Nacha voting members have approved five changes to its Operating Rules, aimed at increasing the awareness and efficiency of International ACH Transactions (IATs) within the U.
S. ACH Network.
“The U.
S. ACH Network has supported the capability to send and receive cross-border ACH payments for decades,” stated Jane Larimer, Nacha President and CEO. “These Rules changes should make IATs easier and more efficient to use.” The existing Nacha Rules for IATs were established in 2009, replacing previous cross-border ACH payment rules with a new format designed to ensure compliance with the Travel Rule and Office of Foreign Assets Control (OFAC) sanction programs. In 2024, approximately 121 million IATs were processed.
One of the approved Rules refines the definition of an IAT. This modification is intended to simplify the process for ACH Originators and Originating Depository Financial Institutions (ODFIs) in determining whether a payment should be classified as an IAT.
The remaining approved Rules focus on transaction and data efficiency. These include the addition of a capability to carry a person’s date of birth for sanctions screening purposes, and the creation of a new return reason specifically for issues related to sanctions screening, distinguishing it from other return reasons. Furthermore, the updates recognize the possibility that the financial agency outside the U.
S. might be a non-traditional account-holding institution or organization. Finally, U.
S. financial institutions are now required to register IAT-specific contacts in Nacha’s ACH Contact Registry.
Nacha governs the ACH Network, which serves as the payment system facilitating Direct Deposits and Direct Payments across all U.
S. bank and credit union accounts. In 2024, the ACH Network processed 33.6 billion payments, totaling $86.2 trillion. Nacha is responsible for developing rules and standards, providing industry solutions, and offering education, accreditation, and advisory services through collaboration among diverse payment industry stakeholders.
