New York, NY — ACHBanking, a subsidiary of FinTech holding company, eProdigy, announced today that it has integrated OFAC (Office of Foreign Assets Control) standards into its platform, effective immediately.
The integration enables ACHBanking to comply with regulations designed to monitor, screen and prevent the movement of funds between entities on a watch list, or suspected of being involved in illegal activities. In the wake of the U.S. Treasury Department’s fine imposed on PayPal in March of 2015 for enabling payments to be processed to or from entities on the OFAC watch list, alternative funding companies like eProdigy have sought to further refine their processes by prescreening applicants against the list. This layer of compliance is the latest addition to eProdigy’s use of technology to simplify electronic transactions going through its systems and ensure their legitimacy. The OFAC integration goes directly to its ACHBanking platform, which checks against or “scrubs” for matches. The system automatically prevents a payer or payee from being created and it disallows particular transactions where a match was identified, from ending up in a batch feed that goes to the bank and NACHA.
eProdigy CEO David Rubin notes, “As we continue to improve processes in our relatively young, alternative finance industry, it has become a matter of security to factor in compliance issues such as OFAC. The recent PayPal case reminds us that the U.S. is a big country with a lot of possible loopholes. To me this further
demonstrates that technology can go beyond speeding up transactions, to helping us stop potentially dangerous payments to or from a given entity. Checking applications against the OFAC watch list helps close some loopholes, bringing it into the realm of playing a role in the nation’s security.”
eProdigy is a FinTech holding company serving the alternative lending industry by providing products, services and a lending platform through its subsidiary companies, Capital Stack, ACH Capital, eProdigyACH DBA ACHBanking, eProdigy Loans, and 1Workforce. In addition to originating loans and cash advances, the company makes its platform available to ISOs and other funders. Capital Stack is also the cofounder and 50% owner of DailyFunder, an online forum and publication that covers the alternative finance industry.
For more information, please visit http://www.e-prodigy.com.