Flagright Advances ACH Security as Nacha Preferred Partner

Flagright, which provides a transaction monitoring engine, has become a Nacha Preferred Partner for ACH Compliance, Fraud Monitoring, and Risk and Fraud Prevention, Nacha said in a Monday (Aug. 24) press release.

Nacha Preferred Partners are organizations that have demonstrated leadership and innovation in products and services that advance the ACH Network governed by Nacha, according to the release.

Flagright’s transaction monitoring engine helps organizations “keep watch on incoming and outgoing payment activity, identify deviations from expected behavior and prioritize alerts according to their own risk policies,” the release said. Flagright supports more than 100 customers across financial services and payments.

“Safety is paramount to all ACH Network payments, and fighting fraud is of the highest importance for Nacha,” Nacha President and CEO Jane Larimer said in the release.

Nacha announced in July that the ACH Network’s ACH volume increased 6.2% year over year to 9.3 billion payments, and the value of those payments grew 11.1% to $25.9 trillion.

Flagright Co-Founder and CEO Baran Özkan said in the release that becoming a Nacha Preferred Partner will help the company support the continued growth of ACH with fraud and compliance controls that don’t create unnecessary friction for legitimate payments.

“Becoming a Nacha Preferred Partner gives Flagright a stronger forum to engage the payments community, share practical approaches to real-time, risk-based monitoring, and help institutions connect ACH fraud detection, AML controls, investigations and governance in one operating system,” Özkan said. “We look forward to supporting a safer, more resilient ACH ecosystem.”

Flagright announced in June that it raised $12.5 million in a Series A funding round to increase the capabilities and adoption of its artificial intelligence operating system for financial crime compliance.

When announcing the funding round, Flagright said in a press release that compared to fragmented tools, its platform delivers up to 93% fewer false positives and 80% lower compliance costs.

Today’s agentic AI systems for financial crime compliance are beginning to reshape the very structure of financial compliance work, Flagright Co-Founder and Chief Technology Officer Madhu Nadig told PYMNTS in an interview in June.

“The more context a system of record plus a system of action can have, the more use cases we can serve and the deeper the use cases,” Nadig said.

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