Nacha voting members this week approved new rules aimed at increasing the efficiency of international Automated Clearing House transactions, or IATs, according to the organization.
One new rule requires U.S. financial institutions to register IAT-specific contacts in Nacha’s ACH Contact Registry. Other rules add the capability to carry a person’s date of birth for sanctions screening; add a new return reason to indicate an issue with sanctions screening as distinct from other return reasons; recognize the possibility that the financial agency outside the U.S. is a non-traditional account-holding institution or organization; and refines the definition of an IAT to make it easier for ACH Originators and Originating Depository Financial Institutions, or ODFIs, to determine whether a payment should be classified as an IAT.
The existing Nacha rules for IATs have been in effect since 2009. Nacha in 2024 adopted rules concerning fraud monitoring that will be phased in starting next year. The new rules will be phased in over the next few years, with Nacha maintaining a timeline on its website.
