Source of Funds
Source of Funds - As part of our Anti-Money Laundering (AML) checks we need to ask about any monies that are being used to support a transaction e.g.:
- Purchase of a property or land.
- Purchase of a business.
We cannot simply ask, “where did the money for the transaction come from,” as we need to know “how and from where did you get the money for this transaction.” It is also not enough for us to know the money came from a UK bank account.
Further information concerning AML checks and Source of Funds requirements can be found on the Solicitors Regulation Authority website in the Legal Sector Affinity Group Report.
How can I provide proof or source of funds?
You can provide proof of funds with the following:
- An agreement in principle/mortgage in principle document.
- Bank statements of your deposit and/or cash amount.
- Further bank statements from past months/years to show how your money has built up over time.
- Evidence of you selling a property (if using the funds to buy the new property).
- If you've been gifted the money a letter from whoever gifted the money.
- Further evidence may be requested from the 3rd party e.g., bank statements.
- Evidence of money being left to you in a will.
- Receipts of shares being sold.
In more unique circumstances, if you've been lucky enough to win the lottery or had any other sort of gambling win you will be asked to provide evidence.
We would recommend keeping any evidence relating to the Source of Funds. In this way you can be prepared should your solicitor/legal representative or any other organisation e.g. bank, estate agency asks for it.