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So the flow would still be: You > Bank/Financial Corp > Fed > Receiving Bank > Destination right? Would banks still be able to hold transactions as pending un
by vorpalhex 4y ago
So the flow would still be:
You > Bank/Financial Corp > Fed > Receiving Bank > Destination
right? Would banks still be able to hold transactions as pending until they do daily settlement?
- toomuchtodo 4y agoNo, settlement must be immediate (unless fraud, AML, KYC, US sanctions/OFAC, or a similar exception). https://www.federalregister.gov/documents/2022/06/06/2022-11090/collection-of-checks-and-other-items-by-federal-reserve-banks-and-funds-transfers-through-fedwire https://www.federalregister.gov/documents/2022/06/06/2022-11... (control-f “Immediate Funds Availability”)
- vorpalhex 4y agoAh, I see it. For anyone following along: > The FedNow Service is designed for the end-to-end transfer to be completed in a matter of seconds, as described in the 2020 Notice. This means that the beneficiary's bank would agree, as provided in proposed subpart C, that it will make funds available to the beneficiary immediately after it has accepted the payment order.