Can banks recall international wire transfers during compliance investigations?

It depends.

If the receiving bank wants to ‘investigate’ the money, i.e. source of funds, or if you or the transaction has been flagged in any manner whatsoever, you would most likely be the last person to know about this.

In a sequence of events, the receiving bank will approach the intermediary bank to request more information from the originating bank and the customer who initiated the wire transfer.

Sometimes, the receiving bank may have direct access to the originating bank and the customer. In which case they will ask directly.

If the sending bank refuses to provide answers or initiates a request to cancel the wire transfer and have it returned, it usually would be, unless there is a reason for the funds not to be returned (e.g. money laundering flag, sanctioned person, etc.)

The funds can also be returned if the intermediary bank has not passed them on to the beneficiary bank. It is very much possible to have the money returned but in good faith. Banks do not like channeling transactions where they cannot get answers (as requested by the receiving bank) from their customer.