Have you tried transferring money to someone and you mistakenly mixed up the account digits and you ended up sending money to someone else whom you do not even know?
Well, I found myself in that situation yesterday when I wanted to transfer money to my staff and I mixed up the digits and I ended up transferring money to a total stranger. That got me thinking about what laws/ regulations have been put in place to cater for situations such as this.
The Central Bank of Nigeria definitely knows that human beings are prone to error, so the chances of making mistakes during electronic transfers are high. They therefore introduced a Regulation for Instant Electronic Transfer Funds (EFT) Services in Nigeria in September 2018. This regulation of the CBN captured every error or mistake that could occur during electronic money transfer and they issued guidelines/ procedures on how affected persons; ie persons who made some mistake during electronic money transfer like sending the above figure and want a refund or sending money in error to other persons and want a refund or a failed transfer and want a reversal etc.
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According to this CBN guidelines, when a person mistakenly sends money to another person, the apex bank suggests that if the sender knows the receiver or can find out who the receiver of that erroneous transfer is, the sender should reach out to that recipient and negotiate for the refund but if the beneficiary is unknown to the sender, the sender should quickly contact his bank (which is the sending entity) and make a complaint of the erroneous transfer and the Sending Entity having received the complaint from the Customer will notify the receiver’s bank which is the Receiving Entity. Upon the notification, the Regulation provides that the Receiving Entity i.e. the receiver’s bank should immediately place a lien on the said amount in the account of the beneficiary and thereafter obtain the consent of the beneficiary to execute a refund back to the sender.
I have also heard of scenarios where a receiver of an erroneous transfer, with criminal intent, quickly withdraws all the money from his account and empties his account so that a reversal cannot be executed by his bank. The CBN in its wisdom also covered this ground in their regulatory guideline. The guideline also provides that when the funds are no longer available in the receiver’s account, the receiver’s bank should immediately notify its Customer about the transaction. The Receiving Entity is also legally obligated to charge the customer to fund the account so that the reversal can be executed and they are to also notify the Customer about the consequences of not funding the account within 24 hours, which is the attraction of sanctions and reporting the customer to the law enforcement agencies.
So according to the 2018 CBN regulatory guidelines on Electronic money transfer, if you erroneously transfer money to the wrong person, you are to reach out to the person (if that is possible) and negotiate your refund with the person but if it won’t be possible for you to reach out to the receiver, quickly contact your bank and lay the complaints with the prove of the transaction, your bank will then contact the receiver’s bank (when the receiver uses a different bank from the sender), the receiver’s bank will then execute a refund back to the sender with the consent of the receiver.
No doubt that it is not as easy as written here, it takes days, time and a lot of back and forth for all these to be executed but these are the statutory steps to be taken when you find yourself in such a situation and you want your money back.