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NEWS RELEASE
NACHA’s VOTING
MEMBERSHIP APPROVES
NETWORK ENFORCEMENT RULES BALLOT
First in Series of Rules
to Implement the Industry’s Risk Management Strategy
Herndon,
Virginia, November 26, 2007 - On November
8, 2007, NACHA–The Electronic Payment Association
announced that the voting membership approved the
Network Enforcement Rule as an amendment to the
NACHA Operating Rules. Changes to the National
System of Fines go into effect December 21, 2007,
while new ODFI reporting requirements become
effective March 21, 2008.
The implementation
of the Network Enforcement Rule, the first rule
change under NACHA’s comprehensive risk management
strategy, is intended to give NACHA and the ACH
Rules Enforcement Panel greater ability to enforce
the NACHA Operating Rules.
“The ACH Network
is a safe, high quality payments system that has
operated for close to 35 years,” said Roy DeCicco,
Senior Vice President, JPMorgan Chase, and chairman
of NACHA’s Risk Management Advisory Group. “NACHA,
its members, and the ACH Operators consider
implementing a comprehensive risk strategy a high
industry priority. The approval of the Network
Enforcement Rule is a key component to ensuring the
ACH Network continues to provide high quality,
cost-effective payment options for financial
institutions, businesses, and consumers.”
Specifically this
rule will:
-
Modify the
structure of the National System of Fines and
increase the amounts of the fines that may be
levied by the ACH Rules Enforcement Panel;
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Permit the ACH Rules Enforcement Panel to direct
an ODFI to suspend an Originator or Third Party
Sender (“Originator”);
-
Create a new Rules compliance tool, based
primarily on return rate for unauthorized
reasons transaction reports.
“Quality
improvements and comprehensive risk reduction can be
accomplished through the series of prudent changes
to the Rules that have been identified by the
industry,” said Steve Ellis, Executive Vice
President, Wells Fargo, and Chairman of NACHA Board
of Directors. “Participants in the ACH Network
should consider this rule change as one component in
the broader context of the whole strategy.”
For specific information about the network
enforcement rule or NACHA’s risk management
strategy, please contact your regional payment
association or visit www.nacha.org.
About NACHA -
The Electronic Payments Association
NACHA – The Electronic Payments Association, led by
member depository financial institutions and
payments associations, manages the development,
administration, and governance of the ACH Network.
NACHA represents more than 11,200 financial
institutions through direct memberships and a
network of regional payments associations, and 475
organizations through its industry councils. For
more information, visit
www.nacha.org and
www.electronicpayments.org.
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