The Cross-Border Payments and Reporting Plus (CBPR+) initiative, led by Swift, is a targeted effort to bring greater consistency to the use of ISO 20022 formats in cross-border payment messaging. In this article, XMLdation breaks down the latest developments, exploring what’s changing and how FIs can stay ahead of the curve
The goal of CBPR+ is simple: to enhance data quality, reduce operational friction, and enable greater automation across the payments value chain. Key changes – such as the move to structured address formats and the recommended use of Legal Entity Identifiers (LEIs) – are designed to enhance consistency, strengthen compliance and improve straight-through processing.
Though the objectives are clear, achieving them will demand coordinated action across the industry. Financial institutions (FIs) must rethink how they collect, validate, and test data – changes that may extend beyond their own infrastructure to their clients’ systems as well. The phased rollout of CBPR+ will help make the transition more manageable, but the standards and requirements are expected to evolve. That makes thorough preparation – and ongoing engagement – critical to long-term success.
One of the most immediate and visible changes under CBPR+ is the move from free text to structured address formats. Under ISO 20022, address data is separated into defined fields such as street name, building number, postal code, and country. This makes messages more consistent and therefore easier to process – improving validation accuracy, the effectiveness of compliance screening and reducing manual intervention.
However, adoption isn’t plug-and-play. Many institutions still rely on legacy systems that were not designed to handle structured data. To bridge the gap, banks will need to support both structured and hybrid address formats in the short term, while adapting their infrastructure to meet new requirements. Hybrid addresses — where structured and unstructured elements coexist — will be crucial for managing this interim period smoothly. This transition must be executed decisively, with structured formats becoming mandatory from November 2026.
As CBPR+ evolves over time, with updates likely occurring annually, FIs that invest now in scalable solutions – such as test environments that simulate real-world flows – will be better positioned to stay ahead of these changes and minimise disruption.
Another important feature in CBPR+ messaging is the Legal Entity Identifier (LEI) – a globally recognised 20-character alphanumeric code used to uniquely identify legal entities in financial transactions.
While not mandatory under CBPR+, their inclusion is strongly recommended for improving transparency and efficiency across the payment chain. By helping to identify entities in a payment chain, LEIs provide greater clarity and confidence in the origin and destination of funds – enhancing trust and transparency across counterparties and supporting smoother, more reliable compliance checks.
However, institutions must manage LEIs responsibly. So that they remain valid, the alphanumeric codes should be renewed annually, and controls must be put in place to catch edge cases such as mistyped, invalid, or lapsed LEIs – and escalate them when necessary. Incorporating LEIs correctly into CBPR+ messages can also be technically challenging, particularly when adapting legacy systems or handling large volumes of transactions
For those looking to unlock the full benefits of LEIs, support tools can be invaluable. XMLdation’s Payment File Testing services help validate that CBPR+ files correctly incorporate LEIs, while its API Sandboxes and Simulator provide test cases to support correct usage – helping institutions build confidence in their compliance from day one.
CBPR+ is not a simple box-ticking exercise – it reflects a broader shift in how global payments are governed and processed. Adopting these practices today sets the stage for better outcomes: faster settlement times, reduced exception handling, and more robust compliance levels. FIs that treat CBPR+ as part of a long-term investment in data quality and operational efficiency will be best positioned to adapt as standards and expectations continue to evolve.