Posted September 29, 2017
Risk Management Portal Opens to Support Registration and Other Risk Management Services
HERNDON, Va., Sept. 29, 2017 – Today, NACHA—The Electronic Payments Association® announced the Third-Party Sender Registration Rule is in effect. The Rule, which was approved last year, requires Originating Depository Financial Institutions (ODFIs) to register their Third-Party Sender customers with NACHA. Registration will take place through NACHA’s new Risk Management Portal, which also opens today.
“The implementation of the Third-Party Sender Registration Rule is an important part of our ongoing efforts to maintain the high quality of the ACH Network,” said Jane Larimer, chief operating officer at NACHA. “Third-Party Senders play an important role in expanding access to ACH payments. The new registration process will increase ODFI and industry understanding of Third-Party Senders and will promote ODFI due diligence, as well as standardize a minimum set of customer information that must be available for registration.”
As part of the registration process, ODFIs will provide basic information such as the name and location of Third-Party Senders. ODFIs that have no Third-Party Sender customers must attest to maintaining no such relationships.
ODFIs will use NACHA’s new Risk Management Portal for registration purposes. The Risk Management Portal is designed for convenient access to NACHA’s risk management services, including Third-Party Sender Registration. Additionally, financial institutions can use the Portal to register their Direct Access Debit Participants, an existing requirement per the NACHA Operating Rules, and sign up to participate in the Terminated Originator Database. The Terminated Originator Database allows industry participants to add and search for Originators terminated for cause.
“Third-Party Sender Registration is one component of our broader program to educate and train the industry on understanding and identifying third-party processing relationships, and applying appropriate risk management practices,” said Larimer.
As a separate and distinct program from registration, NACHA launched NACHA Certified in April 2017 to encourage and promote continued quality among Third-Party Senders. NACHA Certified is a voluntary program in which Third-Party Senders can support continued Network quality improvement by achieving certification. In order to become NACHA Certified, Third-Party Senders must meet published criteria and demonstrate current compliance and specific measures of corporate governance and risk management.
To learn more about the Third-Party Sender Registration Rule, NACHA Certified, and/or NACHA’s other risk mitigation services, programs and tools, visit nacha.org.