International ACH Transactions (IAT)
Beginning Sept. 18, 2009, NACHA Operating rules will require all international payments made via the ACH network to be identified as International ACH Transactions using a new Standard Entry Class (SEC) Code – IAT.
Commerce Originators will receive ongoing communication about how to comply with this change.
View the most recent communication >>
What is an IAT transaction?
IAT Transaction means a credit or debit entry is part of a payment transaction involving a financial agency’s office that is not located in the territorial jurisdiction of the United States.Why is this change necessary?
The purpose of the IAT rule is to enable financial institutions to identify international ACH payments and perform due diligence as required by the U.S. Office of Foreign Assets Control (OFAC).
What should an originator do now?
- Familiarize yourself with the new ACH Rules and Formats related to IAT;
- Review your existing OFAC compliance policy and procedures;
- Review all the existing payments you originate or receive via the ACH Network for possible IAT scenarios;
- Review your company’s current ACH origination software to ensure the information is available to populate the mandatory fields required for IAT transactions;
- If software updates are required, communicate with your vendor(s) to discuss their implementation timeline;
- Contact your Treasury Services Officer to schedule ACH testing at Commerce Bank.
Resources
NACHA – The Electronic Payment Association
http://www.nacha.org/c/IATIndustryInformation.cfm
If you have questions, please contact your Treasury Services Officer during normal business hours or Commercial Customer Support at 800-207-0886 between the hours of 7:00 a.m. and 7:00 p.m. (CT) Monday through Friday.
Disclosures:
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