Money Laundering in Property Transactions: Why Your Conveyancer is Being Nosy (But Can You Blame Them?)

Buying or selling a property can be an exciting, yet daunting process. One aspect that may have left you scratching your head is why your conveyancer is asking so many questions about your identity and the funds you are using to buy or sell the property. The answer is simple - anti-money laundering regulations.

David Pett, Compliance Officer at MJP Conveyancing explains, property transactions have always been a target for criminals looking to launder their money. Anti-money laundering measures are in place to prevent criminal activity and protect you as the client.

To comply with these regulations, conveyancers must undertake due diligence by obtaining identification documents and details about the source of funds being used. This helps to ensure that they are acting within the law and not facilitating criminal activity.

The identification documents required include a current passport or driving licence for photo ID and a recent utility bill or bank statement for address ID. If the property being sold is not the main residence, additional documentary evidence linking the seller to the property is required.

For buyers, information about the source of funds used to purchase the property is necessary. This includes savings, inheritance, sale of another property, bonuses or cash gifts. If someone is giving money towards the purchase, their identification and information about the source of funds must also be provided.

It's understandable that these questions may feel intrusive, but it's important to remember that conveyancers are simply following legal requirements to ensure the transaction is legitimate. Clients are encouraged to cooperate with their conveyancer's requests to make the process as safe as possible.

By complying with anti-money laundering regulations, conveyancers are helping to prevent criminal activity and protect clients during property transactions.