NACHA Approves Network Enforcement Rules
NACHA has announced that its voting membership has approved the Network Enforcement Rule as an amendment to the NACHA Operating Rules. "The implementation of the Network Enforcement Rule, the first rule change under NACHA’s comprehensive risk management strategy, is intended to give NACHA and the ACH Rules Enforcement Panel greater ability to enforce the NACHA Operating Rules."
“The ACH Network is a safe, high-quality payments system that has operated for close to 35 years,” said Roy DeCicco, senior vice president, JPMorgan Chase, and chairman of NACHA’s Risk Management Advisory Group.
“NACHA, its members, and the ACH Operators consider implementing a comprehensive risk strategy a high industry priority. The approval of the Network Enforcement Rule is a key component to ensuring the ACH Network continues to provide high quality, cost-effective payment options for financial institutions, businesses, and consumers.”
Specifically this rule will:
- Modify the structure of the National System of Fines and increase the amounts of the fines that may be levied by the ACH Rules Enforcement Panel;
- Permit the ACH Rules Enforcement Panel to direct an ODFI to suspend an Originator or Third Party Sender (“Originator”);
- Create a new Rules compliance tool, based primarily on return rate for unauthorized reasons transaction reports.
"Quality improvements and comprehensive risk reduction can be accomplished through the series of prudent changes to the rules that have been identified by the industry,” said Steve Ellis, executive vice president, Wells Fargo, and chairman of NACHA Board of Directors. “Participants in the ACH Network should consider this rule change as one component in the broader context of the whole strategy.”
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