ID and AML Checks When Buying and Selling a Property
Anti Money Laundering or AML checks and ID checks are a legal requirement in the UK and must be carried out on everyone involved in a property transaction. We need to check where your money has come from and that you are who you say you are. Luckily our checks are really fast and easy to complete. We guide you seamlessly through all of the steps so you know exactly what to do and when.
So what are AML checks, why you need them and what you can expect. Prepare the required docs in advance to avoid delays and once they are complete what happens to them?
What Is An Anti Money Laundering Check?
The sheer size of the property market in the UK and the high value of property involved means extremely large amounts of criminal funds can be ‘cleaned’ in one go when purchasing a property, giving it the appearance that it has been acquired legitimately.
In April 2018, the European Parliament passed the Fifth Money Laundering Directive on the prevention of money laundering and terrorist financing. This is why AML checks must be done on everyone buying a property. The penalties for not doing them are significant for Moving Buddies and your conveyancer.
Although they are incredibly important they are actually not difficult to complete.
Moving Buddies helps you complete your AML checks online quickly and easily. You need to tell us how much your deposit is and show proof of how these funds have been acquired.
Showing your funds demonstrates you are able to afford the property you are about to purchase and demonstrating the source of these funds shows the money has been acquired through legitimate means.
Depending on how you have come about your deposit funds depends on the supporting documents you need to supply. Don’t worry we guide you through and tell you the right documents you need based on your individual circumstances.
How Do I Acquire Proof of Funds For AML Checks?
- An agreement in principle/mortgage in principle
- Bank statements showing your deposit (mortgage buyers)
- Bank statements showing the cash amount (cash buyers)
- Past Bank statements showing how your money has built up over time
- Evidence you are selling a property
- Evidence you have been gifted the money.
- Evidence that money was left to you in a Will
- Receipts of shares etc being sold
We provide you with clear instructions at every stage. Buying and selling a property can be daunting but we’re here to make it as stress-free and straightforward as possible.We only ever request the essential information needed to run the ID and AML checks so you are safe in the knowledge you are not sharing unnecessary personal information. Some useful documents to get to hand before starting your checks:
- Council Tax Bill
- Driving Licence
- Utility Bill
- Bank Account Statements
Moving Buddies creates real-time updated communication between your mortgage broker, estate agent and conveyancer. Everyone can see the transaction progress and will know when your ID and AML checks are complete. You can also share this real time progression with other parties in the chain.