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US7881996: Method and system for screening financial transactions

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Filing Information

Inventor(s) Larry Schulz ·
Assignee(s) Federal Reserve Bank of Atlanta ·
Attorney/Agent(s) King & Spalding ·
Primary Examiner Charles R Kyle ·
Assistant Examiner Robert R Niquette ·
Application Number US11195885
Filing date 08/03/2005
Issue date 02/01/2011
Predicted expiration date 11/29/2027
Patent term adjustment 848
U.S. Classifications 705/35  · 705/41  · 705/38  · 705/39  · 705/40  · 705/37  · 705/42  · 705/43  · 705/44  · 705/45  · 705/36  ·
International Classifications G06Q4000  ·
Kind CodeB1
Related U.S. Application DataRELATED PATENT APPLICATIONS
The present patent application claims priority under 35 U.S.C. §119 to U.S. Provisional Patent Application No. 60/598,238, entitled “Method and System for Screening Financial Transactions,” filed Aug. 3, 2004, which is hereby incorporated by reference, and is related to U.S. patent application Ser. No. 10/868,729, entitled “Method and System for Conducting International Electronic Financial Transactions,” filed Jun. 15, 2004, which is hereby incorporated by reference.
39 Claims, 13 Drawings


Abstract

Efficiently screening ACH items and providing an indicator of the screening result. Electronic files, which can be in the NACHA file format, comprise ACH items. A gateway operator or an originating financial institution can screen each ACH item using a screening software module. For each ACH item, an indicator associated with the screening can be inserted into the ACH file before the ACH item is forwarded to a receiving financial institution. The indicator can identify whether the screening produced a match against an interdiction list and/or whether the screening produced a false positive. If the screening produced a match, processing of the ACH item can be suspended, and the ACH item can be returned to the originating financial institution. Notification of the match can be transmitted to the originating financial institution, the receiving financial institution, and/or law enforcement authorities.

Independent Claims | See all claims (39)

  1. 1. A computer-implemented method for screening an automated clearinghouse (“ACH”) item between a sending customer and a receiving customer, comprising the steps of: receiving a NACHA formatted ACH file comprising the ACH item from a first financial institution; determining at a screening module whether at least one of the sending customer and the receiving customer is identified on an interdiction list, the interdiction list comprising information identifying at least one person or entity that is prohibited from conducting a financial transaction; and in response to the foregoing determining step, the screening module inserting an indicator in the NACHA formatted ACH file, the indicator for use in further processing of the ACH file and being associated with the ACH item and indicating whether the at least one of the sending customer and the receiving customer is identified on the interdiction list, wherein the screening module is implemented in a computer system that comprises instructions stored in a machine-readable medium and a processor that executes the instructions.
  2. 17. A computer program product having stored therein a set of instructions that, when executed, cause a computer to implement a process of screening an automated clearinghouse (“ACH”) item between a sending customer and a receiving customer, the process comprising the steps of: determining whether at least one of the sending customer and the receiving customer is identified on an interdiction list, the interdiction list comprising information identifying at least one person or entity that is prohibited from conducting a financial transaction, and in response to determining that at least one of the sending customer and the receiving customer is identified on the interdiction list, inserting a first indicator into an ACH file that comprises the ACH item, the first indicator for use in further processing of the ACH file and indicating that at least one of the sending customer and the receiving customer is identified on the interdiction list.
  3. 25. A computer-implemented method for screening an automated clearinghouse (“ACH”) item between a sending customer and a receiving customer, comprising the steps of: creating a NACHA formatted ACH file comprising the ACH item at a first financial institution; determining at a screening module whether at least one of the sending customer and the receiving customer is identified on an interdiction list, the interdiction list comprising information identifying at least one person or entity that is prohibited from conducting a financial transaction; and in response to the foregoing determining step, the screening module inserting an indicator in the NACHA formatted ACH file, the indicator for use in further processing of the ACH file and being associated with the ACH item and indicating whether the at least one of the sending customer and the receiving customer is identified on the interdiction list, wherein the screening module is implemented in a computer system that comprises instructions stored in a machine-readable medium and a processor that executes the instructions.

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Referenced By

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US8024173 WordRake Holdings, LLC Gary W. Kinder Sep 2011
US8676700 --

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