Second SWIFT white paper on SEPA sets out concrete steps to define end-state and build a migration plan.
SWIFT, the financial messaging provider for more than 10,000 financial institutions and corporations in 210 countries, today released a white paper proposing a step-by-step plan for achieving SEPA compliance within the challenging timeframe now enshrined in the SEPA end date regulation.
The SEPA Migration End Data regulation passed by the European Parliament sets 1 February 2014 as the deadline for migration to SEPA credit transfers (SCT) and direct debit transactions (SDD) in Euros.
Now there is a clear deadline for migrating domestic payments instruments on to SEPA standards, stepping up to the migration challenge must become a priority for both banks and corporates alike, the SWIFT white paper argues. And 24 months to move to full SCT and SDD usage is a serious challenge for all institutions. Even those that are fully operational and have complete migration plans will have to refine and scale up their processes and applications to meet their obligations.
The new SWIFT white paper proposes a series of preparatory steps to be taken when building a SEPA migration plan.
- Start by building a clear picture of the instruments you are already clearing, where – channel by channel, transaction type by transaction type
- Create a ‘SEPA checklist’ detailing what exactly you need to migrate to SEPA compliance
- Determine the business value for you of achieving compliance: does it support your overall strategy for clearing?
- Select the right messaging provider to support you
“The time has come to take concrete actions to achieve SEPA compliance,” says Marc Pomes Bordedebat, Senior Market Manager Payments, EMEA at SWIFT.
“SWIFT can help market participants analyse their payments traffic across all of their banking communication channels to identify what they will need to migrate, and by when. Based on this, we can then assist with building a roadmap for migration, give recommendations on priorities and help customers reconsider their clearing strategy.”