Bank acted correctly over international transfer that went missing

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Bank acted correctly over international transfer that went missing

Categories:

Processing payments, Telegraphic transfers,

Summary:

Bert made an international money transfer of $75,000 from his New Zealand bank account to an account at his bank in the United Kingdom. The payment was never received, so he contacted his New Zealand bank and asked it to trace the missing funds. The bank contacted the intermediaries used to process the payment. The bank failed to keep Bert up to date about progress, forcing him to repeatedly call for any news. After 55 days, the funds were returned to his New Zealand bank account. Bert complained that the bank failed to execute his instructions and should be responsible for every step of the transfer, including the actions or inaction of the intermediaries.

Published:

August 2024

The bank looked into his complaint but concluded it had executed the payment correctly. However, it acknowledged it had not kept Bert adequately informed about efforts to find his money and offered him $500 compensation. Bert declined the offer and came to us.

Our investigation

Bert gave the bank information provided by his bank in the United Kingdom giving first one reason then another for the money not appearing in his account. Initially, it said the funds were never sent, but later it said the funds did arrive but weren’t accompanied by the account details of the intended recipient. However, the bank’s records showed the funds were sent, and were accompanied by the correct recipient account details. We found the bank made no error when processing the transaction. In addition, the bank’s terms and explicitly excluded any liability for the actions – or inaction – of intermediaries used in processing international money transfers.