R16 ACH return code: Account Frozen or Returned per OFAC Instruction
The bank has restricted the account, by its own decision or because of a legal order, or the US Treasury's sanctions office (OFAC) told the bank to return the payment.
R16 key facts
| Official title | Account Frozen/Entry Returned Per OFAC Instruction |
|---|---|
| Other names you may see | Account Frozen. A shorter form of the title. A Federal Reserve manual uses it. |
| Returned by | Receiving bank (RDFI) |
| Time frame | 2 banking days The receiving bank must send the return so that it reaches the sending bank by the opening of business on the second banking day after the payment settled. |
| Applies to | Consumer and business accounts |
| Can you send it again? | Only after you fix the reason for the return. Under the general Nacha rule, a returned payment may be sent again within 180 days if you have corrected the problem. |
| Type of return | Standard return |
From March 17, 2028 a new code, R90, takes over sanctions returns and the title of R16 becomes "Account Frozen".
Why R16 happens
- Legal action, such as a court order, restricted the account.
- The bank itself restricted access to the account.
- OFAC instructed the bank to return the payment.
What to do next
If you sent the payment
- If the return mentions OFAC, talk to your bank's compliance team before you contact the customer.
- Contact the customer and arrange another way to pay.
- Do not keep sending the payment to this account.
Message you can send the customer
Change the words in [square brackets] before you send it.
Hello [name], Your ACH payment of [amount] dated [date] was returned by your bank (return code R16). Please ask your bank why it returned the payment, and contact us to arrange another way to pay. Thank you, [business]
If you got the notice about your own account
- Ask your bank why it returned the payment and what you need to do.
Got a return file from your bank? Open it in the ACH file viewer to see the code next to each payment.
Questions and answers
Does R16 always mean the account is frozen?
Not always. Until March 16, 2028, R16 has two uses: the bank restricted the account itself or because of legal action, or OFAC instructed the bank to return the payment. From March 17, 2028 sanctions returns move to a new code, R90, and R16 means a frozen account only.
Sources
- New Return Reason Code for Sanctions Compliance Obligations, Nacha
- Green Book: A Guide to Federal Government ACH Payments, US Treasury, Bureau of the Fiscal Service
- 2024 ACH Quick Reference Guide, EPCOR
- 2024 ACH Quick Reference Guide for Corporate Users, EPCOR
- ACH Return, NOC and Transaction Codes, Commerce Bank
- FedGlobal ACH Payments Origination Manual, Federal Reserve Financial Services
General information, not legal or financial advice. Rules change and banks set their own requirements. Check with your bank before you act. ACH Forms is not affiliated with Nacha.