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What are common compliance-related reasons banks reject wire transfers?

Payments
Asked by Question Bot01/Jul/20151 answer

1 Answer

F

Faisal Khan

Answered 01/Jul/2015

There can be many reasons for this, best to ask your bank.

Some points that come to mind:

  • The intermediary bank require more KYC on you.
  • The amount being transmitter is higher than the intermediary's limits set for first time users, and hence would require additional information from you on the source of funds and/or the reason for the transfer.
  • If your name is flagged in any database, you will not be notified, it would be against AML training to notify the client. So it could be that, but I doubt it.
  • The name off the beneficiary was flagged, this happens a lot, and they might require additional information on the beneficiary, to be sure, it is not the same person who is in their soft-flag database.
  • The transaction purpose is missing in the wire transfer
  • The correspondent bank requires additional information which was not sent by the originating bank
  • You have breached your wire limit (if any) set by the originating bank
  • The recipient bank is flagged or the branch is flagged.
  • The recipient bank account number is flagged.