There have been recent changes to the payment system rules for all direct deposit transactions (payroll, relocation, travel and meal reimbursements) by the National Automated Clearing House Association (NAACHA) that will ensure full compliance with existing Office of Foreign Assets Control (OFAC) regulations. The International ACH Transaction (IAT) rules now require employers and vendors who administer direct deposit transactions to notify recipients of these new rules.
Employees and students receiving funds from Georgia Tech via direct deposit at a U.S. bank and forwarding the entire amount of the transaction to a bank outside of the U.S. will now need to notify Georgia Tech. Effective September, 18, 2009, individuals can advise the Institute by sending an email to hr.ask@ohr.gatech.edu. The new rules that the Institute must abide by will not impact an individual's pay or reimbursements.
The new rules from IAT were necessary to align with federal agency requirements and compliance obligations. In the current environment, many U.S. financial institutions are receiving international payments that cannot be properly identified. These unidentifiable payments enter the U.S. through correspondent banking relationships and are often difficult to trace or accurately process as international payments. The new IAT regulations support the end of anonymity and promote traceability of international electronic payments.
For More Information
For information regarding International ACH Transactions, visit http://www.nacha.org/IAT_industry_information/.