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ABA: The American Bankers Association

NACHA International ACH Transaction Rule

The NACHA International ACH Transaction rule expands the definition of cross-border Automated Clearing House (ACH) entries and requires that additional information accompany each payment, such as the name and address of the sender and receiver.

The rule change was made at the request of the Office of Foreign Assets Control (OFAC) to align NACHA rules with OFAC obligations and to make it easier to comply with the law. The additional information that will be included in these transactions makes it easier for banks to use automated programs to run matching programs with the OFAC list.

Complying with this rule is not optional. Every bank that participates in the ACH system must be prepared to receive IAT transactions and to match them to OFAC's list. Banks that originate ACH transactions will be responsible for working with their clients to determine if certain payments meet the IAT definition and contain the additional information required. Each bank's OFAC Compliance Policy and ACH Policy should include procedures to comply with these requirements.

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