New requirements for wire transfers and ACH payments
July 17, 2017
As you may be aware there are increasing fraud attempts throughout the banking industry in the area of wire transfers and ACH payment. Requests to change banking information for payments that look legitimate come into organizations on a regular basis. One of our peers experienced a significant financial loss as a result. Our banks and insurance carriers are looking to us to implement best practices to reduce this risk. With the implementation of Workday Yale is formalizing requirements for vendors set up to receive ACH or wire transfers to the following:
- Bank wire and ACH instructions must be submitted on bank letterhead for all new vendors and any changes in banking for existing vendors.
- Individuals receiving wire transfers or ACH may submit a bank deposit ticket or bank statement header along with their full wire instructions in place of a bank letter.
We recognize that this is an additional burden especially at the time of a new implementation. There will be a four month phase in during which time wires or ACH to an individual’s bank accounts will be processed without the back up above. Effective November 1st, the above documentation will be required to process the payment. We do request compliance as soon as possible.
Thank you for your assistance in implementing best practices to avoid fraud and errors, as recommended by our banks and insurance carriers.