UAE: 3 Steps to Avoid Accountability for Mistaken Bank Deposits

Banking expert Awatif Al Harmoudi outlined three essential steps for bank customers to follow when they find themselves in possession of financial deposits made in error or from an unknown source.

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Al Harmoudi emphasized the importance of promptly informing the bank about any mistakenly deposited funds and clarifying that they do not belong to the account holder. This initial action triggers the bank's involvement in investigating the origin of the deposit, especially if it resulted from an error during a financial transfer or incorrect data input.

The second step underscores the customer's responsibility to refrain from utilizing the mistakenly deposited funds. Doing so could render the account holder accountable for any misappropriation, especially if they are aware of the source or have a connection to the sender. Instead, by promptly notifying the bank and abstaining from using the funds, the customer fulfills their obligation, allowing the bank to proceed with the necessary procedures.

The recipient bank is primarily responsible for the third stage, which requires internal verification of the transaction information. This entails validating whether the transfer took place between their own customers' accounts or getting in touch with the sending bank to verify the sender's identity and purpose. The recipient bank then determines whether to manage the funds in accordance with legal procedures or refund them to the sender based on this verification.

Al Harmoudi stressed the significance of adhering to laws and regulations set by the Central Bank to ensure transparency in financial transactions. Compliance with these regulations involves verifying the source of funds, ensuring rightful ownership of transfers, and refraining from exploiting erroneous balances. Al Harmoudi's guidance underscores the importance of proactive communication with the bank, abstaining from unauthorized use of mistakenly deposited funds, and allowing the bank to conduct necessary verifications and actions in accordance with regulatory requirements.

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