Posted November 2, 2017
Registrations are result of successful implementation of Third-Party Sender Registration Rule on Sept. 29
New rule supports identification and understanding of Third-Party Sender relationships by ODFIs
HERNDON, Va., Nov. 3, 2017 – Today, NACHA—The Electronic Payments Association® announced that Originating Depository Financial Institutions (ODFIs) have registered 1,069 Third-Party Senders with NACHA.[i] The Third-Party Sender registrations are a result of the successful implementation of NACHA’s Third-Party Sender Registration Rule, which became effective on Sept. 29. The Rule requires ODFIs to register their Third-Party Sender customers through NACHA’s Risk Management Portal, which also launched on Sept. 29, and is a key component of NACHA’s ongoing efforts to maintain ACH Network quality.
“Third-Party Senders provide important services to expand access to and use of ACH payments,” said Jane Larimer, chief operating officer and general counsel at NACHA. “The Third-Party Sender Registration Rule allows financial institutions to better understand and identify these ACH Network participants to support due diligence and effective risk management. We are encouraged by the number of registrations to date, as it demonstrates the continued commitment to ACH quality by the nation’s financial institutions.”
Per the Rule, ODFIs are required to provide basic information such as the name and location of Third-Party Senders for registration purposes. ODFIs that have no Third-Party Sender customers must attest to maintaining no such relationships. Registration must be completed by March 1, 2018.
In addition to registering Third-Party Sender customers, financial institutions can also use the Portal to sign up to participate in two optional services: the Terminated Originator Database and the Emergency Financial Institution Contact Database. The Terminated Originator Database allows industry participants to add and search for Originators terminated for cause. The Emergency Financial Institution Contact Database can be used to find contact information for key bank personnel responsible for coordinating threat response activity in the event of a risk incident or emergency.
To date, more than 336 financial institutions have signed up for the Terminated Originator Database. Additionally, 431 financial institutions have signed up to participate in the Emergency Financial Institution Contact Database.
“The positive response to the Third-Party Sender Registration Rule and the other services offered by NACHA’s Risk Management Portal show the importance of risk management to industry participants and the value that NACHA’s services provide,” said Larimer. “We will continue to support the industry with tools and services to complement these and other risk management efforts.”
To learn more about the Third-Party Sender Registration Rule and NACHA’s other risk management services, programs and tools, visit www.nacha.org/risk/tools.
[i] All data points in press release are as of Oct. 31, 2017.