Navigating the Maze: Explore UMACHA's Compliance Services

Published on August 26, 2024

AUTHOR

Jamie Herbert, AAP, APRP, NCP
Director of Compliance Services

Do you occasionally feel overwhelmed by ever-changing regulations, revisions to the Nacha Operating Rules, and new guidance being released by regulators? It can be a lot of work to stay on top of the changes that are relevant to your organization. At UMACHA, we strive to help create peace of mind by sharing knowledge, and oftentimes this is done through the compliance services we offer.

While ACH is at the core of what we do, UMACHA provides compliance solutions for so much more. Take a moment to learn more about what our experienced compliance team can offer!

ACH-Related Services
Services Offered:

Audits for Financial Institutions
Audits for Third-Party Senders, including Nested Third-Party Senders
Audits for Third-Party Service Providers, including Sending/Receiving Points
Risk Assessments for Financial Institutions
Risk Assessments for Third-Party Senders, including Nested Third-Party Senders
Risk Assessments for Third-Party Service Providers, including Sending/Receiving Points

The Nacha Operating Rules require that all financial institutions, Third-Party Senders (including Nested Third-Party Senders), and Third-Party Service Providers that process Entries for a financial institution or Third-Party Sender conduct an annual audit of compliance with the Nacha Operating Rules no later than December 31 each year.

Additionally, the Nacha Operating Rules require financial institutions and Third-Party Senders, including Nested Third-Party Senders, to conduct an assessment of the risks associated with their ACH activities (commonly referred to as an ACH Risk Assessment).

Our compliance services team conducts hundreds of ACH services each year, and we can help pinpoint areas of non-compliance and educate your staff on sound business practices that can help reduce your organization’s risk.

Request a no-obligation quote for ACH-related compliance services.

Remote Deposit Capture Services
Service Offered:

Remote Deposit Capture Risk Assessment

Remote Deposit Capture (“RDC”) is often thought of as a product, but the FFIEC refers to RDC as a deposit transaction delivery system. RDC allows a financial institution to receive digital information about deposits from remote locations, including the financial institution’s branches, ATMs, domestic and foreign correspondents, or locations owned or controlled by commercial clients (e.g. businesses with physical scanners) or retail customers (e.g. via mobile deposit) of the financial institution.

The FFIEC calls out the importance of ensuring senior management has identified the legal, compliance, reputation, and operational risks associated with Remote Deposit Capture. If you have never conducted a formal RDC Risk Assessment, or if it’s been a while since your risk assessment was reviewed and updated, now is a great time to bring in a fresh set of eyes and schedule a formal risk assessment.

Request a no-obligation quote for RDC-related compliance services.

Wire Transfer Services
Service Offered:

Wire Transfer Risk Assessment and Audit of Internal Controls

Payment over Fedwire is final and irrevocable when the Federal Reserve Bank either credits the amount of the payment order to the receiving financial institution’s Federal Reserve Bank master account or sends notice to the receiving financial institution, whichever is earlier. Although there is no settlement risk to Fedwire participants, you could be exposed to other risks, such as errors, omissions, and fraud.

The FFIEC states that, "financial institutions need to have sound policies, procedures, and processes to manage the BSA/AML risks of its funds transfer activities. Such policies may encompass more than regulatory recordkeeping minimums and be expanded to cover OFAC obligations. Funds transfer policies, procedures, and processes should address all foreign correspondent banking activities, including transactions in which U.S. branches and agencies of foreign banks are intermediaries for their head offices."

Our compliance services team can help your financial institution review its current processes and procedures to identify areas of elevated risk and ensure that appropriate internal controls are in place and being adhered to.

Request a no-obligation quote for Wire transfer-related compliance services.

Additional Compliance Resources
If you have staff resources within your organization, but you need some additional guidance in completing your payments-related compliance services, we offer several resources to help:

ACH Audit Guide – Designed to assist a financial institution in conducting its own ACH Audit
ACH Risk Assessment Guide – Designed to assist a financial institution in conducting its own ACH Risk Assessment
Remote Deposit Capture Risk Assessment Guide – Designed to assist a financial institution in conducting its own RDC Risk Assessment
Third-Party Sender ACH Audit Guide – Designed to assist a Third-Party Sender in conducting its own ACH Audit
Third-Party Sender ACH Risk Assessment Guide – Designed to assist a Third-Party Sender in conducting its own ACH Risk Assessment

We also offer the following on-demand webinars:

ACH Auditing Made Simple (Two-Part Webinar Series) – This two-part webinar series is hosted by our compliance services staff and walks through various considerations for conducting an ACH Audit.
- As a bonus, this webinar also includes the ACH Audit Guide at no additional charge!
How to Conduct a Third-Party Sender Audit – This 60-minute webinar, led by the compliance services team, walks through audit requirements, various considerations, and Rules that apply specifically to Third-Party Senders.
Conducting a Third-Party Sender Risk Assessment – This 60-minute webinar, led by the compliance services team, covers Rules and risk-based considerations that apply specifically to Third-Party Senders.

Meet Our Compliance Services Team

(Pictured from left to right: Nate Itzen, Jennifer Miller, Sara Hentges, Andy Benhardus, Jamie Herbert, Kimberly Stachak, and Ross Luecke [not pictured].)

Remember you can always reach out to our Member Hotline by sending an email to info@umacha.org or giving us a call at (763) 549-7000. There’s nothing we love more than diving into a question or issue and helping bring clarity by providing guidance.

Stay connected with Jamie Herbert and UMACHA on LinkedIn!