What are the reasons for remittance failure?

There may be many reasons for remittance failure, usually involving information errors, account issues, regulatory compliance, etc. The following are some common situations that cause bank remittances to be returned:

1、Payee information error

Account number error: If the payee account number provided is incorrect, the bank cannot complete the remittance.

Payee name mismatch: The payee name does not match the bank account registration information, which will also cause the remittance to be returned.

Bank code error: For example, the SWIFT code or IBAN number is filled in incorrectly.

2、Payee account issues

Account closed: The payee’s account has been closed or frozen.

Account type not supported: The payee’s account type does not support receiving this remittance, for example, some savings accounts may not support international remittances.

3、Remittance amount issues

Remittance amount exceeds limit: The remittance amount exceeds the limit set by the bank or account.

Policy restrictions: Some countries have strict controls on foreign exchange transactions, which may restrict large remittances or require special approval.

4、Compliance and anti-money laundering review

Anti-money laundering regulations: The source of the funds involved in the remittance is unclear or involves suspicious transactions, and the bank may return the remittance during anti-money laundering review.

Sanctions and blacklists: The payee or remitter is involved in sanctions lists or blacklists.

5、Missing necessary additional information

Insufficient message or note information: Some remittances require additional specific note information, and if this information is missing, the remittance may be returned.

Missing necessary documents: For example, the remittance requires providing invoices or contracts, etc., which have not been provided or do not meet the requirements.

Remittance failure situations usually involve multiple factors such as information errors, account issues, and compliance reviews. During the remittance process, ensuring that all information is accurate and complies with relevant regulations can reduce the risk of remittance being returned. If a remittance return occurs, you should contact the bank or remittance institution in a timely manner to understand the specific reasons and take corresponding measures to ensure the smooth progress of the remittance.