CBN outlines steps to recover money sent to wrong bank account

The Central Bank of Nigeria has set out procedures banks must follow when a customer sends money to the wrong bank account. The rules sit in the CBN Regulation on Instant (Inter-Bank) Electronic Funds Transfer Services, and they cover customer mistakes, bank errors and fraudulent transactions.

Customers should report the transfer immediately. Recovery is not automatic. The availability of funds, the beneficiary's cooperation and the dispute process determine whether the money returns.

What the CBN rule requires

Under Section 10.4, a customer who mistakenly transfers money must first notify their bank. If the recipient is known, the sending bank should encourage the complainant to seek an amicable refund. If the recipient is unknown or refuses to refund, the sending bank must notify the receiving bank after establishing that the complaint is credible.

The receiving bank must place a lien on the disputed amount where funds are available. It must also seek the beneficiary's consent for a reversal. The lien temporarily restricts the money while the banks investigate.

Two-week mediation and BVN watch-list

If the beneficiary refuses to authorise a refund, Section 10.4.3 requires internal auditors of both financial institutions to mediate within two weeks of the complaint. The lien should not remain in place beyond two weeks under this procedure. Where the recipient has spent the money and refuses to replenish the account, the receiving institution's auditors must watch-list the customer's Bank Verification Number. The sending institution may also report the matter to law enforcement agencies.

Steps for affected customers

Affected customers should contact their bank immediately through official customer service channels. They should provide the receipt, transaction reference, amount, date and beneficiary account details. They should ask the bank to initiate a formal interbank recall and obtain a complaint reference. They should keep records of correspondence and follow up.

If the bank fails to resolve the complaint within the applicable regulatory timeline, the customer can escalate to the CBN. The CBN complaints management guidance says customers should first approach their financial institutions and generally allow two weeks for resolution before escalating. A 2011 circular directed banks to establish dedicated complaint-handling channels and report unresolved cases. Customers can escalate qualifying complaints to the CBN Consumer Protection Department with transaction evidence and proof of earlier complaints.

The steps apply to transfers through banks and other regulated payment institutions, subject to the relevant transaction arrangements. For Nigerian businesses and consumers, the lesson is to report mistaken transfers immediately instead of assuming the money is gone.