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If ODFIs believes they have no relationships with Third-Party Senders they must attest to accordingly.
INTERNAL AUDIT REQUIREMENTS FOR BANKS REGISTRATION
How do I know if I’ve been registered?Īs part of the registration process, ODFIs will provide basic demographic information about Third-Party Senders. The ACH audit requirements, which include separate requirements for ODFIs, Third-Party Senders, and Originators, respectively, have been implemented to monitor compliance with the NACHA requirements. This arrangement results in an indirect relationship between the ACH Originator and the financial institution serving as the ODFI. In many cases, a Third-Party Sender provides a service to businesses who need to originate ACH payments but do not have a direct relationship with an ODFI. Third-Party Senders, which can take a number of forms, are the ODFI’s direct customers, that submit ACH transactions through the ODFI. Recently we have experienced additional inquiries from our clients (and their clients) needing our help with ACH audits. As a result of the registration rule, there has been heightened awareness regarding ACH Audit requirements of Third-Party Senders and Services Providers. NACHA Rules also require proof be provided within 10 days of the request of evidence of their annual ACH Audit by December 31 of each year. This requirement requires ODFIs to register their Third-Party Sender customers with NACHA no later than March 1, 2018. As a means to ensure the integrity of ACH activity, the National Automated Clearing House Association (NACHA) has implemented a Third-Party Service Providers registration requirement, which was issued on September 29, 2017. Many companies turn to their banks or other financial institutions, who can serve as Originating Depository Financial Institutions (ODFIs), to gain access to the ACH network. The efficiency and increased ease of access to paperless transactions has caused a significant growth in the use of ACH transactions as a method of exchanging funds. JOriginating depository financial institutions (ODFIs) and third-party service providers and senders