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Why were the NACHA operating rules related to international payments changed?

April 26, 2017changed International nacha operating PAYMENTS rules

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Why were the NACHA operating rules related to international payments changed?

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The IAT was developed in response to a request from the Office of Foreign Asset Control (OFAC). OFAC understands that there are currently transactions flowing through the ACH Network that are funded by international sources. These transactions cannot currently be identified within the Network, and are formatted as domestic transactions. OFAC has requested that NACHA modify the NACHA Operating Rules to adequately identify international transactions, and have the banks review the international transactions for OFAC compliance.