Accounts

Checking Savings Loans

Rates

Certificate of Deposit Money Market Investment Checking IRAs Savings Loans

Calculators

Retirement Savings Income Savings Tuition Savings Simple Loan Monthly Mortgage Home Affordability

FAQ

Loans Account Information Current Issues Investments Fraud Visa CheckCard Exchange OnLine eStatements

Get the latest from the world of banking.

If any ACH transaction has a final destination or source of funds that is associated with a foreign address, it may be required that the transaction is originated as an IAT or the funds may be received as an IAT transaction.

 

ACH is an abbreviation for Automated Clearing House, which is a network of financial institutions that facilitate electronic transfers. This system makes direct deposit, some bank transfers and some online bill payments possible.

 

Basically defined:  if a transaction includes funds to or from another country and any part of that transaction uses the ACH network, it MUST be an IAT. Wire transfers are not an ACH transaction and are not included in this new rule.

The Office of Foreign Assets Control (OFAC) has requested that the National Automated Clearing House Association (NACHA) align the NACHA Operating Rules with OFAC obligations to enable all parties to a transaction easily to identify transactions that are funded internationally or being sent to other countries via the ACH Network.  

Transactions received as IATs may experience a delay in posting to the account.

  

Funds scheduled to be transmitted to another country (or to someone with a foreign address) may require research by the customer to determine if the transaction needs to be originated as an IAT.

More often than not, this impacts businesses more than consumers. However, consumers who may experience IATs include but are not limited to:

customers with addresses outside the United States

customers using PayPal or other ACH methods to complete transactions

customers whose payroll direct deposit funding originates from a parent company in another country

The four most common scenarios that might require a business to originate an IAT are listed below.

1. Is your company a subsidiary of a multi-national company?

2. Does your company have foreign subsidiaries?

3. Does your company buy or sell to organizations or individuals outside the territorial jurisdiction of the United States?

4. Does your company send payroll, pension or benefit payments via the ACH Network to individuals that have permanent resident addresses outside the territorial jurisdiction of the United States?

 

A more complete questionnaire to determine if your business may conduct IATs may be found by opening the IAT Transaction Analysis Checklist.

 

 

To speak with someone regarding your individual situation, please do not hesitate to contact Vice President Randy Mittelstaedt at 920-924-2444 or use the Contact Us form via our web site. (Please remember: do not send any confidential information including account numbers via the Contact Us form.)

Site Designed by BrownBoots Interactive, Inc.