Fraudulent Wire Transfer and Funds Return

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Question:

Is the bank that receives a wire transfer under any legal obligation to return the funds to the sending bank if the sending bank reports that the wire was fraudulent?

Answer:

There is no obligation to do so as wires are final upon acceptance by the receiving institution, but most banks do try to walk in the other bank's shoes and do what they can to assist in the recovery. They would hope for the same if the shoe was on the other foot.

First published on BankersOnline.com 1/10/11