Effective January 1, 2021, the Enforcement Rule is intended to deter and prevent activity that can cause significant harm to banks and the ACH Network.
The Enforcement Rule:
  1. Defines an egregious violation as a willful or reckless action by a Participating DFI, Originator, Third-Party Service Provider, or Third-Party Sender, and involving at least 500 Entries, or involving multiple Entries in the aggregate amount of at least $500K.
  2. Allows the ACH Rules Enforcement Panel to judge whether a violation is egregious and to classify an Egregious Violation as a Class 2 or 3 Rules violation.
  3. Authorizes Nacha to report Class 3 Rules violations to the ACH Operators and industry regulators.
CCI suggests Participating DFIs consider updating and educating their customers on the changes to and potential impacts of the enforcement process.
Sincerely,
Sarah Smith, CRCM, CAFP