Fergie's Tech Blog

Banks Told to Prep for New International ACH Rules

Nancy Feig writes on Bank Systems & Technology:

There is less than a year before the NACHA rule and format for international ACH transactions (IATs) go live. The rule change, which will enable all U.S. financial institutions to readily identify cross-border payments carrying remittance information that details all the parties to the payment, takes effect March 20, 2009, and presents both opportunities and challenges for banks.

The new IAT rule will identify international automated clearing house (ACH) transactions by focusing on where the financial agency that handles the payment transaction is located, according to NACHA, the Herdon, Va.-based payments organization. As a result, certain international transactions that currently are formatted as domestic transactions because they are conducted through a U.S.-based correspondent relationship instead will be classified as IATs.

posted by Fergie @ 4/28/2008 01:05:00 PM