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Foreign Asset Control Requirements
Prohibition on Direct Deposit to Financial Institutions Outside the U.S.

OFAC requires that all direct deposit payments transmitted outside the United States be identified and monitored. In addition, NACHA has adopted specific rules regarding International ACH Payments (IATs). For a helpful introduction, see the IAT Tutorial.

Your agency is responsible for ensuring that the direct deposit payments issued to accounts at U.S. financial institutions are not being transferred to financial institutions outside the U.S.

Note: Each agency is responsible for maintaining the IAT IND field for their payees and ensuring there is no indication that payees intend to transfer direct deposit payments outside the U.S. If there is any doubt, the agency should contact the payee before setting up direct deposit information to ensure that the agency’s payments will remain in the U.S.