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Articles

NACHA Proposes Registry to Manage Third-Party Risk

  • By Andrew Deichler
  • Published: 8/20/2015
nacha2NACHA may soon require originating depository financial institutions (ODFIs) to register their third-party senders.

With the role of third parties in the ACH network growing—both in terms of the value they can provide and the potential for greater risk—NACHA has proposed changes to the NACHA Operating Rules that would require ODFIs to report basic information about their third-party sender customers. Currently, there is very little information available about the scope of third-party participation in the network.

NACHA’s proposed third-party registry would help it better monitor trends and risks associated with third parties. The organization also sees it as a tool that would standardize how basic data is collected from third-party senders.

Magnus Carlsson, AFP's manager of treasury and payments, sees the registry as a positive move, especially considering the threats today’s businesses are facing. “In general it seems good to register third-party senders as a risk mitigation measure,” he said. “In the most recent AFP Payments Fraud and Control Survey, we saw a rise in payments fraud where third-parties have been the source.”

NACHA is seeking comment on the proposed changes from ACH Network participants, including corporates, banks, service providers, government entities, associations and other interested parties. Comments are due by October 9, 2015. A survey can be completed online here.
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