The American Bankers Association today said it supports seven proposed enhancements to the International Automated Clearing House Transaction framework by Nacha, including eliminating the current restriction on same-day processing. The IAT framework was developed in 2009 by Nacha in coordination with the Office of Foreign Assets Control, or OFAC, to make cross-border electronic payments more secure.
Nacha in March proposed the updates to the IAT rules, which were last modified more than a decade ago. In addition to eliminating the same-day processing restriction, other changes under consideration include simplifying the IAT definition, allowing a date of birth field for transactions involving a natural person and allowing outbound IATs to accounts at nonbanks.
ABA said it generally supports all seven proposals, although it raised concerns about certain elements under consideration. For example, while the association supports lifting the same-day processing restriction, it has concerns regarding inbound entries that are received late in the day and are in the process of an OFAC review but may not have been flagged to OFAC matches. “We prefer the IAT rule section state that the same-day funds availability be made only if the OFAC review is complete,” ABA said.
ABA also noted the seven proposals were accompanied by a request for information on four topics that may be subject to draft rules in the future. The association recommended that Nacha not pursue rulemaking on any of the four topics.
