# Forced transfer

Source: https://docs.settlemint.com/docs/user-guides/asset-servicing/forced-transfer
Execute custodian-only exception transfers for recovery, legal, or compliance cases.



A forced transfer moves assets between accounts without the holder's consent or
signature. It is a custodian operation for exceptional recovery, legal, or
compliance cases where the asset operator is authorised to intervene.

Forced transfers are day-two operations. Limit them to governed exception
cases, execute them with the correct asset role, and link them to supporting
evidence for audit review.

**Common use cases:**

* **Court-ordered seizures** - comply with judgments for fraud, divorce settlements, or creditor claims
* **Estate transfers** - move assets from deceased holders to beneficiaries under probate orders
* **Sanctions compliance** - move assets from sanctioned entities to controlled accounts when required
* **Lost access recovery** - restore assets to verified owners who lost wallet access
* **Bankruptcy proceedings** - transfer assets to court-appointed trustees

<Callout type="warn" title="Custodian-only exception workflow">
  Forced transfers bypass holder authorization, normal transfer initiation, standard freeze restrictions, and configured
  compliance-module transfer checks. At the contract layer, they are not rejected solely because the asset is paused.
  The Asset Console can still make the action unavailable while an asset is paused, so treat this guide as the governed
  console workflow. Forced transfers do not bypass the registered-recipient check. Use them only for governed exception
  cases, run them through an operator with the Custodian role, send assets only to recipients you have verified, and
  keep detailed records for audit purposes.
</Callout>

## Prerequisites [#prerequisites]

* `CUSTODIAN_ROLE` for the asset (check **Permissions** tab)
* source address with enough balance for the transfer
* verified recipient address
* supporting legal or recovery evidence, such as a court order, probate document, sanctions case record, or account-recovery approval

## What the operation does [#what-the-operation-does]

A forced transfer debits the source holder and credits the recipient in one
custodian-authorised transaction. The operation is deliberately different from a
normal holder transfer:

| Check or control                         | Normal transfer | Forced transfer                                                         |
| ---------------------------------------- | --------------- | ----------------------------------------------------------------------- |
| Holder signature or approval             | Required        | Not required                                                            |
| Custodian role                           | Not required    | Required                                                                |
| Standard freeze restrictions             | Apply           | Bypassed                                                                |
| Asset pause state                        | Blocks transfer | Not rejected at contract layer; console availability can still be gated |
| Configured compliance can-transfer check | Applies         | Bypassed                                                                |
| Recipient identity check                 | Applies         | Applies                                                                 |

Use the operation when the custodian must resolve an exception. Do not use it as
a routine transfer path.

## Steps [#steps]

<Steps>
  <Step>
    ### Open forced transfer dialog [#open-forced-transfer-dialog]

    Navigate to **Asset Management**, select the asset, click **Manage Asset** > **Forced transfer**.

    ![Manage Asset menu with Forced transfer](/docs/asset-servicing/forced-transfer-menu.webp)
  </Step>

  <Step>
    ### Enter details [#enter-details]

    * **From address** - Account losing assets
    * **To address** - Recipient (trustee, beneficiary, blocked account)
    * **Amount** - Units to transfer

    ![Forced transfer form](/docs/asset-servicing/forced-transfer-form.webp)
  </Step>

  <Step>
    \### Confirm Review details and authenticate with PIN/OTP.
  </Step>

  <Step>
    ### Document the evidence [#document-the-evidence]

    Record the transaction hash, the approving operator, the reason for the
    exception, and the supporting legal documentation.
  </Step>
</Steps>

## Troubleshooting [#troubleshooting]

| Issue                | What to check                                                                                                                               |
| -------------------- | ------------------------------------------------------------------------------------------------------------------------------------------- |
| Option not visible   | Verify that your operator account has `CUSTODIAN_ROLE` for the asset.                                                                       |
| Insufficient balance | Check the source holder's balance on the Holders tab before submitting the transfer.                                                        |
| Recipient rejected   | Verify that the recipient address is registered and eligible for the asset.                                                                 |
| Transaction reverts  | Check the source balance, recipient identity status, gas, wallet verification, and custody policy.                                          |
| Asset is paused      | Pause blocks this Asset Console workflow. Unpause the asset first. For contract-level exception handling, follow your deployment procedure. |

## Related operations [#related-operations]

The `CUSTODIAN_ROLE` also enables freeze, unfreeze, and wallet-recovery operations.
For the normal compliance path, see [Compliance transfer flow](/docs/architecture/flows/compliance-transfer). For permissions, see [Per-Asset RBAC](/docs/architecture/components/asset-contracts/rbac).