What is Anti Money Laundering? | AVRillo

What is Anti Money Laundering?

Monday 12 October 2020  / 

Washing Machines

The Government introduced Anti-Money Laundering Regulations to reduce the risk of terrorism and illegal activity within the UK, and especially with billions of pounds being laundered in UK property.

What are Anti-Money Laundering Regulations?

The law was Introduced by the Government in the Money Laundering Regulations 2002.  They are what are legally called ‘strict liability’ offences which  means someone can be in breach of money laundering rules even for innocent errors.

Why were the Money Laundering Rules introduced? . Are their penalties? Yes, penalties include thousands of pounds in fines, and in serious cases imprisonment. They can also lead to delayed completion, and risk the defaulting party paying compensation. these apply in all UK conveyancing transactions as these involve the use of money to purchase property.

Why must I comply with Anti-Money Laundering Regulations?

The Law prevents Lawyers from acting for any seller or buyer unless their client can pass the UK Money Laundering Regulations.  Talk to your solicitor about this at your quote stage in case you think you may have any risk of difficulties such if your passport is missing, or you don’t have sufficient ID evidence.  Tell them if any of your purchase money is coming from an external source, such as a family member etc, as this can slow you down and risk you not being able to move in time or at all.

Why do I need to prove my identity when purchasing a house?

Under the Government’s Anti-Money Laundering Regulations both buyer and seller must provide evidence of their true identity.  This is to combat the billions of pounds criminals and terrorist groups for example, are money laundering in the UK by buying and selling property.  This is a strict liability offence and you will be liable to penalty, both financially and criminal, even for innocent errors.

What identity documents do I need to provide?

Your lawyer will send you a list of Government approved ID.  You can send for example your passport or photo ID driving licence.  As proof of your address – you can send two separate documents, ranging from a recent utility statement or bank statement etc, showing your residing address.

Can I email or do I need to post my ID documents?

You must send your ID documents by post. Given the high level of fraud, and money laundering activity in the UK, best practice is for you to post your ID documentation to your lawyers. Some firms ask for original passport etc, others will accept copies.

Why do I need to prove Source of Funds?

The Government requires a buyer only, or a Donor of a gift to the buyer, to produce evidence that their funds are genuine.

Billions of pounds are laundered each year in the UK property market by criminals washing dirty illegal money by buying and selling property.

Sadly, these strict provisions are vital, but cause extra work for both innocent buyer and seller, but it is something both need to do, in order to buy and sell.

How do I prove Source of Funds?

Your lawyer will send you a source of funds questionnaire asking questions such as; your occupation, income, savings, etc.  It is not something they enjoy doing.  Pease do not be offended when they ask.  Your Lawyer is legally required to ask these questions under the Governments Money Laundering Regulations 2002. Your lawyer will also ask for your latest bank statement showing source of funds.

Digital Anti-Money Laundering Technology

New technology is allowing some lawyers to utilise digital face recognition software.  This reduces the need to send ID evidence by post. Ask your lawyer about this.  At AVRillo we are currently using both copy postal and digital AML checking.

Talk to AVRillo – We Get You Moving

AVRillo are an award winning nationwide conveyancing team with a 95% Completion rate on all property transactions.

If you are looking for a conveyancer that can get you moving talk to AVRillo.

You can Request a Free Quote or Book a Surgery Call with one of our conveyancers.