WASHINGTON (6/4/12)--NACHA-The Electronic Payments Association has issued a new proposal that would improve the security and integrity of some forms of automated clearing house (ACH) data, and the Credit Union National Association (CUNA) has asked credit unions to weigh in on the proposal in a new comment call.
NACHA's ACH security framework proposal would require credit unions and other financial institutions and groups that take part in ACH transactions to protect the confidentiality and integrity of certain sensitive consumer information, and to prevent third parties from accessing that information.
Credit unions and others that handle ACH data also would need to verify, as part of their yearly ACH Rules Compliance Audits, that they have established, implemented, and updated data security policies, procedures and systems to comply with the proposed security requirements under the NACHA proposal.
The proposal would require originating depository financial institutions (ODFI) to verify the identity of all ACH transaction originators and third-party senders, regardless of the manner in which the origination agreement was executed. Currently, this ODFI verification requirement only applies to originators or third-party senders that enter into an origination agreement via an unsecured electronic network.
The proposed NACHA rule changes are scheduled to become effective on Sept. 20, 2013.
In the comment call, CUNA asks credit unions to describe how the NACHA proposal could impact their risk management and ACH compliance procedures.
Credit unions can also comment on the proposed compliance date and how the rules could create new compliance costs.
NACHA will accept comments until June 22. Credit unions should forward their comments to CUNA by June 11.
For the full comment call, use the resource link.