FedACH® International ACH Transaction (IAT) Overview

International ACH Transaction (IAT)

International ACH Transaction: An ACH entry that is part of a payment transaction involving a financial agency’sAn institution authorized by law to accept deposits, issue money orders or transfer funds. office that is not located in the territorial jurisdiction of the United States.

Effective September 18, 2009, all international transactions made via the ACH Network will be required to use the IAT SEC code. This new rule applies to all ACH participants and will simplify the process of identifying international transactions by requiring that IAT entries include specific data elements defined by the Bank Secrecy Act’s (BSA) “Travel Rule.”  This will make it easier for depository financial institutions to comply with U.S. laws, such as requirements by the Office of Foreign Assets Control (OFAC). The new rule will also define new parties to the IAT entry and re-define gateway operator obligations. Ultimately, IAT will complement other network formats and enhance processing efficiencies for all ACH participants.

Are you ready to learn more? If you have already reviewed the changes that will come with IAT, please choose the description that best fits your organization to learn how IAT will impact your institution:

Training Resources

To learn more, listen below to a three part presentation on "Understanding New Requirements in the ACH Network: International ACH Transaction IAT," presented by Elena Whisler and John Morris from the Retail Payments Office at the Federal Reserve Bank of Atlanta. The information is provided in an audio format with corresponding slides for each section. To help you follow along, we recommend you first download and save the presentation slides to your computer prior to launching the audio format.

Additional Resources

Do you still have questions? Please review the Frequently Asked Questions document for commonly asked questions about IAT. You may also contact us to submit a question not found on the FAQs and will receive an email response regarding your inquiry.

To receive the latest news about FedACH Services and the IAT Resource Center sign up for Email Alert Notification and make sure to select FedACH Services.

For more information about FedACH International Services or IAT, visit the service offerings pages , contact your FedACH Sales Specialist or contact us now and receive an email response to your immediate questions.

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