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NACHA to Launch Originator Watch List (OWL) Service

New Risk Management Tool for ODFIs

NACHA launched a new risk management service, the Originator Watch List (OWL), on December 19, 2007. The service, a component of NACHA's strategic risk management framework for the ACH Network, will assist ODFIs in the evaluation of risk profiles for origination. The OWL will identify Originators and Third-Party Senders that trigger specified risk review thresholds. Designed to augment existing assessment and decision-making measures used by ODFIs, the OWL does not introduce or imply any prohibition on initiating entries for entities listed. Rather, ODFIs are encouraged to consider this information as a part of their underwriting and risk management.

The OWL will roll out in two phases. NACHA's Direct Members will pilot the service during phase one, set to launch December 19, 2007. The pilot phase affords Direct Members an opportunity to communicate feedback to NACHA and allows NACHA to make any necessary changes prior to launching phase two of the service. NACHA invites Regional Payments Associations (RPAs) to access the listing for informational purposes but requests that they not share the information with their members during the first phase. NACHA anticipates making the OWL available to all ODFIs during phase two, expected to launch during second quarter 2008.

The linked FAQ provides additional details of the service.