The Cross-Border Credit Transfers Regulations 1999

Failed transfers: obligations of originator’s institution

9.—(1) The originator of a relevant may, at any time after the end of the period specified in regulation 6(2) when the funds to be transferred to the beneficiary have not been credited to the beneficiary’s institution, request a refund of the amount referred to in paragraph (4)(a).

(2) Subject to paragraphs (5) and (7), if—

(a) the originator requests a refund pursuant to paragraph (1), and

(b) the funds to be transferred have not been credited to the beneficiary’s institution before the end of the period specified in paragraph (3),

the originator’s institution shall, before the end of that period, make available to the originator the amounts specified in paragraph (4).

(3) The period referred to in paragraph (2) is the period of fourteen business days beginning with the first business day after the date of the originator’s request made pursuant to paragraph (1).

(4) The amounts referred to in paragraph (2) are the following—

(a) (i) 12,500 euro or, if the amount to cover the funds to be transferred was made available to the originator’s institution in an EEA currency other than euro, the equivalent of 12,500 euro in that other currency, or

(ii) the amount (the “relevant amount”) so made available,

whichever is the less;

(b) an amount equal to interest calculated by applying the reference interest rate to the relevant amount for the period from—

(i) the commencement date, to

(ii) the date upon which the amount referred to in sub-paragraph (a) is made available to the originator; and

(c) the amount of any charges, commissions and fees relating to the relevant transfer paid by the originator.

(5) An originator’s institution shall not be liable to make any amounts available pursuant to paragraph (2) if the failure of funds to be credited to the beneficiary’s institution was caused by—

(a) an error or omission in the instructions given to the originator’s institution by the originator, or

(b) the failure of an intermediary institution nominated by the originator to perform its part of the transfer,

but instead shall use all reasonable endeavours to trace and recover the funds.

(6) Any amount recovered by the originator’s institution pursuant to paragraph (5) shall be refunded to the originator, after deduction of all reasonable costs incurred by it in effecting that recovery which are specified by it in writing at the time of the refund.

(7) An originator’s institution shall not incur any obligation or liability under this regulation if the failure of funds to be credited to the beneficiary’s institution was caused by the failure of an intermediary institution nominated by the beneficiary’s institution to perform its part of the transfer.

(8) Any amount paid by an originator’s institution pursuant to paragraph (4)(a) shall be taken into account in determining any other liability which the originator’s institution might have to the originator in respect of the failure to credit the funds to the beneficiary’s institution.