AML Checks: The Unsung Hero of Home Buying

Buying a home is one of the biggest financial commitments most people will ever make. Alongside the excitement of moving into a new property, there are serious legal responsibilities behind the scenes that help protect you and the wider property market. One of the most important of these is the anti-money laundering (AML) check carried out by your conveyancer.

A recent High Court ruling highlights just how serious the consequences can be when these checks are not done properly.

The Case: Turning a Blind Eye to Red Flags

Deputy High Court Judge Saira Salimi recently ruled that a partner at a London law firm, Daniel Broughton, “dishonestly assisted” in the misappropriation of £2.4 million by failing to carry out proper AML procedures.

Despite repeated red flags during three property transactions, Broughton:

• Failed to obtain evidence of funds and their source.

• Ignored his own follow-up inquiries.

• Breached both his firm’s internal policies and national AML guidance.

The court found that he effectively turned a “blind eye” to obvious concerns and, as a result, allowed millions of pounds of misappropriated money to pass through his firm’s client account.

The wider fraud involved around £7 million of investor funds, with one director fleeing the country to avoid imprisonment.

Why This Matters to You as a House Buyer

You might wonder – what does this have to do with me if I’m just buying a home? The answer is simple:

1. Protection of Your Money
   Your deposit, mortgage funds, and completion monies all pass through your conveyancer’s client account. AML checks help ensure those accounts are not being used for fraud or crime.

2. Avoiding Delays or Failed Transactions
   If suspicious funds are uncovered late in the process, transactions can be frozen, delayed, or even cancelled. This could cost you your dream home.

3. Protecting the Market
   Criminals often try to launder money through property because of the large sums involved. AML checks protect the housing market from becoming a tool for organised crime.

4. Your Legal Safety Net
   If your conveyancer fails to follow AML rules, it could expose you to investigations, financial losses, or legal battles – even if you were an innocent buyer.

What the Court Made Clear

The judge’s ruling sends a strong message:

• Being “sloppy” or careless is not an excuse.

• A solicitor who consistently fails to carry out AML checks can be found dishonest, even if they didn’t know about a specific fraud.

• Reckless disregard for the source of funds is treated as dishonesty.

In this case, the solicitor was an experienced partner and even the deputy anti-money laundering officer of his firm. His failure to act properly was not just a professional lapse – it was found to be dishonest.

The Takeaway for Buyers

When choosing a conveyancer, make sure they take AML checks seriously. Yes, it may feel inconvenient to provide bank statements, ID documents, and explanations about your deposit – but these checks are there to protect you.

If your conveyancer didn’t carry out AML checks, the risks could include:

• Your money being mixed with criminal funds.

• Your purchase being delayed or cancelled.

• Legal complications down the line if fraud is uncovered.

In short: AML checks are not box-ticking. They’re your safeguard in one of the biggest purchases of your life.

✅ Tip for Buyers: If your conveyancer asks for detailed evidence of your funds, take reassurance from it. It means they are protecting you and ensuring your transaction is safe and compliant.