Proof of monies

Gretus

Hello,

We are in the final stages of our first mortgage purchase and the solicitors are now asking us to prove how we accumulated deposit/stamp duty monies. We have provided them with a savings statement, HMRC tax return forms, however they are insisting we prove how we deposited large sums (£1000-£3000) in cash. We have told them that we have saved in cash (withdrawn regularly from the main salary accounts) and then deposited it to Savings, but they're not having any of it.

How else do we prove that we have saved cash over the years? Is there a written law stating that one cannot save in cash then deposit larger sums to the savings account as that can be taken as a fraudulent money launder? I mean - the salaries are enough to save the required sum in a year, let alone few, which was accumulated over a course of years.

This is getting ridiculous and we might end up in a street if they cannot accept the cash savings.

TIA for your replies

marksoton

So show them the linked transactions between accounts......

mildredalien

You'll need to show the bank statements of the accounts you withdrew cash from and the statements of the savings accounts you deposited the money into - they should be able to see that the dates match up.

How long were the gaps between withdrawing cash and depositing it? Why did you do this rather than use using a standing order/bank transfer process that would have meant an easy paper trail and no interest lost?

LittleMax

So you are saying you have withdrawn cash from your current account, kept it at home, then when you have saved £3k you have taken it out from under the mattress and put it in a savings account?

Why wouldn't you just transfer the money from the current account into the savings account?

So yes, it looks like money laundering.

Gretus

It wasn't going through accounts.

A salary comes in every week. We withdraw the entire salary, calculate the expenditure and put some to the 'piggy bank'. Then, at the end of a certain period, let's say a month or two, we bring the entire lump of cash (500-1000 sometimes more) and deposit into a savings account.

The money isn't moving between accounts. The money is moving in cash, so how do you prove that?

mildredalien

Well it is moving between the account your salary goes into each week and the savings account. You may be able to show your budget and outgoings to demonstrate that the moneys deposited were saved in cash from your salary and not coming from some nefarious scheme... however it's pretty unusual these days to do all financial dealings in cash and to just have it sitting around at home!

Gretus

Where does it say that we cannot save under a mattress? We did some transactions via accounts but some were cash savings as we weren't sure when we'll need some of the money. Not everything needs to be through a bank account in our household as even the bills are paid by cash in the post office. We didn't know there's such a thing as proof of saved cash when you're actually working and getting a weekly regular salary throughout the years. It's not like a lump sum of 100k just fell out of the sky. We're talking about a thousand or two over the course of months, sometimes years. How can this be laundering at the end of the day when the salaries are more than enough to cover the savings? Who's to say we didn't save and instead spent the entire cash withdrawal on take-outs and boozy nights out. This is ridiculous

LittleMax

Where are you withdrawing the salary from?

Gretus

Bank or cash machines

LittleMax

Are you self employed? - you talk about salary and also tax return.

LittleMax

Gretus wrote: »

Bank or cash machines

So this will show as withdrawals on your bank statement. Have you shown these?