What are the reasons for remittance failure?

There may be multiple reasons for remittance failure, usually involving information errors, account issues, regulatory compliance, etc.

Here are some common situations that lead to bank remittances being returned:

1.Payee information error

• Account number error: If the recipient’s account number provided is incorrect, the bank cannot complete the remittance.

• The recipient’s name does not match: If the recipient’s name does not match the bank account registration information, it can also lead to the remittance being returned.

• Bank code error: for example, SWIFT code or IBAN number is filled in incorrectly.

2.Payee account issues

• Account Closure: The recipient’s account has been closed or frozen.

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

3.Remittance amount issue

• Remittance amount exceeding 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 limit large remittances or require special approval.

4.Compliance and Anti Money Laundering Review

• Anti Money Laundering regulations: If the source of funds involved in the remittance is unclear or involves suspicious transactions, the bank may return the remittance during the Anti Money Laundering review.

• Sanction and blocklist: The payee or remitter is involved in the sanction list or blocklist.

5.Lack of necessary additional information

• Insufficient post script or note information: Some remittances require specific note information to be attached. If this information is missing, the remittance may be returned.

• Lack of necessary documents: For example, when transferring money, documents such as invoices or contracts are required, but they are not provided or do not meet the requirements.

The situation of remittance failure usually involves various factors such as information errors, account issues, compliance review, etc. 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 is returned, the bank or remittance institution should be contacted in a timely manner to understand the specific reasons and take corresponding measures to ensure the smooth progress of the remittance.