New risk mitigation tool for correspondents with an active FedNow® Service participant profile
September 27, 2024
Effective Sept. 27, the risk mitigation tool — correspondent net send limit — is available in production for correspondents with an active FedNow Service participant profile.
Net send limit functionality allows correspondents to set net send limits on FedNow Service activity at the respondent financial institution level. Net send limits apply to all value messages (pacs.008, pacs.004 and pacs.009) on the FedNow Service for direct respondents, including activity of the respondent’s subaccounts, Other Secondary RTNs (OSRTNs) or other respondents within their settlement structure.
If you are a correspondent and would like to leverage the new risk mitigation tool, please complete the following steps:
- Request the Risk Mitigation access level which may be requested in addition to other FedNow Service access levels or as a stand-alone access level. Your End User Authorization Contact (EUAC) can submit a request on your behalf via the EUAC Center within FedLine® Home. If you do not know who your organization’s EUAC is, please contact the Support Center. After the access level request has been processed, you and your EUAC will receive a confirmation email.
- Reach out to your FedNow onboarding manager to request configuration updates on your FedNow Service profile, including enabling the net send limit permission. Other updates may be needed based on current configuration and testing plans.
Once your profile is configured, navigate to the FedNow interface and select Risk Mitigation Tools, then Correspondent Limits. Please note that Negative List and Managed RTN Group remain under the Risk Management section; this will be updated in the future.
For questions, contact your onboarding manager or the Support Center.