Question: Regarding incoming wire transfer reversal requests received over the fedline terminal the same day or subsequent day: assuming the funds are still available in the credit account, are we required to seek authorization from the crediting customer before withdrawing the funds? What are our obligations if the funds are no longer available?
Answer: Wire transfers are final payments once received. If the payment has not yet been credited to your customer’s account and was clearly sent in error (name/account number mismatches, for example), you could probably return the transfer without obtaining your customer’s permission. If the funds have been credited to your customer’s account correctly, you must obtain your customer’s permission before returning the funds.
If the funds are no longer available in your customer’s account, you should advise the ODFI that the return
cannot be made, and leave the matter between your customer and the originator.
The original version appeared in the September/October 2004 edition of the Oklahoma Bankers Association Compliance Informer.
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