ISO 20022 – Financial Messaging Standards Auditing in Payment Systems

Course Objectives:

• Understand the structure and principles of ISO 20022 messaging standards.
• Evaluate the implementation and usage of ISO 20022 in payment systems.
• Develop auditing strategies for ISO 20022-based financial transactions.
• Identify potential risks, compliance issues, and gaps in financial messaging systems.
• Ensure adherence to best practices and regulatory standards in financial messaging.

Introduction to ISO 20022 and Financial Messaging

• Overview of ISO 20022:
  • History, evolution, and purpose of ISO 20022.
  • Key benefits of adopting ISO 20022 standards in financial messaging.
  • Comparison with legacy messaging standards (e.g., SWIFT MT).
• Components of ISO 20022 Messages:
  • Structure of an ISO 20022 message: header, body, and trailer.
  • Data elements and message types (e.g., payment initiation, account reporting, and securities transactions).
  • Key message categories in payments (e.g., Credit Transfer, Direct Debit, Payment Status).

ISO 20022 Implementation in Payment Systems

• Adoption of ISO 20022 in Global Payment Networks:
  • Overview of global financial institutions and payment systems adopting ISO 20022 (e.g., SEPA, SWIFT gpi).
  • The transition process from legacy systems to ISO 20022-based systems.
  • Benefits and challenges faced during implementation.
• ISO 20022 in Cross-Border Payments:
  • Role of ISO 20022 in enhancing cross-border payment transparency.
  • Interoperability between different financial institutions and regions using ISO 20022.

Auditing ISO 20022-based Payment Systems

• Auditing Methodologies:
  • Techniques and tools for auditing ISO 20022 transactions.
  • Identifying risks and vulnerabilities in message transmission, formatting, and compliance.
  • Developing audit plans for ISO 20022-based systems.
• Common Compliance Requirements:
  • Regulatory standards affecting ISO 20022 compliance (e.g., GDPR, PSD2).
  • Ensuring security and data privacy in payment transactions.
  • Verifying message integrity, accuracy, and consistency.

Risk Management and Best Practices in ISO 20022 Auditing

• Risk Management in ISO 20022 Messaging:
  • Identifying potential risks in the use of ISO 20022 (e.g., fraud, data leakage, operational errors).
  • Mitigating risks through effective audit strategies and controls.
  • Best practices for ensuring compliance and minimizing errors in financial transactions.
• Future Trends and Enhancements:
  • Evolving ISO 20022 standards and their implications on future payment systems.
  • Role of AI and automation in enhancing auditing practices for ISO 20022 systems.
  • Exploring emerging technologies (e.g., blockchain) and their integration with ISO 20022.

DATE:
1ST BATCH: 25th – 28th Mar, 2025
2ND BATCH: 7th – 10th Oct, 2025