Selling House - Money Laundering - Advice Needed

makeyourdaddyproud

Hi,

We are selling our house and going into rented accomodation. What steps can I take to prevent money laundering by a cash buyer during conveyancing. More importantly, how can I protect our cash.

In addition, we already have 160k of savings in a Lloyds account, and 80k in a Barclays. We were thinking in opening a HSBC account for the proceeds of the house (approx 260k). Will our savings be protected because I am not sure if HSBC is linked to Lloyds.

We are both of working age and cannot afford to lose our savings through a solicitor. Do they bank the money in an account that won't be usurped if they go bust?

Regards.

ljonski

i think you need to try another forum. Not many Old stylers launder money-only odd socks

caitybabes

Hello,

You might want to try posting on the House Buying and Selling board:
http://forums.moneysavingexpert.com/forumdisplay.php?f=16

You should get more responses there.
Hope that helps,
Cait

andygb

I know that there are regulations on purchases of other things by cash (cars for instance have a very low limit for a cash transaction), but are you seriously thinking of selling a house and receiving a suitcase (OK briefcase may be more suitable) of "reddies" in exchange?
As to solicitors, they hold your funds in a client a/c whilst the house sale/purchase is going through, and once the completion has taken place then the money is transferred to your bank account by telegraphic transfer (immediate payment, same day, usually within minutes).
Solicitors are regulated by the Law Society and Solicitors Regulation Authority and client account monies are sacrosanct.
Solicitors do not run banks where there clients can save money, and they must not give financial advice.
I would say that it is very unwise to think that you can undertake the sale of a property without involving a conveyancing solicitor, because there is a lot more to conveyancing than merely handing money over.
There is stamp duty, land registry charges, local authority search fees/charges, and "forgetting" about these will land you in a lot of trouble.

bossymoo

HSBC and lloyds are not connected under the financial compensation scheme, but I think the limit is £85k per "registered body" ie banking group. Eg lloyds, bank of Scotland and Halifax are all the same.

Your conveyancer will have anti money laundering procedures in place to verify the source of funds is legitimate.

andygb

Please see this on receiving cash from clients

http://www.lawgazette.co.uk/inpractice/qa/limit-cash-payments-clients