ANTI MONEY LAUNDERING LEGISLATION

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Purchasing property in the UK is a common method used by organised criminals to launder the proceeds of criminal activity. The sheer size of the property market in the UK and the high value of property assets means that extremely large amounts of criminal funds can be ‘cleaned’ in a single transaction, 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. For this reason, estate agents must do these checks on everyone buying a property to make sure the money is coming from a legitimate source—they can be fined or imprisoned if they don't.

Swain Hennessey Estate Agents are legally obliged to ask for proof of funds at two different stages and for two different reasons. we will ask for proof of funds before you put an offer in, this is make sure you have a genuine interest in the property to avoid any disappointment for the seller. However, you don’t have to provide proof of funds before putting an offer in.

Once an offer is accepted proof of funds of legally required, we are not only checking you have the money to purchase the property but also that you haven’t acquired it through criminal means. It is at this stage that you must provide proof of funds.

When it comes to providing proof of funds, you can do so via the following means:

• an agreement in principle/mortgage in principle
• bank statements of your deposit amount (for mortgage buyers)
• bank statements of your cash amount (for cash buyers)
• 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
• 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, you may be asked to prove so. Likewise for gambling winnings where you could be asked for receipts/evidence of winnings. It's best practice to retain evidence of where all the funds going towards your purchase have come from, this way you can be prepared should we ask for it.

Proof of ID
As it is our legal duty to make sure that you are who you say you are, Swain Hennessey Estate Agents will ask you for proof of your current address and your identity. This process is called ‘Due Diligence’ which forms part of our checks. You will be asked for some of the following forms of proof of identification.

Proof of name:

• current passport
• residence permit
• current UK/EU photo driving license
• HMRC (Inland Revenue) Tax Notification
• state pension or benefits book/notification letter

Proof of address:

• a current tax bill from your local authority
• rent card or tenancy agreement from your local authority
• recent mortgage statement
• bank statement
• utility bill (not mobile)

For Anti-Money Laundering (AML) checks, you typically need two documents: one photo ID (like a passport or driving license) and one proof of address (like a recent utility bill or bank statement), confirming your name, date of birth, and current residence, with address proofs usually dated within the last three months. Specific requirements vary by institution, but common accepted documents include government-issued photo IDs and bills or official letters for address verification. 

Key Things to Remember:

• Certification: For non-face-to-face verification, originals might need certification by a      solicitor or other authorized person.
• No  Photo ID?: If you lack a passport or driving license, you may need multiple address proofs or alternative government-issued documents