Order no. 21105 of 2024: Clarifications on the liability of banking intermediaries in bank transfers

On July 29, 2024, the Court of Cassation issued order no. 21105, which addresses a highly relevant issue in the field of banking operations: the liability of intermediaries in the event of bank transfers executed with an incorrect IBAN code. This ruling falls within the regulatory framework provided by Legislative Decree no. 11 of 2010, implementing European Directive 2007/64/EC, and emphasizes the importance of the IBAN as a filter for determining liability in payment operations.

The role of the IBAN in payment operations

The Court clarified that the IBAN, being a unique identification code, plays a crucial role in determining the correct attribution of liability. In particular, Article 25 of Legislative Decree no. 11 of 2010 states that:

NOTIONS, CHARACTERISTICS, DISTINCTIONS - BANK'S OBLIGATIONS Payment operations carried out by electronic means - Bank transfer - Execution in accordance with the unique identification code (IBAN) - Liability of the banking intermediary - Exclusion - Irrelevance of further indications provided by the originator. Regarding payments made by bank transfer, Article 25 of Legislative Decree no. 11 of 2010 - implementing Directive 2007/64/EC on payment services in the internal market - assigns the IBAN the function of a filter for determining the cases in which the liability for non-execution or incorrect execution is attributable to the user and those in which it is necessary to ascertain which of the intermediaries involved in the procedure caused the malfunction of the operation, with the consequence that if a payment is executed according to an IBAN erroneously indicated by the payer, there is no liability for the intermediaries who participated in the operation (even though they have the obligation to act and cooperate for the recovery of the sums), regardless of whether the order contains further information to identify the beneficiary and/or their credit account.

Implications of the ruling

This ruling has significant implications for users of banking services, as it clarifies that liability in the event of a bank transfer execution cannot be automatically attributed to banking intermediaries if the payment was made based on an incorrect IBAN provided by the originator. It is therefore essential for anyone making a bank transfer to carefully check the IBAN code before proceeding with the operation.

• Always verify the provided IBAN code.
• In case of error, the liability lies with the originator.
• Intermediaries must cooperate in the recovery of funds but are not liable for the originator's errors.

Conclusions

In conclusion, order no. 21105 of 2024 offers an important clarification on the liability of banks in case of errors in bank transfers. The jurisprudence reiterates the need for correct use of the IBAN and emphasizes the importance of individual responsibility in banking operations. Users must be aware that the correct indication of the IBAN code is fundamental to avoid misunderstandings and problems in payment management.