What Is a Correspondent Bank Block
A correspondent bank is a bank through which international transfers pass between two banks that have no direct correspondent relationship. Typically this is a large international bank (JPMorgan, Deutsche Bank, Citibank) that holds accounts in both currencies and licences in both jurisdictions.
A block by a correspondent occurs when the bank refuses to forward the payment — unlike a hold, a block means a complete refusal followed by a return of funds.
Why a Correspondent Bank Blocks the Transfer
Sanctions requirements. US correspondent banks are required to comply with OFAC requirements even if the transaction does not directly involve the United States. Any connection to sanctioned entities leads to a block.
De-risking. Large correspondent banks, as part of risk management, decline to work with entire categories of banks (by country, size, or licence type). If your sending bank has been de-risked, your transfer will be blocked.
BSA/AML compliance failure. Insufficient information about the payment (Know Your Customer's Customer — KYCC) can be grounds for a block.
Technical non-compliance. Incorrect SWIFT message format, invalid characters in fields, outdated BIC — all of these can trigger an automatic block.
Country risk. Transfers towards high-risk countries (even non-sanctioned ones) may be blocked as part of correspondent risk management policy.
What to Do
Request the SWIFT response with the block code. Ask your bank to provide the MT199 or MT299 — administrative SWIFT messages specifying the reason for the block.
Identify the transfer route. Find out which correspondent bank your transfer goes through and confirm whether your sending bank has been placed on that correspondent's de-risking list.
Ask your bank to reroute the transfer. Many banks have multiple correspondent routes for the same destination — an alternative path may resolve the problem.
Consider using payment hubs. Specialist payment companies have direct relationships with correspondent banks and can route transfers around a problematic link.
Look at alternative systems. SEPA (for euro within Europe), regional settlement systems, or regulated stablecoin channels can be alternatives to SWIFT in complex situations.
FAQ
How long does a return take when a correspondent bank blocks the transfer? Usually 5–15 business days. If an investigation or additional checks are needed — up to 30 days.
Can I complain about the correspondent bank's actions? Not directly, since you have no contractual relationship with them. A complaint goes through your sending bank, which can send an enquiry or approach the regulator.
What is de-risking and how does it affect ordinary customers? De-risking is the practice of large banks refusing to work with banks or countries they consider high-risk. Customers of those banks encounter blocked transfers without violating any laws themselves.
If your transfer has been blocked by a correspondent bank, Marix can help you find an alternative route for safe international settlements.