Why do I need to explain where my funds are coming from?
As part of your verification, the organisation that requested your Thirdfort check may ask you to evidence the funds indicated in your Source of Funds Questionaire. By law, when dealing with large amounts of money, solicitors and other regulated businesses have to understand where that money comes from and my require proof of this in order to proceed.
Why is this so important in the property market?
Property transactions are high-risk and involve the transfer of large sums of money. This makes the property market a big target for fraudsters and criminals. With an excess of 4 billion pounds of fraud in conveyancing per year, solicitors and law firms have an obligation to identify any client who pays money and to know how it was generated. Proving a client's source of funds is an essential phase in the conveyancing process - by law, a solicitor cannot proceed with your purchase without this evidence. This is to limit the potential for fraud, protecting you as well as your solicitor.
What are Anti-Money Laundering (AML) checks?
An AML check is an identity assessment to ensure that any person transferring or investing money is who they claim to be. This ensures that the money involved comes from a legitimate source. AML regulations are mandated by both national and international authorities globally and these types of checks place a wide variety of screening and monitoring obligations on financial institutions and law firms. For the legal industry, part of these checks involves verifying the source of a client's funds.
Who is required to complete the Source of Funds task?
This task is required for clients who meet the following criteria:
Those who are purchasing a property.
Those who are purchasing a property as a shared owner.
Those who are gifting money into a transaction.