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Clearinghouse Association Gives Banks Six More Months to Comply with Reformatting Rule

By Matt Squire

Bank and credit unions have an additional six months to reformat how they process transactions as part of an effort to enforce government blacklists, the rule-making body for electronic payment systems said. The Herndon, Va.-based National Automated Clearinghouse Association (NACHA), which supervises the automated clearing house (ACH) electronic payment network, said in March that financial institutions must distinguish transactions received from outside of the United States as an international transaction. The new rule, which is intended to ease compliance with the U.S. Treasury Department's economic sanctions lists, also requires that payments have the Bank Secrecy Act's so-called "travel rule" information,...

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