OFAC Sanctions Screening for FedNow

OFAC Sanctions Screening for FedNow℠: What are the obligations of participating financial institutions?

By Neil Kumar | May 23, 2023

Up until recently, it’s been unclear whether FedNow℠ instant payments will face OFAC (Office of Foreign Assets Control) sanctions screening. Financial institutions anticipated FedNow℠ instant payment would face similar regulations as The Clearing House’s RTP® network, where financial institutions are required to integrate to sanctions screening in real time. However, Operating Circular No. 8 – “Funds Transfers Through the FedNow℠ Service” – includes clarification on sanctions screening obligations for FedNow℠ participants.  

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Road sign that says 'Old ways won't open new doors'.

Embedded Finance: What is it and what does it mean to credit unions?

By Jim Olney | June 10, 2022

Embedded finance sits high on nearly every emerging technology trend list. If you’re not sure what it’s about, you’re certainly not alone.

Embedded financial solutions are one of those things that you’ve probably experienced without giving it any thought. In fact, a December 2021 poll by Morning Consult concluded that only 11% of U.S. adults are familiar with embedded finance, while nearly one-third of that population has unknowingly used or experienced it.

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Real-Time Payments: What are they really?

By Jim Olney | May 24, 2022

Headline results from a recent payment survey caught my eye. The report indicated that 99% of credit union respondents offer real-time payments to their members. This comes from the April 2022 Credit Union Innovation Playbook, released in collaboration by PYMNTS and PSCU. Granted, only 101 credit unions participated in the survey. Even so, 77% stated they offer real-time payments to all members and 22% offer real-time payments to some of their members. That means only one survey respondent does not offer real-time payments!

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Real-Time Networks: What’s the difference between them?

By Margo Giles | April 29, 2022

Picture this. You’re out to dinner with a group of three friends. The bill is delivered to the table, and you offer to pick up the check. “No need to treat,” one friend exclaims! “I’m happy to send a Venmo,” proclaims another. Within seconds, you have three payments hitting your Venmo account. Feels pretty darn real-time, doesn’t it? Sorry to disappoint, but while they may be fast, Venmo payments are not real-time payments.

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Impact of RTPs on Interchange Fee Income

Interchange Fees: What impact will real-time payments have?

By Jim Olney | April 28, 2022

When’s the last time you took a good look at your credit union’s non-interest income? Do you know how much credit and debit card interchange income your credit union earns each month? National statistics show that interchange fee income ranges from 50-67% of the total non-interest income for credit unions. That’s a meaningful slice of total income. Interchange income may well be the difference between profitability and loss for many credit unions.

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Do you know of any bill pay solutions that are using Visa Direct, same day ACH, and/or RTP? I would love to explore how credit unions could potentially bring the bill pay relationship in-house with the right platform. Bill pay solutions already have the end-user interface to allow members to send money to merchants and people, and have some ability to translate transactions into core account posting. 

By Margo Giles | April 15, 2022

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