Nacha Rule – Third-Party Sender (TPS) Roles and Responsibilities - What to Know

Overview:

In 2022, Nacha implemented significant updates to its Operating Rules to enhance clarity around the roles and responsibilities of Third-Party Senders (TPSs) and introduce the concept of "nested" TPSs within the ACH network. These updates were designed to explicitly delineate the operational frameworks for TPSs, emphasizing the importance of conducting thorough risk assessments and establishing robust risk management programs. With these rules becoming effective on September 30, 2022, and a six-month grace period concluding on March 31, 2023, the landscape for ACH transaction compliance has evolved.

As the calendar turns to 2024, it remains paramount for entities engaged in ACH transactions to adhere to the established Third-Party Sender Rules from 2022. While Nacha has not announced additional amendments targeting TPS roles and responsibilities for 2023 or 2024 up to February, the organization's ongoing rulemaking efforts suggest the potential for future changes that could impact the ACH network. It's crucial for organizations to stay abreast of such developments and regularly revisit their compliance strategies to align with the current regulatory framework.

This session, spanning 90 minutes, aims to deliver a comprehensive exploration of the Third-Party Sender roles and responsibilities, dissecting the specifics of the rules that benefited from a grace period and examining their continuing influence on compliance practices into 2024. Attendees will depart with a deepened understanding of how to sustain a compliant and secure environment for ACH transactions amidst the evolving regulatory landscape, armed with insights into best practices that facilitate ongoing adherence to Nacha's requirements."

Areas covered during the session:

Key points surrounding TPS Roles and Responsibilities and what it means to the participants in the ACH Network will be detailed. In this session, the trainer will:

• Define a Third-Party Sender (TPS)
• Define a “nested” Third-Party Sender (TPS)
• List details of agreement requirements between which parties and why this is necessary for compliance
• Explain current TPS agreements in place and is re-papering required, guidance for moving forward
• Identify an ACH Risk Assessment and its purpose
• Outline who needs to do the ACH Risk Assessment based on this NEW Rule
• Detail certain aspects of the Rule that have a 6-month grace period

Why you should attend?

Navigating the complexities of Nacha's Operating Rules, especially concerning Third-Party Senders and nested TPSs, is crucial for ensuring compliance within the ACH network. The significant updates introduced in 2022, along with the grace period that concluded in March 2023, have reshaped the compliance landscape for entities involved in ACH transactions. This webinar is pivotal for those seeking to deepen their understanding of these changes, clarify their roles and responsibilities, and strategize for future-proof compliance.

In this 90-minute session, we'll dissect the intricate details of the 2022 rule updates, focusing on how they continue to influence ACH transaction compliance into 2024. With the regulatory environment constantly evolving, staying informed and prepared for potential future changes is essential.

Attendees will gain invaluable insights into conducting effective risk assessments, establishing robust risk management programs, and ensuring that their operational frameworks remain in full alignment with Nacha's current and forthcoming requirements.

Who will benefit?

• Banking and Financial Services Professionals
• Risk Management Officers
• Compliance Officers and Legal Advisors
• Third-Party Senders (TPS)
• ACH Operations Managers
• Financial Technology (FinTech) Professionals
• Audit and Assurance Professionals
• Treasurers
• Chief Financial Officers (CFOs)
• Payment Processors and Payment Solution Providers
• Financial Analysts
• Corporate Controllers
• Regulatory Affairs Specialists