IAT is an ACH payment classification that became effective September 18, 2009. While this ACH payment type replaces cross border Standard Entry Class (SEC) codes, CBR and PBR, certain transactions sent as domestic transactions now have the requirement of being categorized as international transactions.

IATs are payments that have been funded internationally or are being sent to another country with at least part of the transaction being processed through the ACH Network.

IAT was developed in response to a request from the Office of Foreign Asset Control (OFAC). The code and related rules and formats allow the transactions to be appropriately identified and screened for OFAC compliance.

Who is impacted?

All U.S. businesses are required to comply with OFAC obligations. The rules and formats may require your firm to make changes to how you process payments today.

• Does your firm buy from or sell to organizations or individuals outside the U.S.?
• Is your firm a subsidiary of a multinational company?
• Does your organization have foreign subsidiaries?
• Does your company send payroll, pension or benefit payments via the ACH Network to individuals who permanently reside outside the U.S.?

If you answered yes to any of the above questions, you need to learn more about IAT.