least 18 months' notice for future changes and, in line with this, expects to provide an update by May 2026 on LEI and structured remittance expansions.

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