NAFCU Compliance Blog

IAT Compliance Deadline is Tomorrow; Charleston; Compliance Survey

Posted by Anthony Demangone

The delay of the original compliance date for NACHA’s IAT rule is nearing an end as the revised compliance date, September 18, 2009, is around the corner. Actually, it is tomorrow!  The rule requires that an international ACH transaction entry contain a list of required information as well as BSA’s "Travel Rule" data.

An International ACH Transaction is defined as an ACH entry that is part of a payment transaction involving a financial agency’s office that is not located in the territorial jurisdiction of the United States. Financial agency means an entity that is authorized by applicable law to accept deposits or is in the business of issuing money orders or transferring funds.

An office of a financial agency is involved in the payment transaction if it:

1. holds an account that is credited or debited as part of a payment transaction; or

2. receives funds directly from a Person or makes payment directly to a Person as part of a payment transaction; or

3. serves as an intermediary in the settlement of any part of a payment transaction.

Fortunately, NACHA does provide a wealth of information on its website on the rule, including FAQs, which you can access by clicking IAT Rule Helpful Materials.

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For those of you attending our Regulatory Compliance Conference next month in Charleston, SC, you may want to take a look at TripAdvisor's Charleston page.  On the left-hand side, you'll see links for restaurants and "things to do."  Both list the top attractions in each category.   I can't wait!  But no internet surfing at work!  I don't want you getting fired before the conference.

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Yesterday, NAFCU sent a compliance-related survey to member CEOs and to everyone in our database who has a job title related to compliance.   We're seeking feedback on our performance.  If you are a NAFCU member who didn't receive an email and you'd like to take part, email Lindsay Hunter at lhunter@nafcu.org. She'll email you a copy of the survey, which you can then fax back.

September 18, 2009; CTR Exemption Guidance

Posted by Anthony Demangone

Look at the date above.  Does it ring any bells?  That's the implementation deadline for the new International ACH Transaction (IAT) rules.  Here's a good resource for you if ACH compliance is one of your responsibilities - NACHA's IAT webpage.

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FinCEN has released guidance to help credit unions and other financial institutions comply with CTR exemption requirements.  Specifically, the guidance should help you determine what supporting information is suitable for determining what portion of a business member's annual gross revenues is derived from activities that are ineligible for CTR exemptions.  Read the press release and access the guidance here.  Here's a snippet from the guidance.

The Financial Crimes Enforcement Network (FinCEN) is issuing this guidance to assist banks in determining the appropriateness of exempting from currency transaction reporting requirements non-listed business customers that derive some portion of their annual gross revenues from ineligible business activities.

Kudos to FinCEN.  I've always thought that there isn't enough guidance on CTRs, while we are buried in SAR-related documents. I hope this signals a new trend.