Understanding Source of Funds Checks
When buying a property in England or Wales, all conveyancing solicitors are legally required to verify the source of the money being used to fund the transaction.
These checks form part of UK Anti-Money Laundering (AML) Regulations and are designed to prevent money laundering, fraud and financial crime.
RG Law's conveyancing team must be able to trace your purchase funds from their original source right through to the bank account being used for the property transaction. Simply showing that money is held in your account is not sufficient. We must understand and verify how those funds were accumulated over time and transferred.
What Is Source of Funds?
Source of Funds refers to the origin of the money being used to purchase a property, including:
Savings accumulated over time Proceeds from the sale of another property Inheritance Gifts from family members Investments Business profits Compensation payments Pension lump sums Other legitimate sources of wealth Depending on your circumstances, we may need to review documents covering several months or years to establish a clear audit trail.
Your Responsibility as a Client
It is your responsibility to provide the information and supporting evidence required to verify your Source of Funds.
The information you provide in our questionnaires should accurately explain where your money came from and how it has moved between accounts before reaching the account being used for your property purchase.
Providing complete information at an early stage helps avoid delays and allows your conveyancing transaction to progress smoothly.
What Evidence May Be Required?
The documents we request will depend on your individual circumstances but may include:
Bank statements Savings account statements Completion statements from previous property sales Grant of probate and estate documents Gift letters and identification from the gift provider Investment statements Pension withdrawal statements Business accounts Payslips and employment records Additional documents may be required where funds have been transferred between multiple accounts or originate from several sources.
Complete Your Source of Funds Questionnaire
Our Source of Funds questionnaires have been designed to help you provide the information we need quickly and accurately (samples available to view below).
By completing the appropriate questionnaire, you can clearly explain your financial circumstances and understand the supporting documents that may be required.
Helpful Videos and Guidance
We have also created a series of Source of Funds videos to help explain the process, common questions and the evidence that may be required (videos below).
These resources will help you prepare the necessary documentation and reduce the likelihood of delays during your conveyancing transaction.
