pursuant tostanding authorizations todebitoftendonotpermitwithdrawal of theauthorization foraspecific periodoftimepriortothescheduled submission ofthedebittransfer instruction. However, wherethebatched fundstransfer instructions arecontained onoptical disks,theprevious difficulties insearching forindividual fundstransfer instructions nolonger exist. As aresultithasbecometechnically feasible toallowwithdrawal of theinstruction foralongerperiodoftime.Thisnewtechnical possibility may berecognized intherulesgoverning thetimeuntilwhichafundstransfer instruction may be withdrawn bythetransferor ortransferor bank.•• •A/CN.9/266/Add.1 English Page19 3.Reversal oferroneous fundstransfers 69.Afterabankhasdebited thetransferor's account orcredited the transferee's accountitmaysubsequently learnthatithasmade an errorin carrying outthefundstransfer, orthatanother bankorotherparticipant in thefundstransfer hasmadesuchanerror.Thequestion ariseswhether the bankmayrectify theerrororwhetheritisprecluded fromdoingsobecause of thefinality ofthefundstransfer. 70.Legalruleswhichdelaythepointoftimeatwhichthefundstransfer becomes finalgivebanksadditional timetodiscover theproblem andto dishonour theinstruction beforethetransfer isfinal. Ashasbeennoted above,one means ofdelaying finality istopermitbankstoenterdebits and credits provisionally untilthebankhasverified theauthenticity ofthe fundstransfer instruction, theaccuracy ofthedataprocessing andthe assurance thatthebankwillreceive valuefromitsdebitparty. Oncethe fundstransfer isfinal,thereversal ofthedebitsorcredits entered bythe banksissubject tovarying degrees ofrestriction. (a)Reversal ofdebiton demand oftransferor 71. Atransferor bankwhichhasreceived anoticethattherehasbeenfraud committed intheissueoffundstransfer instructions isnonmally responsible forthelosscaused byitssubsequent honourofthem.However, thetransferor bankisnotrequired toreverse thedehitstothetransferor's account in re~pect ofthosefundstransfers whichhavealready becomefinal. Insuch cases,thebankisprotected toagreater orlesserextent byprinciples of lawofgeneral application, placing theliability forthelossasbetween the transferor andthebankinwholeorinpartonthetransferor. Forexample, ifadishonest employee ofthetransferor hascaused aseriesoffraudulent fundstransfer instructions toheissued, thetransferor mayhavetherightto instruct thebanknottohonourthoseinstructions whichhavenotyetbeen honoured butnothavetherighttorequire thebanktoreverse thedebitsto hisaccount inregardtothoseinstructions whichhavebeenhonoured. 72. Aspecial problem ariseswhenthetransferor notifies thetransferor bank inanappropriate manner andatanappropriate timethatheiswithdrawing the fundstransfer instruction butthetransferor banksubsequently honoursitby mistake. Avariation ofthisproblem ariseswhenthetransferor bankhas already sentacredittransfer instruction tothenextbankinthechainprior towithdrawal oftheinstruction bythetransferor andthebankdoesnottake thenecessary stepstoprevent thetransferee bankfromhonouring it.Even thoughthetransferor may beactingproperly withinthelegalrules,itmay be thought thathisissueofafundstransfer instruction andhissubsequent withdrawal ofitcreates asituation inwhichthetransferor bankissubjected toahigherthanordinary riskofmaking anerror. Furthermore, ifthe transferor owedtothetransferee theamounttransferred, inmanylegal systems completion ofthefundstransfer wouldbeconsidered todischarge that obligation, evenifthelegalrulespermitted thetransferor towithdraw his instruction beforeitwashonoured. 73.Oneapproach tothissituation emphasizes thatbanksmustfollowthe properinstructions oftheircustomers. Therefore, when a fundstransfer instruction hasbeenwithdrawn induetimeandinthepropermanner, theA/CN.9/266/Add.l English Page20 transferor bankshouldberequired toreverse anydebitentered tothe transferor's account. Inaddition. sincenovaluehasbeentransferred from thetransferor's account. anycreditalready entered tothetransferee's account shouldalsobereversed. Otherwise. thetransferor wouldhavethe benefit ofdischarging hisobligation tothetransferee without beingcharged forit.Reversing boththedehittothetransferor's account andthecredit tothetransferee's account restores allparties tothesituation theywould havebeeninifthetransferor hankhadacteduponthetransferor's withdrawal
**Analysis**
The text appears to be discussing the rules and regulations governing international fund transfers, specifically in the context of banking and finance. The language used is technical and legal, indicating a focus on the operational aspects of international financial transactions. The text also touches on the issue of errors and reversals in fund transfers, which suggests that it may be relevant to the field of finance and banking.

**Category**
Finance, Industry