Laru’s ACH Risk and Compliance Products Support International ACH Transactions

FOLSOM, CA. — (BUSINESS WIRE) — Laru, a provider of ACH risk and compliance management software applications for financial institutions, announced that its ACH FileFox Pro™ and ACH Clarity™ risk and compliance software products support the newest Standard Entry Class (SEC) Code, IAT, used to identify international payments made via the ACH Network. The National Automated Clearing House Association (NACHA) adds the SEC Code to the NACHA Operating Rules to enable financial institutions to easily identify all international payments flowing through the ACH Network and all parties involved in the transactions.

On September 18, NACHA will require the use of the IAT SEC code for each international item settled through the ACH network. The addition of the IAT entry code will assist originating depository financial institutions (ODFIs) and receiving depository financial institutions (RDFIs) in identifying international transactions, which sometimes appear as domestic transactions and require greater scrutiny. The IAT code ensures that financial institutions comply with the requirements of the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), further decreasing risks when handling international transactions.

Laru’s ACH FileFox Pro software helps financial institution’s operations staff and auditors in researching ACH file contents and resolving ACH transaction issues. The product provides direct access to ACH files, including the ability to verify international entries (IATs). FileFox Pro can diagnose many kinds of errors, such as missing or incorrect values. Additionally, the enhancements enable a financial institution to generate test data containing international transactions. This data can also be used to develop, test or verify IAT features in other systems within the institution.

Laru’s ACH Clarity product, which runs as a complementary platform to an institution’s core ACH processing system, supports the new international SEC code. ACH Clarity monitors ACH transactions and provides ACH operations with the ability to research, report and manage risk exposure from originator relationships, as well as audit the ACH pipeline. The solution generates customized alerts and reports that identify fraudulent ACH transactions and risk anomalies.

  • Posted: April 30, 2009