What are the procedures that are expected to be followed when it is determined that an incorrect account number was provided by the sender on a remittance transfer?

Are you the sender or receiver?

Sender

Request a recall. If the money isn't gone, you will probably have to send some sort of indemnification to the receiving bank.

If you made the transfer based on the specific customer orders - you are going to be in the clear.

If the bank made the mistake, the bank is going to be on the hook for all losses.

Ok, thanks. Is any customer notification required in any of the scenarios you listed?

Customer notification? I take it is was the bank's fault? Yes, I would be contacting them before the people that were suppose to receive the payment does. Depending on the amount, I would be first getting your legal counsel involved.

It's certainly possible to make a mistake with an account number, but given the mathematical formulas used in generating account numbers, it is less than likely that a mistake would actually generate a valid account number at the other bank.

My experience with this is not recent, so I'll accept correction pretty easily.

Well, if it didn't hit a valid account, the wire should have been returned.

There are many ins and outs found in UCC 4A; as such, my suggestion to contact legal counsel was made. The larger the amount, the more important that recommendation becomes and they need to get involved pronto.

There are many working parts and while generalizations may apply, without all the specifics, there is no way to tell who really is going to be on the hook if the funds are gone.

Yes, wire was returned (due to incorrect account number). Funds were re-sent with correct number.