Order No. 17415 of 2024: Banking Liability and IBAN Code Indication

The liability of banks in case of erroneous operations, such as in the case of wire transfer payments, is a matter of great importance in banking law. Order No. 17415 of June 25, 2024, issued by the Court of Cassation, offers important clarifications on this aspect, particularly regarding the obligation of banks to ensure the correctness of operations requested by their clients.

Regulatory and Jurisprudential Context

The order is part of a well-defined regulatory framework, where the responsibilities of banks are outlined by the Civil Code. In particular, Articles 1218, 1173, and 1176 establish that banks are required to operate with the required diligence, according to the principles of correctness and good faith. These principles are fundamental to ensuring the security of banking operations, especially when using electronic instruments.

In this specific case, the issue arose due to an incorrect IBAN code indication by the client. The Court clarified that, if the beneficiary does not receive the payment due to such an error, the bank bears the burden of proving that it carried out the operation correctly. This principle is based on the theory of qualified social contact, which recognizes the bank's responsibility in ensuring the correct execution of operations.

The Ruling's Headnote

NOTIONS, CHARACTERISTICS, DISTINCTIONS - BANK'S OBLIGATIONS Operations carried out via electronic instruments - Payment by wire transfer - Incorrect IBAN code indication - Bank's liability under qualified social contact theory - Nature - Exonerating proof - Content. In the context of banking operations carried out via electronic instruments, the bank's liability in case of payment by wire transfer, to be executed in favor of a beneficiary without an account at the intermediary institution, is governed by common law. Therefore, if the beneficiary remains unsatisfied due to the inaccurate indication of the IBAN code, the intermediary, liable under the theory of qualified social contact, bears the burden of proving that it performed the payment operation requested by the payer, adopting all necessary precautions to avert the risk of erroneous identification or, at least, that it took steps to enable the ordering party to identify the actual beneficiary, including communicating, where necessary, the relevant personal or corporate data.

Practical Implications of the Decision

This decision has several practical implications for clients and banks. Firstly, it underscores the importance of providing a correct IBAN code and performing checks before proceeding with a wire transfer. On the other hand, banks must implement more rigorous procedures to ensure that payments are executed securely. This includes:

• Cross-checking the data provided by clients.
• Clear and transparent communication regarding executed operations.
• Continuous staff training to minimize the risk of errors.

Conclusions

In conclusion, Order No. 17415 of 2024 represents an important step in defining banking responsibilities in case of payment errors. The clear distinction of evidentiary burdens and the emphasis on the diligence required of banks are elements that can contribute to greater security in banking operations. It is essential that both clients and banks understand these dynamics to avoid future disputes and ensure more effective management of financial transactions.