The Cross-Border Credit Transfers Regulations 1999

Failed transfers: obligations of intermediary institution

10.—(1) If an originator’s institution becomes liable to make a payment pursuant to—

(a)regulation 9(2), or

(b)a provision of the law of an EEA State other than the United Kingdom corresponding to regulation 9(2),

any intermediary institution which has agreed to participate in the carrying out of the relevant transfer and which has received the funds transferred to it shall, subject to paragraphs (3) and (5), be liable to credit by way of refund to the institution which instructed it to participate in the carrying out of the relevant transfer the amounts specified in paragraph (2).

(2) The amounts referred to in paragraph (1) are the following—

(a)(i)12,500 euro or, if funds were transferred to the intermediary institution in an EEA currency other than euro, its equivalent in that other currency, or

(ii)the amount of the funds so transferred,

whichever is the less; and

(b)any amounts representing charges, commissions, fees or interest payable to the originator by the originator’s institution pursuant to regulation 9(2) or, as the case may be, a provision of the law of an EEA State other than the United Kingdom corresponding to regulation 9(2).

(3) An intermediary institution shall not be liable to make a payment pursuant to paragraph (1) if the failure of funds to be credited to the beneficiary’s institution was caused by an error or omission in the instructions given to the intermediary institution by the institution which instructed it to participate in carrying out the transfer; but in that case, or if the failure was caused by—

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

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

the intermediary institution shall use all reasonable endeavours to trace and recover the funds.

(4) Any amount recovered by an intermediary institution pursuant to paragraph (3) shall be refunded to the institution which instructed it to participate in carrying out the transfer, after deduction, in a case referred to in paragraph (3)(a) or (b), of all reasonable costs incurred by it in effecting that recovery which are specified by it in writing at the time of the refund.

(5) An intermediary 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 another intermediary institution, nominated by the beneficiary’s institution, to perform its part of the transfer.

(6) Any amount paid by an intermediary institution pursuant to paragraph (2)(a) shall be taken into account in determining any other liability which that intermediary institution might have to the institution which instructed it to participate in carrying out the transfer in respect of the failure to credit the funds to the beneficiary’s institution.