By March 20, 2009, all international transactions made via the ACH network will be required to use the IAT (International ACH Transaction) SEC (Securities and Exchange Commission) code.
It’s a new rule that applies to all ACH participants. The rule will simplify the process of identifying international transactions by requiring that IAT entries include specific data elements defined by the Bank Secrecy Act’s travel rule.
The change will make it easier for depository financial institutions to comply with U.S. laws, such as requirements by the Office of Foreign Assets Control (OFAC). It will also define new parties to the IAT entry and enhance processing efficiencies for all ACH participants.
Read more at www.frbservices.org, including preparation instructions.
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