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#624662 - 10/13/06 02:25 PM Wire Transfer Confirmatios
dmcnamara Offline
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Our wire department sends out confirmations by mail to our customer for any incoming and outgoing wires? I can't think of any reason why this is necessary. This is an expensive process. I can see sending cofirms on repo accounts but not wires?
Am I overlooking something?

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#624663 - 10/13/06 07:27 PM Re: Wire Transfer Confirmatios
RDS Offline
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Right or wrong we don't do that. we are a small community bank and we check the sender and receiver against the OFAC list and put their CIP information on the wire log (which is kept on a spread sheet).

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#624664 - 10/16/06 10:06 PM Re: Wire Transfer Confirmatios
HappyGilmore Offline
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Pulling people out of the ditc...
their statement is sufficient for wire notice. If they require additional information, you can get it to them based on a request they make. If you have an internet banking product, the wire can be delivered there.
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#624665 - 10/17/06 08:58 AM Re: Wire Transfer Confirmatios
Elwood P. Dowd Offline
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Check out your state's version of UCC Article 4A. The model version contains requirements for notifying wire recipients if the wire is sent for credit to a specific account number. The wire's appearance on a subsequent periodic statement would not suffice. Notice requirements can be revised by contract.

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#1178530 - 05/07/09 08:40 PM Re: Wire Transfer Confirmatios Elwood P. Dowd
morirse de risa Offline
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I'm fairly new to audit & compliance in my bank. OCC recommended that we send written wire confirmations for all outgoing customers. Is this a requirement somewhere? Or does it vary state by state? I cannot find that this is a requirement in my state's UCC4A...but maybe that's because it's not the easiest thing to read.

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#1178711 - 05/08/09 04:15 AM Re: Wire Transfer Confirmatios morirse de risa
rlcarey Online
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I am unaware of any notification requirements on an outgoing wire. They should already know about it - they ordered the dang thing.
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#1179206 - 05/08/09 03:51 PM Re: Wire Transfer Confirmatios morirse de risa
Elwood P. Dowd Offline
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Quote:
OCC recommended that we send written wire confirmations for all outgoing customers.


Assuming that it was not mentioned in the written report, call your EIC and ask "Why?"

Banks have been defrauded by acting on faxed or telephoned wire instructions, but sending the notice after that fact is not going to do much in the way of prevention; i.e. there are other internal controls that would work better.
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#1180096 - 05/11/09 01:31 PM Re: Wire Transfer Confirmatios Elwood P. Dowd
morirse de risa Offline
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Since this was only a "recommendation", we will more than likely accept any risk involved with not sending a confirmation. I feel we do have good controls in place for wire transfers.

Thank-you both for your input!

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#2267911 - 03/18/22 07:31 PM Re: Wire Transfer Confirmatios dmcnamara
Norman Paperman Offline
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13 years later and this has been resuscitated.

If my state has the below language UCC comment:

"A beneficiary has the right to be notified of the receipt of a payment order. This notice must be given by first-class mail or by other reasonable means. A funds transfer system rule may vary this right if the beneficiary is notified of the rule before the initiation of the transfer but the rule may not vary the damages for failure to notify."

Would you opine that a notice within the wire transfer agreement stating that such confirmation is available upon request suffice?

or

Could we notify and begin a procedure of notifying the beneficiary via email?

Trying to get away from the paper form sent snail mail.
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#2268212 - 03/25/22 02:54 PM Re: Wire Transfer Confirmatios Norman Paperman
Norman Paperman Offline
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Respectfully bumping this one.
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#2268213 - 03/25/22 03:07 PM Re: Wire Transfer Confirmatios dmcnamara
rlcarey Online
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I see nothing in that passage that allows for notification upon request. These would be incoming wires - how would you have a wire transfer agreement signed by customers for incoming wires?
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#2268243 - 03/25/22 07:29 PM Re: Wire Transfer Confirmatios dmcnamara
Norman Paperman Offline
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You've made a good point here about the wire transfer agreements for beneficiaries. We may and may not have one depending on if they send out as well.

What about language in the account agreement? Surely there are other institutions that have found a way to avoid the snail mail notification.
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#2268246 - 03/25/22 08:49 PM Re: Wire Transfer Confirmatios dmcnamara
rlcarey Online
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"A funds transfer system rule may vary this right if the beneficiary is notified of the rule before the initiation of the transfer but the rule may not vary the damages for failure to notify."

That refers to a wire transfer system rule and not an agreement with the customer. This is really something on which you need to sit down with your legal counsel. It is hard to make any judgements based on a snip of the UCC when we have no idea what State you are in. Does your UCC otherwise allow any variation by agreement and does it cover this section, for an example? Since this specifically talks about damages, not getting this correct might be rather costly under certain circumstances..
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