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Open Solutions The Complete Banking Solutions: DNA Version 2.1
The Complete Banking Solution: DNA is built on a powerful, centralized Oracle relational database designed to be an open architecture application, creating the flexibility necessary for running a service-oriented financial institution. By capitalizing on the strength of Open Solutions’ unique universal data model and .NET design, the platform helps community banks streamline both front- and back-office processes and creates a centralized view of customers, employees and business partners.
Background:
Effective September 18, 2009, all international transactions conducted within the ACH network are required to use the IAT Standard Entry Class code. This new rule applies to all ACH participants and simplifies the process of identifying international ACH transactions. IAT entries include specific data elements defined by the Bank Secrecy Act’s “Travel Rule.”
The Corporate Cross-Border Payment and Personal Cross-Border Payment Standard Entry Class codes currently used for cross-border transactions were discontinued by NACHA on March 20, 2009. PBR and CBR inbound return transactions are allowed for six months after March 20, 2009, but financial institutions using PBR and CBR should not expect returns unless the transactions associated with these codes originated through FedACH™ International.
To use the new IAT rules, financial institutions must review all remittance data in IAT return transactions for OFAC compliance. NACHA provides a number of tools to assist institutions—and their originators—in fulfilling these IAT obligations. It is strongly recommend that institutions review the information on NACHA’s Web site regarding IAT transactions and associated OFAC compliance obligations.
IAT Functionality:
In accordance with NACHA regulations regarding IAT processing, the TCBS: DNA 2.1 domestic ACH application was enhanced in a number of ways to support processing IATs. New transactions and modified File Loader capabilities identify incoming IAT transactions and load the entries in the File Warehouse with record types recognized by NACHA. A new program that supports Office of Foreign Assets Control compliance evaluates the IAT entries to determine whether each transaction requires additional screening. If needed, screening is performed through OFAC functions integrated in the ACH application or through third party OFAC processing. The posting function allows institutions to review, research, or verify detailed transaction information and assign appropriate status codes.
Additional options for applying hold status to IAT transactions are available through a modified management hold process. The product also includes multiple functions for processing pending and returned IAT transactions. A number of reporting options are available through new and revised reports for reviewing daily and historical IAT activities.
TCBS: DNA 2.1 warrants an Innovative Solutions award because:
- By enhancing TCBS: DNA’s ACH application, financial institutions can process IATs in accordance with NACHA regulations that will soon take effect.
- This enhancement to TCBS: DNA illustrates Open Solutions’ commitment to providing a core platform for the future. Enhancements to its ACH application enable institutions to easily process international ACH transactions, which will increasingly become important.
Open Solutions Inc.
www.opensolutions.com