Battling Financial Crime: The Power of Source of Wealth and Compliance Check

Battling Financial Crime: The Power of Source of Wealth and Compliance Checks

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In the current climate of financial transactions, understanding a client's source of wealth has become an integral part of risk management. 

Whether you're buying a property or making a significant investment, it's essential to appreciate the role of source of wealth checks in mitigating the risks of Anti-Money Laundering (AML) and Terrorist Financing (TF).

 

Unmasking the Origin of Funds

At MJP Conveyancing, we take our legal and regulatory obligations seriously. 

We strive to understand how you've amassed your wealth for the transaction at hand. A UK bank account isn't sufficient proof; we need to know the genesis of your wealth.

 

Why? Because the Money Laundering Regulations 2017 mandates us to. These regulations necessitate ongoing source of wealth and compliance monitoring for transactions. If we falter, we risk disciplinary action by the Solicitors Regulation Authority [SRA] and or even criminal sanctions.

 

A Commitment to Compliance

Our goal is not just to establish the origin of the funds for the transaction, but also to comprehend how they've been accumulated. From employment savings to inheritance, we leave no stone unturned in our pursuit of stamping out financial crime. 

Our team undergoes regular training to stay updated with the latest regulations and to sharpen their investigative skills. We're trained to spot any suspicious activities that might hint at criminal behaviour.

But remember, if we ask for further information or evidence, it's only because we need clarification, not because we suspect you of illicit activities.

Understanding the Source of Wealth

The term 'source of wealth' refers to the total wealth amassed by a client. We aim to unravel the mystery behind how and why a client has the assets they do

For instance, a twenty-year-old with £50,000 worth of savings might raise eyebrows. But if we find that they've inherited £45,000 and earned the rest through a decent salary, we're satisfied.

The Necessary Intrusion

Source of Wealth and Compliance checks may seem intrusive, but they are a crucial part of any transaction. Any law firm I will require these checks when you're buying or selling a property.

 

At MJP Conveyancing, we're proud to be among the 20% of law firms that are fully compliant with the SRA’s Anti-Money Laundering Regulations. So, while it may feel like an invasion of privacy, remember that it's a necessary step towards a safer, more transparent financial world.

This article was written by Phillippa White - Trainee Licensed Conveyancer with MJP Conveyancing

Disclaimer: The content produced by us is accurate as per the date of its publication. However, it should not be considered or interpreted as legal advice. We strongly recommend you consult with a legal professional for any legal concerns or queries. Please note that while we strive to keep our content updated, the legal landscape changes frequently, and the information we provide might not reflect the most current legal standards or interpretations.