FedACH^® Services

Automated IAT tools deliver

September 18 will mark the one-year anniversary of the implementation of the International ACH Transaction (IAT) Standard Entry Class (SEC) code. Many depository financial institutions have taken advantage of the tools offered by FedACH Services to help streamline processing of IAT items through added efficiency and convenience. Is your organization leveraging the available tools?

IAT Output File Sort delivers efficiency

The IAT Output File Sort Service enables receiving depository financial institutions (RDFIs) and receiving points to receive their IAT forward items in a separate file from domestic automated clearing house (ACH) items. The IAT receipt file includes all IAT items destined for your institution, whether items came from FedACH Services or any other originating depository financial institution (ODFI) acting as a Gateway Operator¹. This allows receiving points and RDFIs to quickly and easily identify IAT items so necessary due diligence — i.e., Office of Foreign Assets Control (OFAC) (Off-site Link) screening — can be performed more efficiently. By eliminating the need to examine the entire output file for IAT items, you can realize greater processing efficiencies, saving time and resources during day-to-day payments processing.

IAT Output File Sort delivers convenience

The IAT Output File Sort Service is convenient and easy to use. File availability coincides with FedACH standard processing, and IAT files may be picked up during each FedACH distribution window, eliminating the need for separate handling by your staff. The process for IAT file downloads also mirrors the process used for other FedACH items: IAT files are available for download via the FedLine Advantage^® access solution for 10 business days and are clearly identified to allow for quick processing. You save time training staff to process IAT items, because the IAT Output File Sort Service enables you to leverage processes you already have in place for handling domestic items.

Depository financial institutions that are receiving points and service providers may sign up for the IAT Output File Sort Service by completing the applicable table in Part 3 of the FedACH Participation Agreement. Additional sign up information (PDF) is also available, along with FAQs (PDF) pertaining to this valuable service. Institutions that are not receiving points should work with their service providers to sign up for the service.

More tools to meet your needs

The IAT Output File Sort Service is only one of two tools available to help RDFIs process IAT items. The IAT Report, available via the FedEDI^® Plus Service, displays IAT items at both the RDFI and corporate customer levels. This report helps RDFIs better respond to customer inquiries related to IAT items, and it can be downloaded manually or scheduled for daily automatic delivery. Reports are available in commonly used formats (PDF, TXT, HTML) and include OFAC screening results at the top to help identify suspect IAT items. To sign up for the FedEDI Plus Service, please complete part 6D of the FedACH Participation Agreement.

If you are interested in receiving your IAT returns as a separate file, please contact your FedACH Sales Specialist to discuss available options. For more information about the tools available to help streamline your IAT item processing, please visit the FedACH Services online resources.

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