Accredited ACH Professional (AAP) Practice Exam

Which institution primarily governs the ACH Network?

1. NACHA

2. Federal Reserve

3. Office of the Comptroller of the Currency

4. FDIC

The correct answer is: NACHA

The ACH Network is primarily governed by NACHA (the National Association of Federal Credit Unions) because it establishes the rules and guidelines that direct the operations of the network. NACHA is responsible for the development, administration, and governance of the ACH operating rules, ensuring the secure and efficient transfer of electronic payments and transactions. Its role includes setting the standards for how transactions are processed and ensuring compliance among the participating financial institutions. This governance structure allows NACHA to foster innovation while maintaining the integrity and reliability of the ACH Network, which is essential for electronic payments in the United States. In contrast, while the Federal Reserve plays a critical role as a processor and an operator of the ACH system, it does not set the rules for the network. The Office of the Comptroller of the Currency (OCC) and the FDIC are regulatory bodies overseeing financial institutions but do not govern ACH operations directly. Their roles involve regulating banks and ensuring their soundness rather than managing the specific operational rules of the ACH Network.