Posted March 31, 2015
To help clarify use of International ACH Transactions (IAT) for transactions initiated by money transmitters or third-party service providers that involve a U.S. bank and foreign bank, NACHA has issued a revised IAT Scenario H. The revised IAT Scenario H provides guidance on when to format entries as IATs when money transmitters or third-party service providers use the ACH Network to debit a U.S. bank account to send funds to another country or credit a U.S. bank account with funds from another country. Ultimately, the revised IAT Scenario H concludes that these credit/debit transactions to U.S. banks should be formatted as IAT entries. This is the case even if the money transmitter or third-party service provider is consolidating the funds from the ACH debit entries in a U.S. bank account and then moving the consolidated funds to the receiving country.
Click here to view the revised Scenario H. It can also be found in the IAT Solutions Center of the NACHA website If you have questions, please contact Priscilla Holland at email@example.com or 703-561-3916.
Note: NACHA has reviewed the revised IAT Scenario H with the Office of Foreign Assets Control and confirmed the accuracy of its conclusion defining the inbound ACH debit or credit to be formatted as IAT entries.