Money Laundering Requirements

netwalk

We have just instructed Conveyancing Warehouse to act on our behalf for the sale of our property.

Their paperwork arrived today for signing along with their apparent requirements under Anti Money Laundering Regulations. The paperwork states they require all parties to the sale to to send their original passport/driving licence (or a certified copy) and original debit/credit card or utility bill to them by post before they will act.

Are these requirements standard practice? It all seems a bit draconian to me, not to mention risky, to be posting these documents around the country by Royal Mail to just buy a property. Has anyone had buyers refusing to provide this information to their solicitors?

Julian

AndrewSmith

Perfectly normal to be asked for this information. If you refuse to supply it the conveyancer may refuse to act for you.

Get youor mortgage broker to certify copies of the said documents for you. As he/she is FSA regulated this will be acceptable to the conveyancers.

netwalk

Thanks Andrew. A long time since I purchased or sold a property so this is all new to me. I've no problems with sending the information it was just in case the buyer of our property had any objections. Julian.

wigginsmum

It's standard - the AML laws (and JMLSG Guidance Notes 2006) require companies to verify identities of clients and the source of funds in transactions over a certain size (think it's EUR 15,000).

linda.b_4

We just went into estate agents and they faxed photocopies of documents and verified them. Saves posting them and possibly losing them in the postal system.

garbadine

Me and my other half have also just instructed conveyancing-warehouse.co.uk, and we too had to send of documents to prove both of our identities.

Am very impressed with the service so far - I posted the documents on Monday (special delivery to arrive by 1pm), and have just received them back from the solicitors.

Just hope everything else in the process is so easy.....!

courtjester

linda.b - I presume you mean that the documents were faxed to a solicitor - frankly I doubt that that would satisfy the authorities if the solicitor's practices were examined. It may be that some agents are happy to take this responsibility on themselves (checking original documents) with agreement with certain solicitors offices, but it seems shaky from their perspective and that of the solicitor in the event of a problem arising on a dubious transaction. These are after all criminal offences.

The primary responsibility for applying money laundering regulations (since 2003) lies with the solicitor or licensed conveyancer who is expected to identify the parties fully before undertaking the transaction. For most people that means a check of the original passport or other complying documents - hence it is common for the passport to be either taken into the office or sent by post (recorded delivery should be sufficient).

I would suggest taking a photocopy of the relevant pages of the passport in case the worst happens so that a replacement could be ordered.

dunstonh

a fax wouldnt satisfy the requirements. However, that doesnt mean everyone does it properly.

maryjane01

If you are selling I am sure CW only need to see your ID and that of anybody else you jointly own the property with.

I would expect the buyers solicitor to be checking their ID, not your buyer posting off their their ID to your solicitor. As a buyer, I only had to show my ID to my solicitor, not the sellers.

courtjester

Indeed it is the responsibility of each party's lawyers to check out their own 'client', not to check the other side's client. The lawyers would then be liable for their verifications.

If the buyer proved to be unrepresented that would likely set alarm bells ringing and the buyer would be expected to provide financial references to confirm that the money to finance the purchase is from a legitimate source.