PR - NACHA Marks One-Year Countdown to New Rules for International ACH Transactions

The NACHA rule and format for international ACH transaction (IAT) becomes effective on March 20, 2009, and will enable all U.S. financial institutions to send and receive cross-border ACH payments that can be readily identified and that carry remittance information identifying all the parties to the payment.

All U.S. financial institutions are affected by this change, even those that do not currently send or receive international ACH payments, as any financial institution may potentially receive an IAT transaction. NACHA, the ACH Operators and the Regional Payments Associations are asking financial institutions to begin preparations now to ensure that they are ready for the implementation next year.

"Given the significance of this change, it is essential that financial institutions start now to understand and implement the rule," said Richard R. Oliver, executive vice president and retail payments product manager of the Federal Reserve System. "The testing process, both internally and with vendors, will be extensive, and it is critical that all U.S. financial institutions have this completed by March 20, 2009."

NACHA and the two ACH Operators–the Federal Reserve System and the Electronic Payments Network–have sent a joint letter addressed to the chief executive officers of U.S. financial institutions, explaining the new rule, encouraging implementation and testing, and offering resources and assistance.

NACHA and the Regional Payments Associations will offer a variety of resources to assist the ACH community in preparing for implementation of the IAT rule, including teleseminars, webinars and publications. The first teleseminar offered by NACHA will be held at 1:30 p.m. EDT April 28, 2008. For more information about the teleseminar, go to www.nacha.org and click on the link under Upcoming Events.

"Even if your financial institution does not currently originate or receive international payments, it is critical that all financial institutions be ready for March 20, 2009," said Rosanna F. Salaris, senior vice president of The Clearing House, responsible for EPN. "The U.S. payments system and the ACH Network are rapidly adapting to the globalization of commerce, and the new rule will permit financial institutions to perform due diligence with respect to each international ACH payment as required by OFAC."

For more information about implementing the IAT rule and format, contact your Regional Payments Association or NACHA (703-561-1100).