20 Sept 2023
When buying a property your conveyancer will ask for proof that you have the monies available to pay for the balance of the purchase price (after taking into account any mortgage being used) plus legal fees and any Stamp Duty Land Tax payable. You will also be required to show how you came to acquire these monies.
Conveyancing transactions are highly susceptible to fraud and money laundering due to the large sums of money involved and which pass through conveyancing firms’ accounts every day, making them a potential target for fraudsters and criminals.
Conveyancers are under a legal duty to comply with Anti-Money Laundering Regulations which means they must verify where the funds being used to purchase a property have come from. They are required to ensure that the funds came from a legitimate source in order to prevent money laundering and fraudulent transactions from taking place. Conveyancers can be subject to criminal sanctions if the funds are subsequently revealed to have been acquired by criminal activity.
In addition, if you are having a mortgage your mortgage lender will also require the conveyancer to check that the information you disclosed in your mortgage application is correct, and that you are not using any other loans or monies from third parties to fund your purchase.
Conveyancers are under separate, more stringent regulations and are unable to rely on the checks that your estate agent or mortgage broker may have carried out.
You will need to confirm the original source of the funds being used and also provide evidence of the trail of these funds over the last 6 months. Such evidence will include:
For more information on proof of funds or if you are thinking of moving house, contact our Residential Conveyancing team today.