Retaining Money Transferred by Mistake: A Conduct That May Lead to Criminal Liability

Wrongful Retention of Mistaken Transfers: A Small Act That May Lead to Criminal Liability

In recent years, several cases involving the retention of mistakenly transferred money have resulted in criminal prosecution in Vietnam, highlighting the thin line between civil disputes and criminal liability.

A notable example is the case of Mr. Nguyen The Lu in Quang Tri, who was criminally charged for illegal retention of property after receiving nearly VND 500 million transferred by mistake and refusing to return the funds despite official requests.

1. Are You Required to Return Money Transferred by Mistake?

Under Vietnamese law, money transferred by mistake does not become the lawful property of the recipient. A transfer error does not give the recipient the right to possess, use, or dispose of the funds.

Recipients are legally required to:

Notify the bank or the sender

Return the full amount received by mistake

Refrain from using the money for personal purposes

2. When Does Retaining Mistakenly Transferred Money Become a Crime?

Pursuant to Article 176 of the Vietnamese Penal Code, a person who intentionally fails to return property after:

Knowing that the property does not belong to them

Receiving requests from the rightful owner, bank, or competent authorities

may be criminally prosecuted for illegal retention of property, with penalties ranging from 1 to 5 years’ imprisonment, depending on the value of the assets and the circumstances.

???? Claiming ignorance of the law does not exempt criminal liability.

3. The Boundary Between Civil and Criminal Liability

Many assume these cases are purely civil matters. However:

Voluntary cooperation and prompt return may keep the matter civil

Intentional avoidance, use, or appropriation may escalate it into a criminal offense

The recipient’s conduct after receiving the mistaken transfer is a decisive factor.

4. What Should You Do If You Receive Money by Mistake?

To avoid legal risks, recipients should:

Not withdraw or spend the money

Contact the bank immediately for transaction verification

Report the matter to local authorities if necessary

Proper and timely handling protects both the sender and the recipient from legal consequences.

5. Legal Consultation on Mistaken Transfers

In practice, disputes often arise due to delayed action or improper handling.

GIVLAW provides legal services to:

Advise on cases involving mistaken transfers and property retention

Guide lawful handling to avoid criminal liability

Protect clients’ legal rights in related civil and criminal matters

GIVLAW – Preventing legal risks before they turn into criminal consequences.