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Susan Combs•Texas Comptroller of Public Accounts

ACR 28415 – TINS System Change
May 11, 2012

Introduction

ACR 28415 created a new International Automated Clearing House (ACH) Transaction (IAT) indicator in the Texas Identification Number System (TINS) effective May 11, 2012.

Issue

State agencies and institutions of higher education are responsible for ensuring Compliance With U.S. Department of the Treasury Office of Foreign Assets Control (OFAC) Requirements (FPP E.016), which has been updated.

OFAC requires that all direct deposit payments transmitted outside the United States be identified and monitored. In addition, the National Automated Clearing House Association (NACHA) has adopted specific rules regarding IATs. NACHA requires entities that originate ACH payments to comply with IAT rules and federal law.

Since TINS did not include a field to identity payees who indicate their payments will be transmitted outside the U.S., the Fiscal Management Division was maintaining a list manually.

Solution

ACR 28415 changed the BUSINESS DESC field on the Payee Master Level Setup (PMSTUP) and Payee Master Level Change (PCHGMS) screens to IAT IND. The new IAT indicator will be entered by agencies to ensure due diligence with OFAC compliance. Batch updates for the IAT indicator will not be available, and the current batch T-code for BUSINESS DESC will now default to 000.

The International Payments Verification section on the Direct Deposit Authorization forms asks payees to indicate if their payments will be forwarded to a financial institution outside the U.S. When a payee answers yes in this section, agencies must NOT set up the direct deposit instructions in TINS. The forms instruct payees to complete the new ACH (Direct Deposit) Payment Destination Confirmation form (74-227) PDF. If the payees do not complete the additional form, then agencies are responsible for providing it to the payee for completion.

If payees confirm that their direct deposit payments are destined for outside the U.S. on the new form, then agencies must NOT set up the direct deposit instructions in TINS. Enter Y in the IAT IND field on PMSTUP for new payees and on PCHGMS for established payees.

Please see Procedure for Agencies Using TINS in FPP E.016 for complete instructions.

Screens Affected

Note: PYMAST and PYADDR no longer display the BUSINESS DESCRIPTON field.

Reports Affected

None

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Susan Combs
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.state.tx.us
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