This extensive guide is designed to inform users about the operations and functionalities of the FedNow® service. It includes detailed operating procedures, compliance guidelines and expectations for participants, emphasizing anti-money laundering and sanctions compliance. You’ll get an introductory overview, including essential terms of the service, as well as an understanding of the compliance programs necessary for participants, the importance of adhering to legal standards, practices to prevent money laundering and participant expectations in terms of operational integrity and adherence to the rules. You’ll also learn about the testing environments and protocols for participants to ensure smooth integration and functionality, and procedures for managing transactions, including error handling, dispute resolution and guidelines on how to handle financial reporting and reconciliation, which are crucial for maintaining transactional accuracy and accountability.
The document is primarily intended for financial institutions that participate in or are considering participating in the FedNow® Service. Its content is particularly valuable for compliance officers, IT professionals and operational managers within these institutions who are responsible for implementing and managing the FedNow® Service protocols.