If an ODFI cannot provide NACHA with a requested ACH Audit report, what class of Rules Violation is it considered?

If an ODFI cannot provide NACHA with a requested ACH Audit report, what class of Rules Violation is it considered?

• A. Class 1
• B. Class 2
• C. Class 3
• D. Class 4

Answer: (B)

When an ODFI (Originating Depository Financial Institution) fails to provide NACHA with a requested ACH Audit report, it is classified as a Class 2 Rules Violation. Class 2 violations cover more serious infractions that can potentially affect the integrity of the ACH network and the security of transactions. Specifically, when an ODFI is unable to supply necessary documentation when requested by NACHA, it raises concerns about compliance with ACH network rules and operational procedures. The consequences of Class 2 violations can include penalties or further scrutiny by NACHA, as they imply a need for the ODFI to maintain transparent and accountable operations, especially regarding audit and compliance processes. Understanding this classification helps emphasize the importance of adherence to NACHA’s rules and the responsibilities that ODFIs have to the network and its users.

When an ODFI (Originating Depository Financial Institution) fails to provide NACHA with a requested ACH Audit report, it is classified as a Class 2 Rules Violation. Class 2 violations cover more serious infractions that can potentially affect the integrity of the ACH network and the security of transactions. Specifically, when an ODFI is unable to supply necessary documentation when requested by NACHA, it raises concerns about compliance with ACH network rules and operational procedures.

The consequences of Class 2 violations can include penalties or further scrutiny by NACHA, as they imply a need for the ODFI to maintain transparent and accountable operations, especially regarding audit and compliance processes. Understanding this classification helps emphasize the importance of adherence to NACHA’s rules and the responsibilities that ODFIs have to the network and its users.