NACHA Government Relations Update - Feb. 2, 2017

Posted February 1, 2017

CFPB Releases Small Entity Compliance Guide for Prepaid Rule
On Jan. 31, 2017, The CFPB released the Small Entity Compliance Guide for Prepaid Rule, a document that seeks to explain the final rule – which was issued by the Bureau on Oct. 5, 2016.  The summaries, charts, and reference materials offer a way to understand the rule and see which provisions are likely to apply to certain products or businesses. The Prepaid Rule is effective on Oct. 1, 2017.
 
 

NACHA Provides Comments on Federal Government Participation in ACH Network

NACHA provided comments on the notice of proposed rulemaking (the “Proposed Rule”) regarding the Federal Government Participation in the Automated Clearing House (“ACH”), which was published by the Department of the Treasury, Bureau of the Fiscal Service (the “Fiscal Service”) on November 30, 2016. Title 31 CFR part 210 (“Part 210”) governs the use of the ACH Network by Federal agencies, and incorporates the NACHA Operating Rules (“NACHA Rules”) published by NACHA, with certain exceptions. The Proposed Rule would amend Part 210 to incorporate 2014, 2015 and 2016 amendments to the NACHA Rules, and to identify provisions of such amendments and other NACHA Rules that would not apply to Federal agencies.

After first providing some brief background information, NACHA offered comments on the Proposed Rule attached. At the outset, however, NACHA is pleased that the Fiscal Service is agreeing to adopt most of the 2014, 2015 and 2016 amendments to the NACHA Rules, including agreeing to participate in Same Day ACH, which we believe will bring an important level of consistency and fairness to the ACH Network and all participants. NACHA offered specific comments on a few select aspects of the Proposed Rule. Specifically, NACHA believes that: (i) the Fiscal Service’s approach to adopting Same Day ACH should be modified, and (ii) three of the exceptions to the NACHA Rules that would be implemented by the Proposed Rule are inappropriate and should not be adopted. Finally, we believe that the Fiscal Service should implement a process to provide for more regular and timely adoption of NACHA Rules amendments.

 

Trump Signs Executive Order on Regulations
On Jan. 30, 2017, President Donald Trump signed an executive order requiring that for every new federal regulation implemented, two must be rescinded. The order, signed in the Oval Office, fulfills a campaign pledge.
 
 
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