COVID-19 Information

The impact of the COVID-19 crisis on the financial services industry is significant, and we can only imagine the impact on our regional community. On behalf of every employee at NEACH, we wish good health for you and your loved ones. 


As the scope of the COVID-19 pandemic continues to take shape, we recommend that you check this page for the latest information and resources. The NEACH team will continue to populate this space with information as it is released. For questions, please contact us via the Payments Hotline (1-855-NEACH-QA), via Members Corner (engage.neach.org) or by email at info@neach.org

 
URGENT: Massive Fraud Against State
Unemployment Insurance Programs

Identification of Unemployment Payments by State


NEACH is currently working on identifying the ODFIs for the state unemployment offices, to answer the following questions:

1) How are the entries formatted?
You will want to know this, so that you if your able and wish to do additional screening for fraud you can. We are currently awaiting information to answer this question.
 
2) What is the best return code to use if the fraud is spotted beyond the normal return time frame?
The entries have a name mismatch so if spotted in time an R03 would work fine but some FIs are concerned the return will be dishonored.  This maybe unlikely but we want to know that for sure.
 
Based on our research, we have the following update regarding return codes:
 
Return codes within the timeframe:
 
> R03 – When there is a mismatch name
> R16 – If action has been taken to restrict the account
> R-17 – When there is questionable activity
 
Return codes when outside of the two-day timeframe:
 
> R-06 – For use with permission from the ODFI
> R-23 – Acceptable for use in this circumstance
 
3) Can an RDFI delay availability on ACH Payments if they suspect Fraud?
Yes, the Nacha Operating Rules allow for the delay in availability requirements if an RDFI reasonable suspects that a credit Entry is unauthorized.  The RDFI is instructed to reach out to the ODFI promptly in these cases.  This is not an unlimited time.  There are REG CC requirements for posting of electronic items that still must be met (First Business Day Following Banking Day of Deposit).  You may have rights within your account agreements as well.  RDFIs should follow processes it would anytime fraudulent activity occurs on an account.
 
4) What is the liability to the RDFI?
These entries are commercial items (non-government) are subject to the Nacha Operating Rules, which are clear that an RDFI may rely solely on account number for posting.  The ODFI warrants that the information in the entry is accurate and the entry itself is lawful.  This is not the responsibility of the RDFI under the Rules.  The RDFI can certainly help stop this fraud or at least help stop the fraudulent funds from being withdrawn.  The rules allow for an RDFI that suspects a credit is fraudulent to delay availability up to 1 day.

The money mule needs to get the funds out from the account at the RDFI and this is where RDFIs with strong monitoring systems can have the biggest impact.  Newly opened accounts or accounts that have been dormant all of sudden are receiving ACH deposits from the state unemployment offices into the account and then immediately trying to either move the money out through online banking or at an ATM could and probably should trip an alarm.
 
 NEACH will continue to update this area of the resource page as we get information from the ODFIs and the answers to the questions you will need answered to help stop this fraud.

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Resources & Links

This information is being updated regularly, make sure to check back on a frequent basis.

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March 24, 2020 COVID-19 Information
March 16, 2020 NEACH Update: COVID-19


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May 19, 2020 Media Advisory: CFPB Releases Video on Consumers Receiving Stimulus Payment on Prepaid Debit Card
May 12, 2020 CFPB, FHFA, & HUD Launch Joint Mortgage and Housing Assistance Website for Americans Impacted by COVID-19
May 06, 2020 Consumer Financial Protection Bureau Issues Clarifications to Support Small Business Applying for PPP Loans
April 21, 2020 Media Advisory: Consumer Financial Protection Bureau Releases Video for Non-Filers on Economic Impact Payments
April 14, 2020 Federal Banking Agencies to Defer Appraisals and Evaluations for Real Estate Transactions Affected by COVID-19
April 13, 2020 Consumer Financial Protection Bureau Paves Way for Consumers to Receive Economic Impact Payments Quicker
April 10, 2020 Consumer Financial Protection Bureau Announces Guidance on Remittance Transfers During COVID-19 Pandemic
April 07, 2020 Agencies Issue Revised Interagency Statement on Loan Modifications by Financial Institutions Working with Customers Affected by the Coronavirus

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April 9, 2020 Federal bank regulators issue interim final rule for Paycheck Protection Program Facility
April 9, 2020 Federal Reserve takes additional actions to provide up to $2.3 trillion in loans to support the economy
April 8, 2020 Federal Reserve Board announces, due to the extraordinary disruptions from the coronavirus, that it will temporarily and narrowly modify the growth restriction on Wells Fargo so that it can provide additional support to small businesses
April 7, 2020  Agencies issue revised interagency statement on loan modifications by financial institutions working with customers affected by the coronavirus
April 6, 2020 SR 20-10: Small Business Administration (SBA) and Treasury Small Business Loan Programs
April 6, 2020 Federal Reserve will establish a facility to facilitate lending to small businesses via the Small Business Administration's Paycheck Protection Program (PPP) by providing term financing backed by PPP loans
April 6, 2020 Agencies announce changes to the community bank leverage ratio
March 21, 2020 Money Market Mutual Fund Liquidity Facility (MMLF) FAQs
March 20, 2020 Federal Reserve Board expands its program of support for flow of credit to the economy by taking steps to enhance liquidity and functioning of crucial state and municipal money markets
March 19, 2020 CA 20-4: CRA Consideration for Activities in Response to the Coronavirus
March 19, 2020 Federal Reserve Board encouraged by increase in discount window borrowing to support the flow of credit to households and businesses
March 19, 2020 Federal Reserve announces the establishment of temporary U.S. dollar liquidity arrangements with other central banks
Swap Lines FAQs

March 17, 2020 Federal Reserve Board announces establishment of a Commercial Paper Funding Facility (CPFF) to support the flow of credit to households and businesses
March 17, 2020 Federal banking agencies provide banks additional flexibility to support households and businesses SR 20-5: Questions and Answers (Q&As) on Statement Regarding the Use of Capital and Liquidity Buffers (March 19, 2020)


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March 11, 2020  ICBA Statement on Coronavirus ‚Äč


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March 17, 2020 COVID-19 SCAMS


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