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ARTICLE · 02 JULY 2024

Why Do Solicitors Require Source Of Funds In Property Transactions?

WSP Solicitors
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Solicitors verify the source of funds to combat money laundering, as required by law and mortgage lenders. Clients must provide comprehensive bank statements and documentation to ensure compliance and expedite the conveyancing process.

United KingdomFinance and Banking
WSP Solicitors
WSP Solicitors

When your solicitor asks for bank statements dating back months, please believe us when we say they are not just being difficult! Gemma Francis, a Conveyancer in WSP Solicitors' Residential Property Law Department discusses the reasons behind why solicitors need to verify the source of your funds.

Why is it important to verify the source of funds?

Money laundering costs the UK in excess of £100 billion pounds a year and as there are huge sums of money involved in the Conveyancing industry, it is a prime target for fraudsters and criminals to launder their money.

What are the legal requirements for verifying source of funds?

Under regulations 27 and 28 of The Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017, Solicitors have a duty to undertake customer due diligence which includes verifying identity and source of funds.

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