The Bank of Jamaica (BOJ) says the SWIFT message type payment system has migrated to the new ISO 20022 standard.

The migration took effect in JamClear-RTGS (real time gross settlement system) on December 15.

JamClear-RTGS is a payment system specifically designed to process large-value and time-critical payments by financial market participants safely and efficiently. The electronic system allows participants to transfer funds between themselves for their own account or on behalf of their clients, in real time.

The migration to MX, which is a global standard, represents a critical modernisation initiative for payment systems in Jamaica and worldwide, as it is a ‘Universal Financial Industry Message Scheme’ geared towards improving payment efficiency and promoting interoperability among financial institutions, financial market infrastructures and end-users.

In preparation for this significant transition, the BOJ, since 2022, has undertaken extensive work, including comprehensive stakeholder engagement, multiple training and readiness sessions with all JamClear-RTGS participants.

They include deposit -taking institutions and primary dealers, as well as facilitation of community testing of transfers among participants. Further, for a smooth transition, the JamClear-RTGS platform was upgraded in August 2024 to enable hybrid operation of both MX and MT messages in anticipation of full transition by November 30, in alignment with global markets.

However, in the context of disruptions occasioned by a myriad of factors, including the passage of Hurricane Melissa, the BOJ reports that some participants indicated that they were not fully compliant with the operational requirements necessary to ensure a safe and orderly transition to the new messaging standard at the scheduled transition date. 

Go-live timeline extended

In that regard, BOJ extended the go-live timeline to December 15, in keeping with feedback from, and consultation with, participants confirming their readiness to meet the new date. In spite of these extensive preparations and the extension, BOJ is now aware that some banking entities have been experiencing challenges with crediting some of their customers’ accounts. In this regard, the public is advised that the JamClear-RTGS platform is working as required and all issues (delays in transfers, inter alia) are to be immediately reported to their financial institution(s).

The central bank is assuring the public that it is actively monitoring the issues and continues to directly engage JamClear-RTGS participants to ensure the timely resolution of issues arising from their internal system integration, given the implications of delayed payments to customers. The BOJ says it remains fully committed to maintaining the stability, safety, and efficiency of the national payments system and will continue to work closely with all stakeholders to resolve all issues during this post-implementation period.