International money moves differently from the payments you make down the street. A local bank transfer within London or New York often arrives in minutes or hours, yet sending the same amount across borders can feel like watching paint dry.
International transfer delays leave people wondering: why do some payments take several days? Are banks just slow, or is there more going on? This article explores the reasons behind long cross‑border payment timelines and sheds light on the systems and safeguards that contribute to them.
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The tension between speed and safety
When money crosses borders, it moves through multiple systems, time zones and regulatory regimes. Each step introduces friction. Regulatory compliance is one of the most prominent reasons. The Bank of England notes that payment messages must contain enough data to confirm the identity of the parties and the legitimacy of the payment. Because different countries use varying data formats and scripts, banks may have to translate or truncate names and addresses, making automation harder. When formats differ, the same transaction may need to be checked several times to ensure it doesn’t expose anyone to illicit finance. These compliance checks, often referred to as Anti‑Money Laundering (AML) and Countering the Financing of Terrorism (CFT) screening, are legally mandated and protect the global financial system. As a U.S. Treasury official recently observed, some cost and delay is deliberately built into the system—batching and delayed settlement mitigate credit and liquidity risk, and faithful compliance with AML/CFT requirements is critically important.
1. Compliance and AML screening
Regulators require banks to ensure that payments are not being used to launder money, evade sanctions or finance illegal activity. That means every cross‑border transfer is screened against sanctions lists and watch lists. The Financial Stability Board’s 2025 consolidated progress report notes that progress toward faster payments is hindered by misaligned AML/CFT compliance controls and privacy rules. Different countries have different standards and data requirements; as a result, the same transaction may be reviewed by several banks in the chain, each using its own databases. Sometimes names that resemble sanctioned entities are flagged incorrectly, which adds manual review time. The intent is to keep the system safe, but it can feel like waiting at airport security.
These delays aren’t just bureaucratic. They reflect a balance between speed and integrity. The U.S. Treasury emphasises that while costs and delays exist, there is room to make cross‑border payments faster and cheaper without neglecting compliance. In other words, eliminating screening isn’t an option; improving the accuracy and interoperability of these checks is the real challenge.
2. Intermediary banks and long correspondent chains
Unlike domestic transfers, where you and your recipient likely use the same clearing system, an international payment often travels through a network of correspondent banks. Many banks do not maintain direct relationships in every jurisdiction because it’s expensive to do so. Instead, they rely on intermediary institutions to forward payments. The Bank of England explains that this reliance on the correspondent banking model creates long transaction chains, which increase costs and delays and lead to repeated validation checks. Each intermediary may deduct a small fee, verify compliance again and convert the message into its own systems, amplifying the risk of data errors along the way. This complexity is one reason international wires are slower than domestic payments.
Understanding how intermediaries communicate helps clarify the problem. The Society for Worldwide Interbank Financial Telecommunication (SWIFT) provides the secure messaging network that underpins most international wires. While SWIFT transmits messages quickly, the settlement of funds still relies on the accounts and credit lines that banks hold with one another. For a deeper look at this global infrastructure layer, see our article on what SWIFT is and how international wires work—there you’ll learn how correspondent banks, messaging and settlement interlock to move money across borders.
3. Limited operating hours and cut‑off times
Domestic real‑time payment systems operate near 24/7, but cross‑border settlement depends on real‑time gross settlement (RTGS) systems in each jurisdiction. These systems typically operate during local business hours, and their hours seldom overlap across regions. The Committee on Payments and Market Infrastructures (CPMI) surveyed 62 RTGS systems and found that gaps in operating hours partly explain delays; when operating hours do not overlap, cross‑border payments suffer delays, increasing liquidity costs and settlement risk. Some jurisdiction pairs have gaps exceeding 20 hours per day. The CPMI also highlights that gaps are larger every week because few RTGS systems operate on weekends or public holidays—average weekly operating hours are about 25% lower than on weekdays.
These limited windows mean that a payment initiated late on Friday in one time zone may not settle until Monday in another. The Bank of England echoes this, noting that balances can only be updated during settlement system hours and that time‑zone differences create delays and trapped liquidity. Even when extended hours have been implemented, they often serve only critical payments and not retail transfers. As central banks explore 24/7 settlement, these delays may shrink, but for now, they are a major bottleneck.
4. Capital controls, documentation and regulatory variations
Another reason cross‑border payments can take time is that money doesn’t just move through payment rails—it also crosses regulatory borders. Countries may require foreign exchange approvals, proof of the transaction’s purpose or documentation for tax and balance‑of‑payments reporting. The Bank of England lists capital controls, requests for documentation and balance‑of‑payments reporting among the elements that introduce friction and can cause significant payment delays. The FSB progress report highlights that inefficient implementation of capital controls and privacy rules remains a key challenge. These controls aren’t arbitrary; they help countries manage currency reserves and monitor large flows, but they add steps and sometimes manual checks.
Variations in legal frameworks across jurisdictions further complicate matters. A payment that complies with one country’s rules may need additional verification elsewhere. Requests for supporting documents are common in high‑value transfers or payments to emerging markets. Each request adds another layer of review, lengthening processing times.
5. Fragmented data formats and legacy technology
Technological friction is an often‑overlooked contributor to delays. Payment messages are essentially data packets that must carry information about the sender, recipient and purpose of the payment. The Bank of England points out that data standards and formats vary significantly across jurisdictions and networks. Some formats only allow Latin characters or have limited space for addresses, so names and addresses must be translated or truncated. This can cause mismatches with compliance databases and force manual intervention.
Legacy platforms exacerbate the problem. Many cross‑border payment systems still rely on batch processing and cannot monitor transactions in real time. When different legacy systems have to interact, the risk of data loss or corruption increases, requiring additional validation. These technology gaps hinder automation and extend settlement timelines.
Connecting back to the bigger picture
Understanding why international payments get stuck helps you appreciate the broader system behind global money movement. The delays discussed here connect directly to the Payment Systems & International Money Transfers pillar article, which explains how money moves across domestic, regional and global networks. Delays are not just an inconvenience; they are symptoms of a system designed to balance speed, safety and regulatory requirements.
When you compare cross‑border wires with regional systems like SEPA, the difference becomes clear. SEPA’s harmonised rules and operating hours allow euro payments across 36 countries to settle quickly, with minimal fees. See our article on how SEPA transfers work in Europe to understand how regional integration reduces delays. Conversely, payments that cross currency zones must navigate SWIFT networks, correspondent banks, multiple regulations and foreign exchange conversions. These complexities also drive up costs, so it makes sense to read International Money Transfer Fees Explained alongside this piece to see how fees and delays intertwine. And because exchange rates fluctuate while your money is in transit, our article on how currency exchange rates affect your transfer explains why rates can move against you during those settlement windows. Together, these supporting pieces paint a complete picture of global payments.
Delays are real, but so is progress
It can be frustrating to wait for money that seems to disappear into a digital void. But understanding the reasons behind international transfer delays makes the experience less mysterious. Each delay has a cause—whether it’s compliance checks to prevent illicit finance, long chains of correspondent banks, settlement systems closed overnight and on weekends, regulatory hurdles or outdated technology. These frictions are part of a global network that prioritises stability alongside efficiency. Efforts by international bodies like the FSB, CPMI and national central banks aim to reduce these frictions without compromising integrity. Progress may be gradual, but awareness helps manage expectations and underscores the importance of ongoing reforms.
Frequently asked questions about international transfer delays
Why do international bank transfers take longer than domestic ones? International transfers move through multiple banks and regulatory regimes. Each intermediary performs compliance checks, and settlement depends on overlapping operating hours across time zones. Domestic transfers usually rely on a single clearing system, so they arrive faster.
How long do cross‑border payments typically take? It varies by corridor. The Bank of England notes that limited operating hours and time‑zone differences mean balances can only be updated during certain windows. Some transfers settle within a day, while others take several days, especially when weekends and public holidays intervene.
Do compliance checks always delay payments? Compliance screening is required to prevent money laundering and sanctions breaches. Misaligned AML/CFT controls across jurisdictions mean the same transaction may be screened multiple times. While these checks do slow down processing, they protect the financial system and are not optional.
Why does the amount I send differ from what the recipient receives? Intermediary banks may deduct fees and exchange rate mark‑ups while the payment is in transit. Long transaction chains increase the chances of deductions. Our supporting article on international money transfer fees explains how fee structures work and why recipients sometimes receive less than expected.
Are weekends and public holidays always a factor? Yes. The CPMI report notes that gaps in RTGS operating hours are even larger when considering weekly availability—few systems operate on weekends and public holidays. Initiating a payment just before a weekend often means it won’t settle until the next business day.
Can modern technologies solve these delays? Innovations like instant payment systems and distributed ledgers offer promise, but they must integrate with existing regulatory and settlement frameworks. Extending settlement hours and interlinking domestic systems are among the solutions being explored. However, replacing correspondent banking overnight isn’t feasible; progress will be incremental.
Do all corridors have the same delays? No. Certain regions, such as the Eurozone under SEPA, provide faster settlement due to harmonised rules. Others are slower because of time‑zone gaps, capital controls and fewer overlapping operating hours. Understanding the specific corridor helps set expectations.
What role do capital controls play? Some countries restrict the amount or purpose of funds leaving or entering their borders. These capital controls, along with documentation requirements and balance‑of‑payments reporting, can cause significant delays. The FSB identifies inefficient implementation of capital controls as a persistent challenge.
Will international transfers become instant in the future? Global bodies aim to credit 75% of cross‑border payments within one hour of initiation by 2027. Achieving this requires extending RTGS operating hours, improving data standards, harmonising regulations and integrating payment systems across borders. Progress so far is promising but uneven.