IAT TRUE/FALSE

Question 1

A Gateway means either an ACH Operator or a Participating Depository Financial Institution that acts as an Entry Point to or Exit Point from the U.S. for payment transactions. T/F ?

Answer 1

True

Question 2

An ACH Operator acting as a Gateway will accept Inbound IAT Entries that are ACH credits or debits.

Answer 2

False

Question 3

A Correspondent Bank is a Gateway that acts as an Entry Point to or Exit point from a foreign country.

Answer 3

False: an ACH Operator or participating DFI not Correspondent Bank

Question 4

A maximum of twelve Addenda Records may be transmitted with an IAT entry.

Answer 4

True (7 mandatory for travel rule info, 5 optional for Correspondent Bank info (2 max of optional can be used for remittance info) - 80 characters permitted per Addenda Record

Question 5

When sending a NOC in relation to an IAT entry, the seven mandatory Addenda Records will NOT be needed to process the NOC and will not be included.

Answer 5

True (must be included on return IAT+one additional Addenda Record containing return reason/original trace # etc.), but not required on NOC)

Question 6

The OFAC Screening Indicators in the IAT format are optional, single-character fields, found in the First IAT Addenda Record.

Answer 6

False: Found in the entry Detail Record not Addenda Record. First field for gateway, second field available for third party service provider. 0=no potential blocked parties. 1=potential match on SDN list

Question 7

The Transaction Type Code is found in the IAT Entry Detail Record.

Answer 7

False: Found in the First IAT Addenda Record, required 3 position field to identify reason for payment. Can use secondary SEC code.

Question 8

The use of Return Reason Codes R80-85 are restricted to Gateway use only.

Answer 8

True

Question 9

The Country Code as approved by the International Organization for Standardization (ISO) is a four-digit code.

Answer 9

False: 2 character alphabetic country code 3166 1-alpha 2-code list

Question 10

US Military Bases and Embassies, regardless of their location, are considered under U.S. jurisdiction, so the transactions are considered international.

Answer 10

False: domestic?

Question 11

A Gateway that discovers an OFAC hit in an IAT debit must identify the entry as suspect and forward it to the RDFI immediately.

Answer 11

False: advises RDFI to help identify highly suspect entries by putting a 0 to indicate no match and a 1 for potential SDN blocked party match in the OFAC Screening indicator located within the entry Detail Record. To be used only as reference and not final decision by RDFI

Question 12

The IAT SEC Code may be used for ACH transactions to consumer or corporate accounts.

Answer 12

True

Question 13

The OFAC Screening Indicator Field provides the RDFI with the final determining factor regarding OFAC compliance.

Answer 13

False: advises RDFI by putting a 0 to indicate no match and a 1 for potential SDN blocked party match in the OFAC Screening indicator located within the entry Detail Record. To be used only as REFERENCE and not final decision by RDFI

Question 14

A DFI is excused from its compliance with specific obligation under the NACHA rules only when processing of an IAT entry would cause the DFI to be in violation of US law.

Answer 14

True: US LAWS & OFAC MATTERS OF NATIONAL SECURITY TRUMP NACHA RULES

Question 15

A “blocked party” on the OFAC list means that countries outside of the US territories have blocked these entries.

Answer 15

False: specially designated nationals (SDN) list is US office of foreign asset control (OFAC) maintained

Question 16

An IAT entry will be processed as a Same Day entry if the Effective Entry date is stale or invalid.

Answer 16

False: same day processing is not available for international ACHs