International ACH Transactions
As electronic payments have grown, so has their use across national borders. To ensure that cross-border payments are both efficient and secure, Nacha worked with the Office of Foreign Assets Control (OFAC) to develop an ACH format that includes information on all parties to the transactions. This format allows RDFIs to easily comply with the Rules and streamline international payments.
International ACH Transactions (IATs) are regulated under a Rule, which includes two major points:
- It requires Gateway Operators to classify payments that are transmitted to or received from a financial agency outside the territorial jurisdiction of the U.S. as International ACH Transactions (IAT).
- It includes information on all parties to the ACH transactions.
The Rule benefits RDFIs by making it easier to determine whether a transaction is domestic or international. It also allows those institutions to comply with legal obligations by including additional data and screening indicators, making it easier for RDFIs to intercept unlawful transactions.
IAT Downloadable Resources
IAT Corporate Tools
- IAT for Corporate Practitioners, Executive Summary
- Sample IAT Corporate Communication to Employees and Vendors
- Guidance for IAT Corporate Due Diligence
- IAT Payment Scenarios Simplified
- IAT FAQs for Corporate Practitioners
- IAT Equation
- Is My Transaction an IAT?
- IAT Readiness Checklist for Corporate Practitioners
- IAT Corporate Newsletter Article
- IAT Specific Data Elements
- IAT Overview for Corporate Practitioners
IAT Industry Guidance
- U.S. Treasury Department's OFAC Framework for Compliance Commitments
- ACH Operations Bulletin - IAT Processing and the "Effect of Illegality" (September 20, 2010)
- OFAC Statement on Crediting Beneficiary's Account Prior to OFAC Screening (July 2012)
- Revised Guidance on Inbound IAT Debit Processing
- OFAC Letter to Nacha (November 2004)
- OFAC Domestic ACH Policy
International ACH Transactions FAQs
International ACH Transactions (IAT) are more common every year, so it’s critical that your financial institution stays up-to-date on secure and efficient IAT processing.
International Payments Glossary
Terms from A to Z of international payments can be confusing. This list of frequently used terms can help you navigate through.
International Payments Acronyms
The ABCs of international payments can be confusing. This list of frequently used acronyms can help you sort out AML to XML.
ISO 20022
ISO 20022 enables greater automation and straight-through processing, while reducing payments exceptions and risk. Nacha is leading efforts to promote ISO 20022 integration in the U.S. and helping stakeholders understand the benefits and implications for our industry.
Industry Resources
For additional information on international transactions, visit these industry resources:
International Payments Consulting
AML? KYC? OFAC? That’s a lot of letters. But if you want to use the ACH Network in the United States you’ll need to know what they mean. And that’s just the beginning. Nacha Consulting has worked extensively with international clients to familiarize them with the U.S. payments system, the Nacha Operating Rules and applicable U.S. laws.
