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Source of Funds - A Conveyancers Obsession

Why does your Conveyancer want so much detail regarding the origin of the monies you invest? Why do they have to be so intrusive?

Source of funds compliance conveyancers

Pay slips, P60s, Bank and Savings Statements. All are fair game. Evidence of your inheritance, lottery win or property sale demanded. These are incredibly sensitive be and confidential documents!


WHY?

Blame the criminals, fraudsters and scammers whose schemes are incredibly sophisticated. To combat this the Government has made Conveyancers the frontline in the fight against Property Fraud, Money Laundering and ID Theft.


Regulations require Conveyancers to check Source of Funds and Source of Wealth* on threat of being struck off and even prison time. Along with everything else that Conveyancers must do, yet another time-consuming hurdle has been foisted upon us. One that we do not want.


We are not financial experts or accountants. We are not FCA regulated. It is not our area of expertise and we do not wish to snoop through your financial records. Yes, it is incredibly intrusive. No, we do not want this. We have no choice. Our hands are tied by our Regulators.


Why does this responsibility not rest with banks, financial advisors, lenders and mortgage brokers? It does seem unfair to dump this solely at the poor Conveyancer's door.


Compliance, due-diligence, Source of Funds, AML and ID checks all add to the time it takes to get you to the finish line in your Conveyancing matter. All form part of the Governments regulatory efforts to combat crime and fraud.


It is time consuming for us and unpleasant for you. But we are where we are.


(*Source of Funds and Source of Wealth means not only where your funds are held but how you accrued them. A paper trail is required to be held on file.)


NB: Your Conveyancer is unlikely to change banks mid-transaction. Beware of emails requesting funds be sent to a different account. This is a well know ploy called "Payment Diversion Fraud". You will have paid monies on account initially and your Conveyancer's bank details will remain the same. If in doubt telephone them to check. Emails can easily be hacked, intercepted or cloned.



REGULATIONS REQUIRE US TO CHECK:


• How and from where did the client get the money for this transaction? It is not enough to know the money came from a UK bank account.


• Why and how does the client have this amount of overall assets?  How did they accumulate / generate these funds? 


• Obrain evidence showing why they have such wealth and an assurance that it has been obtained legally.



Compliance


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