The Bangko Sentral ng Pilipinas (BSP) could mandate that all banks, e-wallets, and clearing houses adopt the internationally accepted ISO 20022 messaging standard, modernizing domestic payment systems and aligning with global financial protocols.

In a draft circular dated April 2025, the BSB noted “the need to align with the use of global payment standards and best practices to ensure a safe, efficient, and reliable payment system that supports inclusive economic growth.”

Currently being circulated among banks and non-banks, the draft circular is in line with the National Payment Systems Act (NPSA) or the Republic Act No. 11127, and existing BSP regulations on payment system operations.

Under the proposed policy, all payment messages must conform to internationally aligned communication standards or ISO 20022 formats, which include detailed sender and recipient information.

These details must remain unchanged throughout the transaction process, although additional information may be included to clarify the payment.

For cross-border payments, customer remittance information must be transported across the end-to-end cross-border payment chain, either by including a minimum amount of structured or unstructured remittance information within the payment message or by referencing such information when sent separately.

Cross-border payment messages must also clearly identify all involved financial institutions and parties using standard formats, including the required use of business identifier codes (BIC) or legal entity identifiers (LEI) where applicable.

“To ensure traceability, cross-border payment messages must also have a unique end-to-end transaction reference (UETR),” the draft circular said.

To ensure a smooth rollout, the BSP will form an industry project team to coordinate with banks, payment providers, and other stakeholders during the transition to ISO 20022.

Banks and payment providers that “fail to comply with these regulations may be subject to enforcement actions” as provided under the central bank’s regulations.

Banks and other financial service providers have until May 22 to submit their feedback. The circular will take effect 15 days after it is published in a newspaper of general circulation or the Official Gazette.