Home/Federal/Federal Register/2021-28048

Rule2021-28048

Federal Government Participation in the Automated Clearing House

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published

January 3, 2022

Effective

February 2, 2022

Issuing agencies

Treasury DepartmentFiscal Service

Abstract

The Department of the Treasury, Bureau of the Fiscal Service (Fiscal Service) is adopting the changes we proposed in an August 2021 notice of proposed rulemaking for our regulation governing the use of the Automated Clearing House (ACH) Network. Consistent with past practice, our regulation adopts, with some exceptions, the Nacha Operating Rules & Operating Guidelines (Operating Rules & Guidelines) developed and published by Nacha as the rules governing the use of the ACH Network by Federal agencies. We are issuing this final rule to address changes that Nacha has made since its publication of the 2019 Operating Rules & Guidelines. These changes include amendments set forth in the 2020 and 2021 Operating Rules & Guidelines, including supplement #1-2021.

Full Text

<html>
<head>
<title>Federal Register, Volume 87 Issue 1 (Monday, January 3, 2022)</title>
</head>
<body><pre>
[Federal Register Volume 87, Number 1 (Monday, January 3, 2022)]
[Rules and Regulations]
[Pages 42-47]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-28048]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Part 210

Docket No. FISCAL-2021-0002
RIN 1530-AA26

Federal Government Participation in the Automated Clearing House

AGENCY: Fiscal Service, Bureau of the Fiscal Service, Treasury.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Department of the Treasury, Bureau of the Fiscal Service
(Fiscal Service) is adopting the changes we proposed in an August 2021
notice of proposed rulemaking for our regulation governing the use of
the Automated Clearing House (ACH) Network. Consistent with past
practice, our regulation adopts, with some exceptions, the Nacha
Operating Rules & Operating Guidelines (Operating Rules & Guidelines)
developed and published by Nacha as the rules governing the use of the
ACH Network by Federal agencies. We are issuing this final rule to
address changes that Nacha has made since its publication of the 2019
Operating Rules & Guidelines. These changes include amendments set
forth in the 2020 and 2021 Operating Rules & Guidelines, including
supplement #1-2021.

DATES: Effective February 2, 2022. The incorporation by reference of
certain publications listed in the rule is approved by the Director of
the Federal Register as of February 2, 2022.

ADDRESSES: You can download this final rule at the following website:
<a href="http://fiscal.treasury.gov/ach/">fiscal.treasury.gov/ach/</a>.

FOR FURTHER INFORMATION CONTACT: Ian Macoy, Director of Settlement
Services, at (202) 874-6835 or <a href="/cdn-cgi/l/email-protection#7c151d1252111d1f13053c1a150f1f1d1052080e191d0f090e05521b130a">[email&#160;protected]</a>; or Frank
J. Supik, Senior Counsel, at <a href="/cdn-cgi/l/email-protection#89effbe8e7e2a7fafcf9e0e2c9efe0faeae8e5a7fdfbece8fafcfbf0a7eee6ff">[email&#160;protected]</a>.

SUPPLEMENTARY INFORMATION:

I. Background

On August 18, 2021, the Fiscal Service published a Notice of
Proposed Rulemaking at 86 FR 46631 that proposed amendments to title 31
CFR part 210 (part 210). Part 210 governs the use of the ACH Network by
Federal agencies.
The ACH Network is a nationwide electronic fund transfer system
that provides for the inter-bank clearing of electronic credit and
debit transactions and for the exchange of payment-related information
among participating financial institutions.
The ACH Network facilitates payment transactions between several
participants. These participants include the:
<bullet> Originator: A company or individual that agrees to
initiate an ACH entry according to an arrangement with a Receiver.
<bullet> Originating Depository Financial Institution (ODFI): An
institution that receives the payment instruction from the Originator
and forwards the ACH entry to the ACH Operator.
<bullet> ACH Operator: A central clearing facility that receives
entries from ODFIs, distributes the entries to appropriate Receiving
Depository Financial Institutions, and performs settlement functions
for the financial institutions.
<bullet> Receiving Depository Financial Institution (RDFI): An
institution that receives entries from the ACH Operator and posts them
to the account of its depositors (Receivers).
<bullet> Receiver: An organization or consumer that has authorized
an Originator to initiate an ACH entry to the Receiver's account with
the RDFI.
<bullet> Third-Party Service Provider: An entity other than the
Originator, ODFI, or RDFI that performs any functions on behalf of the
Originator, ODFI, or RDFI in connection with processing ACH entries.
These functions may include, for example, creating ACH files on behalf
of an Originator or ODFI, or acting as a sending point or receiving
point on behalf of an ODFI or RDFI.
Rights and obligations among participants in the ACH Network are
generally governed by Nacha's Operating Rules & Guidelines. The
Operating Rules & Guidelines establish standards for sending and
receiving ACH entries, provide specifications and formatting
requirements for the electronic transmission of transaction
information, set forth the rights and obligations of the entities
listed above when transmitting, receiving, or returning ACH entries,
and cover other related matters. The Operating Rules & Guidelines also
provide guidance regarding best practices to ACH Network participants.
There is an industry consensus that the Operating Rules & Guidelines
provide a uniform set of standards for ACH transactions and that these
standards enable efficient transaction processing.
Part 210 incorporates the Operating Rules & Guidelines by
reference, with certain exceptions. The Operating Rules & Guidelines
govern the use of the ACH Network by financial institutions and other
parties but must be incorporated by reference in part 210 to apply to
the Federal Government's use of the ACH Network. From time to time, the
Fiscal

[[Page 43]]

Service amends part 210 to address changes that Nacha periodically
makes to the Operating Rules & Guidelines or to revise the regulation
as otherwise appropriate. The Federal Government generally adopts
changes to the Operating Rules & Guidelines unless the changes address
enforcement and compliance of the Operating Rules & Guidelines, would
adversely impact government operations, or are irrelevant to Federal
agency participation in the ACH Network.
Currently, part 210 incorporates the 2019 Operating Rules &
Guidelines, subject to certain exceptions. Nacha has adopted several
changes since the publication of the 2019 Operating Rules & Guidelines,
as reflected in the 2021 Operating Rules & Guidelines and supplements
thereto. The Fiscal Service is adopting most of these changes,
consistent with the amendments proposed in the NPRM.

II. Public Comment and Fiscal Service Response

The Fiscal Service sought public comment on the proposed rule to
assist the agency in giving full consideration to the matters discussed
in the NPRM. We received one substantive comment, which was submitted
by Nacha and co-signed by nine Payments Association members (Nacha
Comment Letter).
The Nacha Comment Letter expressed support for the Fiscal Service's
proposal to adopt the majority of the Operating Rules & Guidelines. The
Nacha Comment Letter expressed particular support for the Fiscal
Service's adoption of the revised Same Day ACH transaction dollar
limit. In light of the NPRM's proposal to not adopt the Nacha Operating
Rules & Guidelines' contact registry provisions, the Nacha Comment
Letter suggested that the Fiscal Service consider alternative means of
providing contact information to industry participants. The transaction
dollar limit and contact registry are discussed below.
In addition, the Nacha Comment Letter suggested that the Fiscal
Service explore methods of adopting changes to the Nacha Operating
Rules & Guidelines. The Fiscal Service will consider alternatives, but
the procedures for incorporating the Nacha Operating Rules & Guidelines
into the Code of Federal Regulations by reference are established by
the Office of the Federal Register. These rules require, among other
steps, that the Fiscal Service conduct a rulemaking procedure.

III. Summary of Final Rule

During the last amendment to part 210, the Fiscal Service adopted,
with some exceptions, Nacha's 2019 Operating Rules & Guidelines.
Subsequently, Nacha published two versions of the Operating Rules &
Guidelines, the 2020 Operating Rules & Guidelines and the 2021
Operating Rules & Guidelines. The relevant 2020 changes are included in
the 2021 version that we are incorporating by reference. Below, we
outline the major changes that were published in these updates.

A. 2020 Operating Rules & Guidelines Changes

The 2020 Operating Rules & Guidelines made several changes to the
Operating Rules and Guidelines. These changes included raising the Same
Day ACH dollar limit, differentiating the codes associated with certain
return transactions, modifying data security requirements, clarifying
fraud detection standards for WEB Debit transactions, and adding a new
Same Day ACH processing window.
Same Day ACH per Transaction Dollar Limit Increase
Nacha approved a rule change to update the Same Day ACH per
transaction dollar limit from $100,000 to $1,000,000.\1\ At
implementation, both Same Day ACH credits and Same Day ACH debits will
be eligible for Same Day ACH processing up to $1,000,000 per
transaction.
---------------------------------------------------------------------------

\1\ This rule change was published in Supplement #1-2021 to the
Nacha Operating Rules.
---------------------------------------------------------------------------

We are adopting this rule, effective March 18, 2022. Acceptance of
this rule will enable individuals and entities to make Same-Day ACH
payments of up to $1,000,000 to the Federal Government and will enable
Federal disbursements up to the same amount.
Differentiating Unauthorized Return Codes
The 2020 Operating Rules & Guidelines changed the usage of certain
Nacha ``Return Reason Codes,'' which afforded financial institutions
more insight into the reason why a transaction was returned.
Under the prior rules, Nacha used one Return Reason Code (the R10
code) as a catch-all to identify transactions that were returned for
several underlying return reasons, including some for which a valid
authorization existed. Under the revised Rule, Nacha re-purposed
another Return Reason Code (the R11 code) to allow ACH network
participants to more readily identify ACH transactions that are being
returned due to an error, even though an authorization exists for the
transaction (e.g., if the authorization is for a different amount and/
or date). The newly re-purposed code is used only to identify the
return of a debit transaction in which there is an error, but for which
there is an authorization.\2\
---------------------------------------------------------------------------

\2\ The 2021 Operating Rules & Guidelines implements a second
phase of this rule. This second phase is discussed below.
---------------------------------------------------------------------------

The Operating Rules & Guidelines will treat returned transactions
using either code (R10 and R11) as unauthorized. However, an Originator
will be permitted to correct the underlying error in an R11 return (if
possible). Subject to certain other requirements, the Originator may be
able to resubmit the underlying ACH transaction without obtaining a new
authorization.\3\
---------------------------------------------------------------------------

\3\ Some transaction errors, such as errors due to the failure
to provide certain notices or the failure to use an acceptable
``source document,'' cannot be corrected. In those cases, the
Originator will be required to submit a new ACH entry.
---------------------------------------------------------------------------

We are adopting this change. Doing so will allow the Fiscal Service
to remain consistent with industry practice, allowing for consistent
operation across the ACH network. Moreover, using the R11 return code
will provide greater insight into the reasons for the return of certain
transactions.
Supplemental Fraud Detection Standards for WEB Debits
The Fiscal Service previously adopted Nacha's updated fraud
detection standards for WEB debit transactions.\4\ The Fiscal Service
adopted this change with a delayed effective date of March 22, 2022.\5\
The updated rule clarifies that Nacha requirements for a ``commercially
reasonable fraudulent transaction detection system'' include the use of
account validation services for WEB debit transactions. We are adopting
the updated rule, which may help reduce ACH return transactions and the
incidence of fraudulent transactions affecting the Federal Government.
---------------------------------------------------------------------------

\4\ See 85 FR 15715 (Mar. 19, 2020).
\5\ Id.
---------------------------------------------------------------------------

B. 2021 Operating Rules & Guidelines Changes

The 2021 Operating Rules & Guidelines implemented several
additional changes beyond those in the 2020 Operating Rules &
Guidelines. These changes included, but are not limited to, clarifying
certain portions of the enforcement provisions of the Operating Rules &
Guidelines, implementing a new Same Day ACH

[[Page 44]]

processing window, implementing a second phase of Nacha's return code
rule, establishing a time limit on certain warranty claims, and
implementing Nacha's contact registry. As explained in more detail
below, we are not adopting the amendments to the enforcement and
contact registry provisions but are adopting the remaining changes.
Enforcement
The 2021 Operating Rules & Guidelines defines an ``egregious
violation'' within the context of rules enforcement.
We are not adopting this amendment. Under 31 CFR 210.2(d), the
enforcement provisions of the Operating Rules & Guidelines are
inapplicable to Federal agencies.
Differentiating Unauthorized Return Reasons
As discussed above, Nacha repurposed the R11 Return Reason code to
further differentiate between certain returned debit ACH transactions.
The 2021 Operating Rules & Guidelines implemented a second phase of
this rule change, which will apply Nacha's existing Unauthorized Entry
Fee to ACH debit entries that are returned with the newly repurposed
code. These transactions are associated with an authorization of a
debit transaction when there is an error or defect in the payment such
that the entry does not conform to the terms of the authorization.
The Fiscal Service is adopting this rule change. Adopting this
change maintains consistency with other ACH Network participants and
creates additional incentives to minimize the amount of unauthorized
(or incorrectly authorized) ACH transactions.
Limitation on Warranty Claims
Nacha's 2021 Operating Rules & Guidelines impose time limits on an
RDFI's ability to make a claim against an ODFI's authorization
warranty.
The Operating Rules & Guidelines require an ODFI to warrant that an
ACH entry has been properly authorized by the Receiver. Under the prior
rules, there was no time limit on the ODFI's warranties. Instead, these
limits were determined by state statutes of limitations, which may
vary.
The change sets forth different time periods, depending upon
whether the transaction affects consumer and non-consumer accounts.
This rule allows an RDFI to make a claim for one year from the
settlement date of an entry to a non-consumer account. In the case of
an entry to a consumer account, the RDFI may make a claim for two years
from the entry's Settlement Date. In addition, the RDFI can make a
claim for entries settling within 95 calendar days from the Settlement
Date of the first unauthorized debit to a consumer account.
The Fiscal Service is adopting this rule change.
Supplementing Data Security Requirements
Nacha previously expanded its Data Security Requirements rule,
which the Fiscal Service adopted,\6\ but in the 2021 Operating Rules &
Guidelines Nacha updated the effective date and expanded the existing
ACH Security Framework to explicitly require large, non-financial
institution Originators, Third-Party Service Providers, and Third-Party
Senders to protect account numbers used in the initiation of ACH
entries by rendering them unreadable when stored electronically.
---------------------------------------------------------------------------

\6\ See 85 FR 15715 (Mar. 19, 2020).
---------------------------------------------------------------------------

The Fiscal Service is adopting the updated rule, which will expand
existing security requirements and protect information associated with
ACH transactions.
ACH Contact Registry
In 2019, Nacha approved a rule creating an ACH contact registry.
Under this rule, all ACH financial institutions are required to
register contact information for their ACH operations and fraud and/or
risk management areas. Financial institutions may voluntarily register
contacts for additional personnel or departments at their discretion.
The contact information is available to other registered ACH
participating financial institutions, payments associations, ACH
Operators, and Nacha to use in the event of ACH-related system outages,
erroneous payments, duplicates, reversals, fraudulent payments and any
other use within scope, such as identifying the proper contact for
letters of indemnity. The contact information includes Routing and
Transit Numbers (RTNs).
Nacha is implementing the ACH Contact Registry rule in two phases.
Phase 1 became effective on July 1, 2020, the date on which the
registration portal was opened for ``Participating Depository Financial
Institutions'' to begin to submit and query contact information. Under
Phase 2, Nacha's enforcement authority for the Rule becomes effective.
We are not adopting this amendment. Although participation in the
registry can be expected to provide some benefits to the industry, all
Federal Government RTNs are controlled by Treasury through the Fiscal
Service. The Fiscal Service prohibits debit origination to all
Treasury-controlled ACH RTNs. To mitigate the risk of inappropriate use
of any Treasury RTNs, the Fiscal Service prohibits their publication.
Moreover, under 31 CFR 210.2(d), the enforcement provisions of the
Operating Rules & Guidelines are inapplicable to Federal agencies. The
Fiscal Service appreciates Nacha's suggestion that the Federal
Government consider alternative methods of making appropriate contact
information available to financial institutions and may do so in the
future.
Reversals
The 2021 Operating Rules & Guidelines also clarify the proper
circumstances under which an ACH entry may be reversed. The amendments
to the Operating Rules & Guidelines specifically state that the
initiation of reversing entries or files for any reason other than
those explicitly permissible under the Operating Rules & Guidelines is
prohibited and define non-exclusive examples of circumstances in which
the origination of reversals is improper.
The reversals rule also establishes additional formatting
requirements for reversals; limits the ability to modify the contents
of other fields in a reversing entry to allow changes only to the
extent necessary to facilitate proper processing of the reversal;
explicitly permits an RDFI to return an improper reversal; and expands
the permissible reasons for a Reversing Entry to include an error in
the effective entry date.
The Fiscal Service is adopting this rule, which will clarify the
circumstances under which entries can be reversed and assist in the
efficient processing of ACH transactions involving the Federal
Government.
Meaningful Modernization
The 2021 Operating Rules & Guidelines also contain five amendments
that Nacha characterizes as ``Meaningful Modernization.'' These five
amendments are designed to improve and simplify the ACH user experience
by facilitating the adoption of new technologies and channels for the
authorization and initiation of ACH payments; reducing barriers to the
use of the ACH Network; providing clarity and increasing consistency
around certain ACH authorization processes; and reducing certain
administrative burdens related to ACH authorizations.
Specifically, the five rules:

[[Page 45]]

<bullet> Explicitly define the use of standing authorizations for
consumer ACH debits;
<bullet> Define and allow for oral authorization of consumer ACH
debits beyond telephone calls;
<bullet> Clarify and provide greater consistency of ACH
authorization standards across payment initiation channels;
<bullet> Reduce the administrative burden of providing proof of
authorization; and
<bullet> Better facilitate the use of electronic and oral Written
Statements of Unauthorized Debit.
Standing Authorizations
The current authorization framework for consumer ACH debits
encompasses recurring and single payments. A single entry is a one-time
payment and can be between parties that have no previous relationship.
ACH Originators that have, or want to use, a different model for
ongoing commerce do not have specific rules for payments that are a
hybrid, falling somewhere in between recurring and single entries.
This rule change defines a ``Standing Authorization'' as an advance
authorization by a consumer of future debits at various intervals. The
consumer would initiate the future debits by additional actions, which
differs from the requirements for recurring ACH transactions. The rule
allows the use of different Standard Entry Class codes. By allowing
standing authorizations, Nacha will fill the gap between single and
recurring payments and enable businesses and consumers to make more
flexible payment arrangements for relationships that are ongoing in
nature.
The Fiscal Service is adopting this rule. The Fiscal Service
believes that the Standing Authorization rule may increase options for
initiating ACH transactions with the Federal Government. As a result,
agencies may be able to adopt new payment processes that better fit
their needs and the needs of their customers.
Oral Authorizations
The Oral Authorizations rule defines and allows ``Oral
Authorizations'' as a valid authorization method for consumer debits
distinct from a telephone call.
Under the rule, any Oral Authorization obtained via any channel
needs to meet defined requirements An Oral Authorization obtained over
the internet that is not a telephone call also needs to meet the risk
and security requirements that currently apply to Internet-Initiated/
Mobile (WEB) ACH entries. The rule will allow for Standing
Authorizations to be obtained orally. In addition, the rule will allow
for subsequent entries initiated under a Standing Authorization to be
initiated through voice commands, instructions, or affirmations.
The Fiscal Service is adopting this amendment. The Fiscal Service
believes that the Oral Authorization rule may increase options for
initiating efficient ACH transactions with the Federal Government.
Other Authorization Issues
The 2021 Operating Rules & Guidelines also include rule changes
grouped as ``Other Authorization Issues,'' which cover other
modifications and re-organizations of the general authorization rules
for clarity, flexibility, and consistency.
The rule re-organizes the general authorization rules to better
incorporate Standing Authorizations, Oral Authorizations, and other
changes. In addition, the amended rule explicitly states that
authorization of any credit entry to a consumer account and any entry
to a non-consumer account can be by any method allowed by law or
regulation. Only consumer debit authorizations require a writing that
is signed or similarly authenticated. The amended rule also requires
all authorizations to meet the standards of ``readily identifiable''
and ``clear and readily understandable terms,'' which aim to reduce the
incidence of erroneous transactions. Finally, the rule applies the
``minimum data element'' standards that currently are only stated in
the rules for Telephone-Initiated Entries to all consumer debit
authorizations.
The Fiscal Service is adopting these amendments, which will benefit
the Federal Government and those who participate in ACH transactions
with it.
Alternative to Proof of Authorization
The 2021 Operating Rules & Guidelines provide an ODFI and
Originator the option of accepting a return of a transaction in lieu of
providing a copy of an authorization. Previously, an Originator was
required to provide proof of authorization to its ODFI in such time
that the ODFI can respond to an RDFI's request for proof of an
authorization within ten banking days.
This change reduces an administrative burden on ODFIs and their
Originators by allowing them to choose their method of response. The
rule is intended to help reduce the costs and time needed to resolve
some exceptions in which proof of authorization is requested. However,
if the RDFI still needs proof of authorization, the ODFI and its
Originator must provide it within ten days of the RDFI's subsequent
request.
The Fiscal Service is adopting these amendments. The Fiscal Service
agrees that these rule amendments may make certain ACH transaction
processes more efficient. If the Federal Government determines that it
is inefficient to provide the requested proof of authorization, the new
rule will allow it to return the ACH instead of expending resources to
locate and transmit the information to the RDFI and Receiver.
Written Statement of Unauthorized Debit via Electronic or Oral Methods
The 2021 Operating Rules & Guidelines change the ``Written
Statement of Unauthorized Debit'' rule, which makes an RDFI responsible
for obtaining a consumer's Written Statement of Unauthorized Debit
(WSUD) prior to returning a debit as unauthorized. This change allows
for electronic or oral acceptance of WSUDs.
The rule reduces an administrative burden on RDFIs and their
customers. The changes emphasize that WSUDs may be obtained and signed
electronically, which could include the same methods permissible for
obtaining a consumer debit authorization.
The Fiscal Service is adopting these amendments, which may increase
the efficiency of ACH transactions involving the Federal Government by
allowing electronic records and signatures to be used for WSUDs,
expediting the processing of allegedly fraudulent electronic
transactions involving the Federal Government and other parties.
Minor Rules Topics
Nacha has passed other amendments that change several areas of the
Operating Rules & Guidelines to address minor issues or correct errata.
These changes have little-to-no impact on ACH participants and no
material impact on the Federal Government's participation in the ACH
network. Nacha's minor rule amendments became effective on various
dates, according to the date of the Nacha errata correction or other
message.
The Fiscal Service is adopting these minor rule amendments.

III. Section-by-Section Analysis

In order to incorporate in part 210 the Operating Rules &
Guidelines changes that we are accepting, we are replacing references
to the 2019 Rules & Guidelines with references to the 2021 Operating
Rules & Guidelines.

[[Page 46]]

210.2(a)

We are amending the reference to NACHA--The Electronic Payments
Association (NACHA) to simply refer to Nacha.

Sec. 210.2(d)

We are amending the definition of ``applicable ACH Rules'' at Sec.
210.2(d) by replacing the reference to the ``2019 NACHA Operating Rules
and Guidelines'' with a reference to the ``2021 Nacha Operating Rules &
Guidelines'' and Supplement #1-2021. In particular, Supplement #1-2021
will increase the Same Day ACH limit to $1 million, effective March 18,
2022. In addition, we are expanding the list of Operating Rules &
Guidelines that are not incorporated by reference to include the
Operating Rules & Guidelines governing the Participating DFI registry.

Sec. 210.3(b)

We are amending Sec. 210.3(b) by replacing the references to the
``2019 NACHA Operating Rules & Guidelines'' with references to
``Nacha's 2021 Operating Rules & Guidelines,'' including Supplement #1-
2021.

Sec. 210.6

We are amending Sec. 210.6(g) by replacing the reference to the
``2019 NACHA Operating Rules and Guidelines'' with a reference to the
``2021 Nacha Operating Rules & Guidelines,'' as amended through March
31, 2021.

IV. Incorporation by Reference

The 2021 Operating Rules & Guidelines, including Supplement #1-
2021, are incorporated by reference into part 210 with the approval of
the Director of the Federal Register under 5 U.S.C. 552(a) and 1 CFR
part 51. Office of Federal Register regulations require that agencies
discuss in the preamble of a final rule ways that the materials the
agency proposes to incorporate by reference are reasonably available to
interested parties or how it worked to make those materials reasonably
available to interested parties. In addition, the preamble of the final
rule must summarize the material. 1 CFR 51.5(a). In accordance with the
Office of the Federal Register's requirements, Supplementary
Information section I summarizes the Operating Rules & Guidelines and
section III summarizes the invidual provisions being adopted. Financial
institutions utilizing the ACH Network are bound by the Operating Rules
& Guidelines and have access to them in the course of their everyday
business. The Operating Rules & Guidelines are available as a bound
book or in online form from Nacha, 2550 Wasser Terrace, Suite 400,
Herndon, Virginia 20171, tel. 703-561-1100, <a href="/cdn-cgi/l/email-protection#90f9fef6ffd0fef1f3f8f1beffe2f7">[email&#160;protected]</a>.

V. Procedural Analysis

Regulatory Planning and Review

The final rule does not meet the criteria for a ``significant
regulatory action'' as defined in Executive Order 12866. Therefore, the
regulatory review procedures contained therein do not apply.

Regulatory Flexibility Act Analysis

It is hereby certified that the final rule will not have a
significant economic impact on a substantial number of small entities.
The final rule imposes on the Federal Government a number of changes
that Nacha has already adopted and imposed on private sector entities
that utilize the ACH Network. The rule does not impose any additional
burdens, costs or impacts on any private sector entities, including any
small entities. Accordingly, a regulatory flexibility analysis under
the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) is not required.

Unfunded Mandates Act of 1995

Section 202 of the Unfunded Mandates Reform Act of 1995, 2 U.S.C.
1532 (Unfunded Mandates Act), requires that the agency prepare a
budgetary impact statement before promulgating any rule likely to
result in a Federal mandate that may result in the expenditure by
State, local, and tribal governments, in the aggregate, or by the
private sector, of $100 million or more in any one year. If a budgetary
impact statement is required, section 205 of the Unfunded Mandates Act
also requires the agency to identify and consider a reasonable number
of regulatory alternatives before promulgating the rule. We have
determined that the final rule will not result in expenditures by
State, local, and tribal governments, in the aggregate, or by the
private sector, of $100 million or more in any one year. Accordingly,
we have not prepared a budgetary impact statement or specifically
addressed any regulatory alternatives.

List of Subjects in 31 CFR Part 210

Automated Clearing House, Electronic funds transfer, Financial
institutions, Fraud, Incorporation by reference.

Words of Issuance

For the reasons set out in the preamble, 31 CFR part 210 is amended
as follows:

PART 210--FEDERAL GOVERNMENT PARTICIPATION IN THE AUTOMATED
CLEARING HOUSE

0
1. The authority citation for part 210 continues to read as follows:

Authority: 5 U.S.C. 5525; 12 U.S.C. 391; 31 U.S.C. 321, 3301,
3302, 3321, 3332, 3335, and 3720.

0
2. In Sec. 210.2:
0
a. Revise paragraph (a) and paragraph (d) introductory text;
0
b. Redesignate paragraphs (d)(2) through (7) as paragraphs (d)(3)
through (8); and
0
c. Add new paragraph (d)(2).
The revisions and addition read as follows:

Sec. 210.2 Definitions.

* * * * *
(a) ACH Rules means the 2021 Operating Rules & Guidelines,
including Supplement #1-2021, (both incorporated by reference, see
Sec. 210.3(b)) published by Nacha, a national association of regional
member clearing house associations, ACH Operators, and participating
financial institutions located in the United States.
* * * * *
(d) Applicable ACH Rules means the ACH Rules, except:
* * * * *
(2) Section 1.14 (governing the Participating DFI Contact
registry);
* * * * *

0
3. In Sec. 210.3, revise paragraph (b) to read as follows:

Sec. 210.3 Governing law.

* * * * *
(b) Incorporation by reference. Certain material is incorporated by
reference into this part with the approval of the Director of the
Federal Register under 5 U.S.C. 552(a) and 1 CFR part 51. To enforce
any edition other than that specified in this section, the Bureau of
the Fiscal Service must publish a document in the Federal Register and
the material must be available to the public. All approved material is
available for inspection at the Bureau of the Fiscal Service, 401 14th
Street SW, Room 400A, Washington, DC 20227, ph. (202) 874-6680 and from
the sources listed below. It is also available for inspection at the
National Archives and Records Administration (NARA). For information on
the availability of this material at NARA, email <a href="/cdn-cgi/l/email-protection#aec8dc80c7c0dddecbcddac7c1c0eec0cfdccf80c9c1d8">[email&#160;protected]</a>
or go to <a href="http://www.archives.gov/federal-register/cfr/ibr-locations.html">www.archives.gov/federal-register/cfr/ibr-locations.html</a>.
(1) Nacha, 2550 Wasser Terrace, Suite 400, Herndon, Virginia 20171,
tel. 703-561-1100, <a href="/cdn-cgi/l/email-protection#d2bbbcb4bd92bcb3b1bab3fcbda0b5">[email&#160;protected]</a>.

[[Page 47]]

(i) 2021 Nacha Operating Rules & Guidelines: The Guide to the Rules
Governing the ACH Network, copyright 2021; into Sec. 210.2.
(ii) Supplement #1-2021, Notice of Amendment to the 2021 Nacha
Operating Rules, dated April 8, 2021; into Sec. 210.2.
(2) [Reserved]
* * * * *

Sec. 210.6 [Amended]

0
4. In Sec. 210.6, in paragraph (g), remove the text ``2019 NACHA
Operating Rules and Guidelines'' and add in its place the text
``applicable ACH Rules''.

David A. Lebryk,
Fiscal Assistant Secretary.
[FR Doc. 2021-28048 Filed 12-30-21; 8:45 am]
BILLING CODE P

</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>

View on FederalRegister.gov →Plain-text source

Indexed from Federal Register on January 3, 2022.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.