What Happens When a Beneficiary Bank Rejects a Transfer
When a SWIFT transfer reaches the beneficiary (receiving) bank, that bank runs its own checks before crediting the funds. If something does not meet requirements, the bank returns the transfer with a reason code. The funds go back to the sender, but this process can take anywhere from a few days to several weeks.
Why the Beneficiary Bank Rejects the Transfer
Sanctions against the sender or their bank. If the beneficiary bank operates in a jurisdiction with strict sanctions requirements (US, EU, UK), it will refuse to credit funds from sanctioned entities.
Incorrect details. A mismatch between the recipient name in the SWIFT message and the account holder name is one of the most common reasons. Also: wrong account number, IBAN, or branch SWIFT code.
Account closed or frozen. If the recipient's account was closed after the sender received the details, the transfer is automatically returned.
Currency mismatch. If the account is denominated in one currency but the transfer arrives in another, and the bank does not support automatic conversion, the transfer will be rejected.
Missing required field in the SWIFT message. Some banks require specific fields to be filled (payment purpose, reference number) and reject transfers that omit them.
Bank limits. Some beneficiary banks have limits on the size of incoming transfers from foreign banks.
What to Do
Get the return code from the sending bank. SWIFT returns come with reason codes (e.g., AC01 — incorrect account, BE01 — data mismatch). These codes pinpoint the exact cause.
Contact the recipient. Confirm the current account details — especially if time has passed since you first received them.
Review the transfer details. Check every field of the SWIFT message: beneficiary name, IBAN, SWIFT/BIC, recipient address, payment purpose.
Ask the beneficiary bank about their requirements for incoming transfers. Some banks require advance notification of large incoming transfers.
Consider alternative routing. If the bank systematically rejects transfers from your country, it may be worth using a different correspondent bank or payment service.
Request a return. If the situation cannot be corrected, ask the sending bank to expedite the return of funds — this process sometimes requires manual initiation.
FAQ
How long does it take to get a rejected SWIFT transfer back? Usually 3–10 business days from the moment of rejection. In complex cases involving multiple correspondents — up to 30 days.
Will the full amount be returned or will the bank keep a fee? The beneficiary bank typically returns the full amount. However, the correspondent bank or sending bank may retain a processing/return fee — the terms depend on the agreement in place.
How do I avoid a repeat rejection? Before resending, confirm with the recipient that the account is active and the details are correct. Ask the sending bank to verify that all fields in the SWIFT message are filled in correctly.
If your SWIFT transfer is stuck or was rejected, Marix can help you find a reliable route for international settlements.