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Can you summarize Risks Associated with Money Laundering and Terrorist Financing > Automated Clearing House Transactions (2014)?
Risks Associated with Money Laundering and Terrorist Financing > Automated Clearing House Transactions (2014)
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 involve payment instructions to credit or debit a deposit account, while IATs are ACH entries that are part of payment transactions involving a financial agency’s office located outside the United States. The document explains 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 highlights the risks associated with ACH transactions, including money laundering and terrorist financing, and provides guidance on risk mitigation strategies. Additionally, the document discusses the importance of compliance with Office of Foreign Assets Control (OFAC) regulations and the screening of ACH transactions for potential sanctions violations.
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