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International ACH Transaction (IAT) 2008 Survey Results
On September 18, 2009, the new IAT Standard Entry Class (SEC) code will replace NACHA’s Consumer Cross-Border (PBR) and Corporate Cross-Border (CBR) SEC codes for international ACH transactions. This change will allow institutions to better identify international ACH transactions and help them comply with Office of Foreign Assets Control (OFAC) requirements.
In an effort to help measure industry-wide awareness of the IAT SEC code and readiness for this implementation, the Federal Reserve Banks conducted a survey in 2008. A total of 453 responses, representing a variety of institution type and asset sizes, were received from these efforts. The responses comprise a robust sample that provide insights into the industry’s state of readiness for the September 18, 2009 IAT implementation date. The results indicate that the industry-wide awareness campaign is achieving positive results but also that more efforts should be undertaken to ensure greater success.
Below are the results of the 2008 survey. Results of a follow-up survey conducted in 2009 are also available.
How knowledgeable are you about the new International ACH Transaction (IAT) SEC code?
| Institution Type | Extremely and very | Somewhat | Not very and not at all |
|---|---|---|---|
| National Commercial Bank | 42% | 44% | 15% |
| Regional Commercial Bank | 27% | 62% | 10% |
| Community or Savings Bank | 9% | 52% | 39% |
| Credit Union | 6% | 38% | 57% |
| ACH Status | |||
| RDFI only | 4% | 29% | 68% |
| Both ODFI and RDFI | 19% | 53% | 29% |
| Total | 18% | 48% | 34% |
| Results may not equal 100% due to rounding | |||
Which ACH participants do you expect to be affected by the IAT implementation?
| Institution Type | Originators | Receivers | Both originators and receivers (Correct answer) | Unsure |
|---|---|---|---|---|
| National Commercial Bank | 2% | 6% | 84% | 8% |
| Regional Commercial Bank | 0% | 5% | 86% | 8% |
| Community or Savings Bank | 4% | 17% | 62% | 18% |
| Credit Union | 5% | 23% | 50% | 23% |
| ACH Status | ||||
| RDFI only | 9% | 12% | 47% | 33% |
| Both ODFI and RDFI | 2% | 16% | 69% | 13% |
| Total | 4% | 12% | 69% | 15% |
| Results may not equal 100% due to rounding | ||||
Are you aware that all financial institutions need to be able to receive IAT payments effective March 20, 2009?
| Institution Type | Yes | No | Unsure |
|---|---|---|---|
| National Commercial Bank | 92% | 3% | 5% |
| Regional Commercial Bank | 100% | 0% | 0% |
| Community or Savings Bank | 80% | 12% | 8% |
| Credit Union | 71% | 20% | 9% |
| ACH Status | |||
| RDFI only | 53% | 29% | 17% |
| Both ODFI and RDFI | 88% | 8% | 5% |
| Total | 81% | 12% | 7% |
| Results may not equal 100% due to rounding | |||
Has your ACH software vendor been in communication with your organization about IAT readiness?
| Institution Type | Yes | No | Unsure |
|---|---|---|---|
| National Commercial Bank | 64% | 20% | 16% |
| Regional Commercial Bank | 81% | 3% | 16% |
| Community or Savings Bank | 27% | 44% | 29% |
| Credit Union | 30% | 45% | 25% |
| ACH Status | |||
| RDFI only | 19% | 52% | 29% |
| Both ODFI and RDFI | 44% | 32% | 24% |
| Total | 39% | 35% | 25% |
| Results may not equal 100% due to rounding | |||
Overall, what IAT information/training will be helpful to your organization?
| Institution Type | Information on staff training | Explanations of NACHA rules | Best practices for processing IAT transactions | Marketing strategies | Other | Do not need additional info/training |
|---|---|---|---|---|---|---|
| National Commercial Bank | 69% | 83% | 93% | 22% | 10% | 2% |
| Regional Commercial Bank | 61% | 75% | 92% | 25% | 8% | 0% |
| Community or Savings Bank | 66% | 79% | 86% | 9% | 1% | 1% |
| Credit Union | 71% | 73% | 83% | 14% | 1% | 4% |
| ACH Status | ||||||
| RDFI only | 75% | 70% | 75% | 11% | 0% | 6% |
| Both ODFI and RDFI | 66% | 79% | 90% | 16% | 4% | 1% |
| Total | 59% | 78% | 85% | 14% | 4% | 3% |
What type of delivery mechanisms would be helpful to your organization for IAT information and/or training?
| Institution Type | Teleseminars/webinars | In-person training session | On-line self service resource center | On-line question and answer forum | Other (Please specify) |
|---|---|---|---|---|---|
| National Commercial Bank | 88% | 38% | 69% | 55% | 5% |
| Regional Commercial Bank | 94% | 40% | 71% | 66% | 6% |
| Community or Savings Bank | 91% | 26% | 62% | 39% | 1% |
| Credit Union | 88% | 23% | 49% | 33% | 1% |
| ACH Status | |||||
| RDFI only | 83% | 29% | 38% | 31% | 2% |
| Both ODFI and RDFI | 91% | 28% | 66% | 46% | 2% |
| Total | 86% | 26% | 59% | 42% | 3% |
How knowledgeable are you about how the new IAT SEC code will affect your institution's OFAC compliance requirements?
| Institution Type | Extremely and very | Somewhat | Not very and not at all |
|---|---|---|---|
| National Commercial Bank | 35% | 39% | 26% |
| Regional Commercial Bank | 28% | 56% | 17% |
| Community or Savings Bank | 9% | 49% | 43% |
| Credit Union | 5% | 38% | 57% |
| ACH Status | |||
| RDFI only | 2% | 31% | 66% |
| Both ODFI and RDFI | 18% | 47% | 35% |
| Total | 17% | 43% | 40% |
Does your institution or company perform OFAC screening on ACH payments today?
| Institution Type | Yes | No | Don't know |
|---|---|---|---|
| National Commercial Bank | 47% | 43% | 10% |
| Regional Commercial Bank | 39% | 56% | 6% |
| Community or Savings Bank | 56% | 31% | 13% |
| Credit Union | 44% | 29% | 27% |
| ACH Status | |||
| RDFI only | 41% | 27% | 31% |
| Both ODFI and RDFI | 51% | 38% | 12% |
| Total | 48% | 37% | 15% |
How does your institution or company perform OFAC screening on ACH payments today?
| Institution Type | Use automated software | Perform manual screening on some items | Screening performed by payments processor | Don't Perform | Unsure |
|---|---|---|---|---|---|
| National Commercial Bank | 39% | 9% | 5% | 34% | 13% |
| Regional Commercial Bank | 28% | 6% | 6% | 56% | 6% |
| Community or Savings Bank | 37% | 8% | 17% | 25% | 13% |
| Credit Union | 26% | 18% | 19% | 16% | 22% |
| ACH Status | |||||
| RDFI only | 15% | 13% | 26% | 21% | 25% |
| Both ODFI and RDFI | 36% | 10% | 12% | 30% | 12% |
| Total | 32% | 10% | 14% | 30% | 15% |
When do you expect that your organization will be ready to process IAT payments?
| Institution Type | Prior to the March 20, 2009 effective date | In time for the March 20, 2009 effective date | We have concerns about being ready for the March 20, 2009 effective date |
|---|---|---|---|
| National Commercial Bank | 29% | 43% | 27% |
| Regional Commercial Bank | 14% | 49% | 37% |
| Community or Savings Bank | 35% | 60% | 5% |
| Credit Union | 34% | 55% | 11% |
| ACH Status | |||
| RDFI only | 21% | 63% | 16% |
| Both ODFI and RDFI | 33% | 53% | 15% |
| Total | 31% | 53% | 17% |
| Results may not equal 100% due to rounding | |||
