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    tulip123's Avatar
    tulip123 Posts: 5, Reputation: 1
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    #1

    Jan 5, 2018, 10:02 AM
    Wire transfer - compliance issues
    I bank with Royal Bank Canada, Toronto. For a condo closing deal, I had to get some money wired from my father from India to my bank account in Canada. The amount required was 30000 CAD. This is equivalent to around 1500000 INR. He had around 400000 INR in his account. I had around 550000 INR in my Indian account, which I transferred to his account. My friend and some of our relatives transferred the rest of the money to his account and a total of 1520000 converted to CAD 30000 was sent to my royal Bank account Canada. My father received a confirmation from SBI Kolkata (foreign department SBI), with all the details (date, transaction references, amount, beneficiary bank details and every possible information) and the money was sent on the 26th of December 2017. The money never reached Royal Bank, though the money was deducted from my dad's account. On the 2nd of January, SBI, India received a message from the intermediary bank (which was the Bank of Montreal), that the transaction was declined for compliance reasons. the money got credited back to my Dad's account. I cannot close this deal without this money reaching my Canadian bank account. I already had informed Royal Bank that I was expecting a wire transfer and they were checking everyday to see this transfer coming in. However, this transaction never reached Royal Bank. They did the best possible investigation - they called the wire department, global payment desk and every escalation channels only to find out that there was no transaction that they received or they declined. I even went to the intermediary bank - Bank of Montreal, however they were not of much help, and they couldn't get me any information regarding this transaction. I went back to state Bank of India and they were not able to help me either. They are very sure that they sent the money, and they in fact gave me a document confirming that the money was sent from the Kolkata branch. Royal Bank and state bank of India again and again verified all the information (bank details, swift code, personal information etc.) and confirmed that all the details are correct. I am really in a very bad spot right now, because I am not able to close my deal without this money and the lender would not agree any other source other than this gift transfer from my father. Is there a possibility that this has to do something with AML compliances? If that's the case, why is it that it never reached RBC Canada? I have a pretty good banking history. Even if it is an AML compliance issue, I am wondering as to which level the rejection happened? It doesn't look like RBC rejected the transaction. And SBI confirms that they sent the money. Is it possible that the issue was at the source bank? Is it possible for an intermediary to go back to the source bank to check where the funds arrived from? However, in this case the intermediary is a bank outside of India. Please help me with this. I am really in a very bad situation by not being able to close my purchase. Thanks in advance.
    joypulv's Avatar
    joypulv Posts: 21,593, Reputation: 2941
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    #2

    Jan 5, 2018, 12:49 PM
    WOW. I feel for you! I doubt that anyone here will know the answer.
    All I can say is that EVERY step of a wire transfer I have ever done needed authorization from the sending individual(s), and in my case, they required my physical presence. Since I wouldn't go that far, I had to deposit a huge amount in the bank near me before I could set up a bank wire. We can't know what was required and what was missing.

    You say 'The money never reached Royal Bank, though the money was rejected from my dad's account.' That makes a confusing story even more so - do you mean withdrawn?

    Good luck getting your money SOON.

    I recently did two big wire transfers in one day. One bank sent the funds, the other bank required a contact back from the place getting the funds, and they didn't do so, so it was delayed....
    Each place may have policy of their own!
    tulip123's Avatar
    tulip123 Posts: 5, Reputation: 1
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    #3

    Jan 5, 2018, 01:59 PM
    Thank you.


    You say 'The money never reached Royal Bank, though the money was deducted from my dad's account.' That makes a confusing story even more so - do you mean withdrawn? I meant deducted from my dad's account. Sorry it was a typo. Would it make a difference if my father try and send it through another financial institution?
    joypulv's Avatar
    joypulv Posts: 21,593, Reputation: 2941
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    #4

    Jan 5, 2018, 02:30 PM
    You said REJECTED. DEDUCTED would have been fine. Glad that is cleared up.

    No one should be doing a thing until the money is found!
    tulip123's Avatar
    tulip123 Posts: 5, Reputation: 1
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    #5

    Jan 5, 2018, 02:36 PM
    The money got credited to my dad's account. The issue is that, I won't be able to close the deal until this money comes through. The lender is very particular that this money comes as a gift from an immediate family member and from no one else.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,303, Reputation: 7691
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    #6

    Jan 5, 2018, 06:06 PM
    It happens sometimes that transfers don't work and the money is returned back to the first bank, where it was sent from.

    Normally it happens if there is an error in a number typed in or some incorrect bank codes used for wire transfers, I send money by wire to
    China every month and once in a while, one does not make it, I have to request the money returned. Wire transfers are normally safe and the money is returned.

    So in general the bank will investigate why it did not go though, your bank can contract the other bank directly by phone and work out a new transfer.
    tulip123's Avatar
    tulip123 Posts: 5, Reputation: 1
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    #7

    Jan 8, 2018, 09:01 AM
    Thanks Fr_Chuck. Unfortunately I am dealing through a bank who has such laid back approach and they are least interested in giving any sort of explanations or contacting the intermediary bank. I have a close friend of mine who works at a higher post with state Bank of India (sender bank), and she did some investigation on this, and got to know that the intermediary bank had come back to the sender bank asking for a clarification on the date of birth and last name of my father. However, the sender bank never informed my father on this. The transaction got declined. I don't have the courage to send the money through the same bank again. I am trying to see if it can be sent through UAE exchange which is a private financial firm approved for money transfers. There is a lot of delay being caused; my transaction is still not sent from India. And I have only one day left to complete this transaction, else I won't be able to close the deal again. :( :(
    smoothy's Avatar
    smoothy Posts: 25,495, Reputation: 2853
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    #8

    Jan 8, 2018, 10:28 AM
    That definitely a compliance issue related to international money laundering laws... and someone did drop the ball as you said. I can imagine how frustrating that is.
    tulip123's Avatar
    tulip123 Posts: 5, Reputation: 1
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    #9

    Jan 9, 2018, 02:32 PM
    Thanks everyone for your inputs. My father sent another transaction through a different bank, and the money came in today.. :)

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