diff --git a/CHANGELOG.md b/CHANGELOG.md
index c7ebdc67fd..c41e42d710 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -55,6 +55,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 ### Improvements
 
+* (x/bank) [#24106](https://github.com/cosmos/cosmos-sdk/pull/24106) `SendCoins` now checks for `SendRestrictions` before instead of after deducting coins using `subUnlockedCoins`.
 * (crypto/ledger) [#24036](https://github.com/cosmos/cosmos-sdk/pull/24036) Improve error message when deriving paths using index > 100
 * (gRPC) [#23844](https://github.com/cosmos/cosmos-sdk/pull/23844) Add debug log prints for each gRPC request.
 * (server) [#24072](https://github.com/cosmos/cosmos-sdk/pull/24072) Return BlockHeader by shallow copy in server Context.
diff --git a/x/bank/README.md b/x/bank/README.md
index 885a9f1f6f..6f0a701bc3 100644
--- a/x/bank/README.md
+++ b/x/bank/README.md
@@ -275,7 +275,7 @@ Both functions compose the provided restriction with any previously provided res
 `PrependSendRestriction` adds the restriction to be run before any previously provided send restrictions.
 The composition will short-circuit when an error is encountered. I.e. if the first one returns an error, the second is not run.
 
-During `SendCoins`, the send restriction is applied after coins are removed from the from address, but before adding them to the to address.
+During `SendCoins`, the send restriction is applied before coins are removed from the from address and adding them to the to address.
 During `InputOutputCoins`, the send restriction is applied after the input coins are removed and once for each output before the funds are added.
 
 A send restriction function should make use of a custom value in the context to allow bypassing that specific restriction.
diff --git a/x/bank/keeper/keeper_test.go b/x/bank/keeper/keeper_test.go
index be46327feb..dee6c39d4c 100644
--- a/x/bank/keeper/keeper_test.go
+++ b/x/bank/keeper/keeper_test.go
@@ -1163,7 +1163,7 @@ func (suite *KeeperTestSuite) TestSendCoinsWithRestrictions() {
 			},
 			expErr: "test restriction error",
 			expBals: expBals{
-				from: sdk.NewCoins(newFooCoin(885), newBarCoin(273)),
+				from: sdk.NewCoins(newFooCoin(985), newBarCoin(473)),
 				to1:  sdk.NewCoins(newFooCoin(15)),
 				to2:  sdk.NewCoins(newBarCoin(27)),
 			},
@@ -1177,12 +1177,9 @@ func (suite *KeeperTestSuite) TestSendCoinsWithRestrictions() {
 			actualRestrictionArgs = nil
 			suite.bankKeeper.SetSendRestriction(tc.fn)
 			ctx := suite.ctx
-			if len(tc.expErr) > 0 {
-				suite.authKeeper.EXPECT().GetAccount(ctx, fromAddr).Return(fromAcc)
-			} else {
+			if len(tc.expErr) == 0 {
 				suite.mockSendCoins(ctx, fromAcc, tc.finalAddr)
 			}
-
 			var err error
 			testFunc := func() {
 				err = suite.bankKeeper.SendCoins(ctx, fromAddr, tc.toAddr, tc.amt)
diff --git a/x/bank/keeper/send.go b/x/bank/keeper/send.go
index 7628821272..9b2f22fc39 100644
--- a/x/bank/keeper/send.go
+++ b/x/bank/keeper/send.go
@@ -208,12 +208,12 @@ func (k BaseSendKeeper) InputOutputCoins(ctx context.Context, input types.Input,
 // An error is returned upon failure.
 func (k BaseSendKeeper) SendCoins(ctx context.Context, fromAddr, toAddr sdk.AccAddress, amt sdk.Coins) error {
 	var err error
-	err = k.subUnlockedCoins(ctx, fromAddr, amt)
+	toAddr, err = k.sendRestriction.apply(ctx, fromAddr, toAddr, amt)
 	if err != nil {
 		return err
 	}
 
-	toAddr, err = k.sendRestriction.apply(ctx, fromAddr, toAddr, amt)
+	err = k.subUnlockedCoins(ctx, fromAddr, amt)
 	if err != nil {
 		return err
 	}