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ACH compliance an issue 6/25 Businesswire Laru Corp surveyed financial institutions on their ACH compliance processes as an ODFI & RDFI. The findings of the survey on the origination side showed ½ of respondents reported manual or no automated system for monitoring ACH transactions originated by their financial institution. According to the Fed & Towergroup, ACH transactions will reach 24.5b by 2009. 12% of respondents reported they do not currently monitor originating ACH transactions; 50% monitor transactions daily; 19% monitor transactions weekly; & 19% monitor transactions monthly. 23% said ACH transactions originated within their financial institution had a return rate between 2 & 5%. 19% of respondents reported this number was increasing. On the receiving side, 13% of responding financial institutions reported they had more than 2,000 ACH violations hitting their customers annually as a result of fraud or network violations, while 20% reported between 500 & 1,000 violations annually. ½ of all respondents stated that the number of violations hitting their customers as a result of fraud or network violations had increased from 2006 to 2007. As an RDFI, 35% said they did not have an automated system in place or manually track & research ACH violations. 17 financial institutions participated in the survey. The banks surveyed originate 1.3b & receive 1.4b ACH transactions annually. ‘The results of this survey show that a large number of the responding financial institutions have no automated system to monitor ACH transactions or currently monitor transactions manually for conformance to network rules & contractual terms,’ said William Vaughan, Laru. ‘The increasing number of fraud & network violations for financial institutions serving as RDFIs shows that a significant number of these institutions lack appropriate systems to detect, research & properly resolve ACH transaction issues efficiently. By implementing an automated system that continuously monitors ACH transactions, a financial institution can significantly reduce the risk of fraud & network violations while improving customer service & reducing the overall cost of delivering the service.’