Understanding the Shift to MX
SWIFT has upgraded its messaging system from MT (Message Type) to MX (Message XML) as part of adopting the ISO 20022 global standard for financial messaging. This significant change brings richer, more structured data than traditional MT messages, improving data quality and enabling more accurate and consistent processing across financial institutions.
During the transition period, both MT and MX formats are supported. However, by November 2025, SWIFT will cease supporting MT messages entirely. By this deadline, Australian banks must upgrade their IFTI-E reporting to use the MX format or face regulatory non-compliance.
AUSTRAC's Response to the SWIFT Change
In preparation for this industry-wide shift, AUSTRAC has introduced a new IFTI-E reporting schema (version 2.0) for all cross-border payments, ensuring compatibility with the ISO 20022 MX format. This enhancement enables AUSTRAC to significantly improve the quality of its cross-border payment data, thereby strengthening its intelligence-gathering capabilities to combat financial crime in Australia.
Why Early Implementation is Critical
The November 2025 deadline may seem distant, but implementing these changes requires careful planning and execution. Waiting until the last minute creates several risks:
- A rushed implementation could lead to reporting errors and compliance issues
- Your team will need adequate time to train on new systems and processes
- AUSTRAC requires testing of your automation before permitting submissions, a process that typically takes several weeks
In practice, you risk missing the deadline entirely if your organisation isn't ready to commence a migration project by mid-2025. In the worst-case scenario, your team would need to manually load all IFTI-E reports into AUSTRAC Online rather than benefit from automated submission.
Key Recommendations for a Smooth Transition
For financial crime professionals managing this change, consider these practical steps:
- Begin planning your transition strategy now, with completion targeted well before the November deadline
- Ensure your solution can handle both MT and MX messages concurrently during the transition period
- Build in time for thorough testing and AUSTRAC approval of your new reporting mechanism
- Provide comprehensive training for staff who will be using the new systems
How Jade ThirdEye Supports Your MX Migration
Jade ThirdEye offers a comprehensive solution to support your migration from MT to MX and IFTI-E submission. Our platform handles the new MX messages and supports the conversion of MT messages to IFTI-E, allowing you to process both formats concurrently during the transition period.
This dual capability is particularly valuable because, even if your institution has switched to sending only MX messages, you may continue receiving messages in either format until the November deadline.
Additionally, Jade ThirdEye supports the creation of IFTI-E reports from cross-border payments that don't use SWIFT messaging.
Our automation solution is already operational and being used by early adopters. The system takes either MT or MX messages. It converts them to the IFTI-E format, validates that all fields required by the AUSTRAC 2.0 schema have been properly populated, and automatically submits the IFTI-E to AUSTRAC Online through their B2B interface.
Users receive warnings before submission if data is missing and can complete the information directly in the Jade ThirdEye interface. The entire process is thoroughly audited, giving you and your auditors confidence that compliance requirements are being met entirely and correctly.
A Partnership Approach
The Jade ThirdEye implementation team provides comprehensive support throughout the setup and testing process for IFTI-E submissions. Once you're live, our local help desk will continue to support you throughout your contract with us, ensuring Jade ThirdEye remains your trusted partner throughout the transition from MT to MX.
Don't Delay – Start Your Transition Today
Learn more about our IFTI-E reporting solution, or get in touch to book a demo.
