Preparing for OFAC Screening on International ACH Transactions
EPN, the ACH business of The Clearing House Payments Company, is urging financial institutions to start planning now to meet OFAC requirements for new international ACH transactions (IAT) in March 2009 and has created an IAT Readiness Checklist to help financial institutions prepare.
The recent NACHA rule amendment and format change for International ACH Transactions (IAT) will allow U.S. financial institutions to recognize cross- border ACH payments. Beginning March 20, 2009, all U.S. financial institutions will be affected by the change - including those that are not currently sending or receiving international ACH payments - because they could potentially receive an IAT transaction.
EPN's IAT Readiness Checklist includes a comprehensive set of recommendations for both financial institutions and corporate originators. To see the list, go to http://www.epaynetwork.com.
"With the introduction of IAT, all in-bound, cross-border ACH transactions will now have to be screened by RDFIs to comply with OFAC requirements," said Rossana Salaris, Senior Vice President of The Clearing House, responsible for EPN. "As an operator, EPN not only processes ACH transactions, but also provides a wide range of value-added services to help financial institutions manage the growing complexity in the ACH."
EPN provides a centralized OFAC screening service as part of EPN WATCH(R), a comprehensive suite of risk management services available to institutions of all sizes, regardless of who their ACH operator is.
For more information, contact Mark Tizzard, ACH Strategic Product Development, 336.769.5441, mark.tizzard@epaynetwork.com.
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