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  1. #1

    Default Recovering Funds After a Problem With an International Wire Transfer

    Hello,

    I have an issue with a wire transfer which doesn't seem either fair or legal, from my point of view, but I want to check the legal part with someone entitled.

    I made an international bank transfer to a bank in China, in USD. The initial mistake from where all started, was the fact that the recipient name had a very very long name and my banking app has a character limit for this, so I filled in basically the entire recipient name (very long) without the Co,Ltd. at the end. I didn't think this will be a problem.

    Anyway, after one week of not receiving the money, my recipient checked with the bank and they actually received my transfer in the very next day but because in China the banks require that recipient name match exactly the name of the account holder, they didn't put the money in the recipients account. Ok, fair enough, I understand this.

    The problem was that they neither rejected the transfer nor announced any of the parties. So basically they just kept the money and if my recipient wouldn't check with them, they wouldn't say or do anything about that. So because of these, I have a delay with the payment and I have to pay some fees to my recipient because of this. But anyway, this is the consequence of what happened.

    What I want to know is, if it is legal what they did because I guess there are international laws to which all the banks from anywhere in the world have to join and obey.

    Thank you for taking the time to read my post.

  2. #2
    Join Date
    Oct 2016
    Posts
    2,671

    Default Re: A Wire Transfer Mistake and the Following Events

    Quote Quoting adrian.jecan
    View Post

    What I want to know is, if it is legal what they did because I guess there are international laws to which all the banks from anywhere in the world have to join and obey.
    Had this been a US -> US transaction the receiving bank would have either figured it out in a timely manner or rejected the wire back to your bank. But a bank in China is going to do pretty much what it wants to do or what they think their government will allow thrm to do.

  3. #3
    Join Date
    Feb 2008
    Posts
    1,100

    Default Re: A Wire Transfer Mistake and the Following Events

    Once the money hit China, I doubt you have much of a case since you admit that you didn't put in the full name.

    What I would suggest is if the amount is large enough that you not do a wire through an app but rather go into your bank itself and make sure it is done correctly. It is possible that a bank employee could have told you the law in China, possibly. In the end though you are responsible because the payee was incorrect. If doing business with someone in China, it's best to research these types of things vs assuming "I didn't think this will be a problem."

    Luckily you now know and can do it differently/correctly in the future...

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