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Can you summarize Expanded Examination Procedures For Products and Services > Automated Clearing House Transactions?
Expanded Examination Procedures For Products and Services > Automated Clearing House Transactions
Short Summary
This document provides an overview of Automated Clearing House (ACH) transactions and International ACH transactions (IAT). It assesses the adequacy of a bank’s systems to manage the risks associated with ACH and IAT transactions, as well as the bank’s ability to implement effective monitoring and reporting systems. ACH transactions are payment instructions to credit or debit a deposit account, primarily used for domestic payments. IATs involve payment transactions with financial agencies located outside the territorial jurisdiction of the United States. The document highlights the roles and responsibilities of various participants in the ACH system, such as originators, originating depository financial institutions (ODFIs), ACH operators, receiving depository financial institutions (RDFIs), and gateways. It also discusses the risks associated with ACH transactions, including money laundering and terrorist financing, and provides guidance on risk mitigation measures. Additionally, the document addresses the importance of compliance with Office of Foreign Assets Control (OFAC) regulations in ACH and IAT transactions. Overall, it aims to ensure that banks have adequate systems in place to manage the risks associated with ACH and IAT transactions and comply with relevant regulations.
Whom does it apply to?
Banks and financial institutions involved in ACH transactions and IATs
What does it govern?
Automated Clearing House (ACH) transactions and International ACH transactions (IAT)
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
U.S. Federal Government