Outbound payments originator responsibility

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Multiple Choice

Outbound payments originator responsibility

Outbound payments initiated by the originator are entered into the ACH network by the Originating Depository Financial Institution (ODFI). That bank is responsible for ensuring the transaction complies with NACHA rules and for the applicable BSA/AML obligations, including customer due diligence, screening against sanctions lists, and monitoring for suspicious activity. The RDFI, on the other hand, is simply the receiving bank that processes funds once they’ve been sent; it handles the debit as it arrives and may manage returns, but it does not originate or control the outbound payment. So the ODFI carries the responsibility for outbound payments initiated by the originator.

Outbound payments initiated by the originator are entered into the ACH network by the Originating Depository Financial Institution (ODFI). That bank is responsible for ensuring the transaction complies with NACHA rules and for the applicable BSA/AML obligations, including customer due diligence, screening against sanctions lists, and monitoring for suspicious activity. The RDFI, on the other hand, is simply the receiving bank that processes funds once they’ve been sent; it handles the debit as it arrives and may manage returns, but it does not originate or control the outbound payment. So the ODFI carries the responsibility for outbound payments initiated by the originator.

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