General Rules Flashcards
A Participating DFI must comply with NACHA rules and Warrants that it is. ______ ________ to comply with all applicable requirements of the rules
Legally Able
How often must a participating DFI conduct an audit of its compliance with the rules
Annually, prior to December 31st
The compliance audit must be performed under the instruction of.. (4)
Audit Committee
Audit Manager
Senior Officer
Independent External Examiner or Auditor
How long must a DFI, TPSP, TPS retain proof of audit?
6 Years
Upon the Receipt of NACHAs request, the DFI must provide proof of audit(s) within ____
10 banking days
Failure to provide proof of a DFI, TPSP or TPS annual audit may be considered
Class 2 Rules Violation
In Regards to Risk Assessment, a DFI and TPS must Complete a risk assessment of their ACH activities and (2)
- Implement risk management program on the basis of such an assessment
- Comply with all regulator requirements with respect to the Risk Assessment and Program
A DFI must retain record of each entry for a period of ___
6 Years
Each non-consumer originator, DFI, TPSP, and TPS must establish, implement and update as appropriate P and P, and systems with respect to __(1)____, ____(2)______, and ______(3)____ of ACH Entries
Processing
Initiation
Storage
Three General Security Requirements of DFI, Non Consumer Originator, TPSP, TPS, relating to Protected Information
- Protect the confidentiality and integrity until its destruction,
- Protect against anticipated threats to the security or integrity of protected information
- Protect against Unauthorized Use that can result in substantial harm to a natural person
Non-Consumer Originators, TPSP, and TPS, who’s ACH volume exceeds 2 million annually, must Protect DFI account numbers used for the initiation of entries by__(1)_____, prior to ________(2)________
rendering them unreadable when stored electronically
By June 30th of the following year
An FI must register contact information for departments responsible for (2)
ACH Operations
Fraud and/or Risk Management
What contact information for departments responsible for ACH Operations and Fraud Management must an FI Register with NACHA?
Name, Title, Email, Phone for a primary and secondary contact persons, or
General Department Contact Information (email and phone number that will be answered during business hours)
ODFI Risk Management, Fill in the Blank:
An ODFI must perform due diligence with respect to an originator or TPS, sufficient to form a reasonable belief that ____
The originator and TPS have the capacity to perform its obligations in conformance with the rules
In addition to performing due diligence on an originator/TPS , on ODFI must also (3)
Assess the nature of the ACH activity and the risk it presents
Establish, implement and periodically review the exposure limit
Establish procedures to: (a) Monitor Exposure limits and returns over across a period of multiple days (b) enforce exposure limits and origination restrictions
An originator must provide each Receiver with an electronic or hard copy of the receivers authorization for all debit entries to be initiated to a ___(1)___ account
Consumer
Which ACH Paricipant Warrants the Following?
- Entry complies with the rules
- Entry is not originated on behalf of a suspended Originator/Third Party Sender
- The Entry Contains Required Information
- Credit Entry is Timely
- Debit Entry Satisfies an Obligation, Corrects an Error, Reclaims an amount received after death
ODFI
After sending a Pre-notification Entry, when can the Originator initiate subsequent entries?
The third banking day following pre-note settlement date
(Provided there has been no NOC or Return received for the pre-note)
What are the requirements to initiate a Micro-Entry?
The Credit must not exceed $1.00
One or more debit must not exceed the credit amount
The Company Entry Description must be ACCTVERIFY
Settlement for Debit Micro Entries must be originated simultaneously
After initiating a Micro-Entry
When can the Originator transmit subsequent entries?
As soon as the originators process for verifying the amounts has been completed.
What are the requirements for initiating a Reversal File?
A corrected file must be initiated simultaneously for an erroneous file
Must be transmitted within 5 Banking days from original file’s settlement
Must be transmitted within 24hr of learning of the erroneous file
Who can Transmit Reversal Files?
An ODFI, or ACH Operator
Who can transmit a Reversal Entry?
ODFI
ACH Operator
Originator
Third Party Sender
What are the requirements to transmit a Reversal Entry?
- Must be transmitted within 5 banking days of the erroneous entry’s settlement date
- Originator must make a reasonable attempt to notify the Receiver of the error - prior to reversal entry settlement
- The word REVERSAL must be included in Company Entry Description
- Name of the Originator, Amount and SEC code must remain unchanged