How does the ODFI know the funds will ultimately move internationally?
It is the responsibility of the ODFI to educate their originators, and the responsibility of the originators to review their client files to determine if IAT might be needed. One clue to watch for would be foreign addresses in receiver’s customer files. In that example, the originator should contact the receiver. Some originators will choose to be cautious and use IAT when they suspect the funds will move internationally. ODFIs must do their due diligence with their customers to communicate and educate on IAT. ODFIs must have proper agreements with their originators that address this.
