I've received a customer request for more information. They are stating that the beneficiary did not receive the funds. I submitted service messages to our correspondent bank asking for the date and amount credited to the Beneficary. Today, I received a message from our correspondent stating: PAYEE HAS NOT RESPONDED TO MESSAGES SENT ON YOUR BEHALF. WOULD SUGGEST BNF CONTACT THEIR BRANCH TO TRACE FROM THAT END.

Nothing in the dispute resolution guidance states what to do if the Beneficiary Bank doesn't respond to the request. Has anyone else had something like this? Or would anyone care to opine as to what I should do next?

We have a similar situation on our hands as well. The Beneficiary is telling the Originator (our customer) that they have not received the funds yet. We have sent 3 service messages via our correspondent bank and have not received a reply.

We can prove that our correspondent bank send the funds to the correct SWIFT Code, referencing the correct Beneficiary account number. But, if the Beneficiary Bank never responds, I'm not sure if that information alone is going to be solid enough for us to state that no error occurred. I would hope that an examiner would look at all that we did to attempt to contact the Beneficiary Bank and the evidence we have showing we sent the money as instructed by the Originator, and determine that we acted in good faith and did all we could to resolve the situation for the Originator.

We're planning on sending a service message every 2 weeks until our 90-day investigation period is up. If we haven't received a response at that time...I'm not really sure what we're going to do. Sorry I can't be more helpful. If you run across any guidance or other info, please share it!

I know this is an old thread, but hoping someone can show me what I'm not seeing in the Reg.

We are also dealing with this type of situation: can't reach the receiving bank to confirm anything. We do know that the wire was sent to the bank and account specified by our sender.

Isn't it odd that subpart B doesn't have any language to the effect of 1005.11 (c)(4):

"Investigation. With the exception of transfers covered by § 1005.14 of this part, a financial institution's review of its own records regarding an alleged error satisfies the requirements of this section if:
(i) The alleged error concerns a transfer to or from a third party; and
(ii) There is no agreement between the institution and the third party for the type of electronic fund transfer involved."

It seems to me that the Reg puts responsibility on the provider for actions taken or not taken by the receiving bank. All of the text I can find about things beyond the control of the provider are in reference to acts of natural disaster etc., not about the receiving bank failing to properly credit an account. It would make sense to me that the provider should only be required to check their own records to ensure the transfer was sent as specified by the sender. I'm missing something very obvious, right?

The regulation makes the provider accountable to the Sender for an error anywhere in the chain all the way to the receiving bank. Any ability of the provider to recover funds from those along the chain is dependent on the agreements (if any) between them. Chances are, you'll have some sort of contract with your correspondent, and it will have a contract with another correspondent, etc..

Thank you John.