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11/22/2019

Nacha Voters Approve

ACH Contact Registry

Nacha



Nacha’s Voting Membership recently approved the proposed amendment for an ACH Contact Registry.

This rule will create a new industry resource for financial institutions (FIs) to more easily connect with other FIs about ACH operations, exceptions and risk management. For the ACH Contact Registry to be a valuable, network-wide resource, all FIs that use the ACH Network must register.

The registry will be available for FIs beginning July 1, 2020, and registration required by Oct. 30, 2020.

An industry resource – the ACH Contact Registry - is being created for financial institutions to be able to more easily connect with other financial institutions about ACH operations, exceptions and risk management. In order for the ACH Contact Registry to be a valuable, Network-wide resource, all financial institutions participating in the ACH Network need to participate. This rule enables the creation of this resource by requiring the registration of contact information by all financial institutions that participate in the ACH Network.

Details

All financial institutions participating in the ACH Network will be required to register contact information with Nacha for personnel or departments responsible for ACH operations and fraud/risk management. The contact information will be available for other registered ACH participating financial institutions, Payments Associations, the ACH Operators, and Nacha for operational, fraud, and risk management issues in the ACH Network (e.g., proof of authorizations, ACH-related system outages, erroneous payments, duplicates, reversals, fraudulent payments, etc.). Contact information will be only for those parties own, internal use and limited to these purposes.

Technical

  • Beginning July 1, 2020 All financial institutions participating in the ACH Network will be required to register contact information with Nacha for personnel or departments responsible for ACH operations and fraud/risk management.

  • All FIs must register contact information by October 30, 2020

  • Registration will be done via the Risk Management Portal.

  • The registry of financial institution contacts will be made available to registered financial institutions, the ACH Operators, and Payment Associations to use in addressing and resolving ACH operations and risk management situations.

Impact

Currently, all ODFIs are required to register with Nacha both their Direct Access status, and their Third-Party Sender status

  • Under this Rule, ODFIs also would be required to add an additional registration category to provide their own contact information for ACH operations and risk/fraud, and keep that information up-to-date
  • ODFIs would have to implement procedures to keep contact information up-to-date


Currently, financial institutions that are only RDFIs are not required to register information with Nacha, but voluntarily can enroll through the Risk Management Portal for the optional Financial Institution Contact Database and the Terminated Originator Database

  • Under this Rule, all RDFIs would be required to register contact information with Nacha, and keep that information up-to-date
  • RDFIs would have to implement procedures to keep contact information up-to-date


Annual verification may be performed in conjunction with the annual Rules compliance audit

The rule will become effective, and the ACH Contact Registry will become available for FIs to begin submitting contact information, on July 1, 2020. Registration will be done via the Risk Management Portal. Compliance with registration requirements must be completed by October 30, 2020. An additional 9-month grace period (to August 1, 2021) will be provided to ensure broad communication of this requirement before failure to register could be considered a Rules violation.

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