Estate Agent requesting full bank statement for POF

jenand8285

Hi,

I am purchasing a new home, funded mostly by the sale of my current house. I will be making a £4k cash contribution as that will bring it to the next LTV bracket.

Foolishly, when I did the AIP I put down the amount I actually will borrow and so subsequently had to provide the Estate Agent with proof of the £4k.

I sent over a bank statement showing the balance of the account only and did no include the transactions. The difference between the opening balance and the closing balance is only £400 so hardly alarming and clearly not much movement in the transactions. But now the estate agent are insisting on seeing the full statement. I am reluctant to do this purely out of principle!

So my question is can the estate agent insist on full transactional information?

AnotherJoe

Do you have another bank account with few or no transactions? A saver account?

Xfer the money into that and print it out perhaps?
Or go up their management chain and ask where legislation states they need to see your transactions.
Or just open a new account, say Marcus, xfer your money into that and show them a full printout.

Surrey_EA

I don't think I've ever asked to see a bank statement from a buyer.

A letter/email from the buyer's solicitor along the lines of:

"I am instructed by jenand285, and I am able to verify that they have sufficient funds, in addition to their mortgage arrangements, to cover a property purchase of £xxx,xxx."

Should always suffice.

jenand8285

Thanks! I know for certain I did not provide it when I was a FTB, the balance only sufficed.

When I asked why they needed to see it this was her reply

"Its for money laundering purposes. I know its not a large amount but its in our policies for AML checks."

The EA is Housesimple. They upsell at every opportunity so I don't want them seeing anything more than they absolutely need to.

Surrey_EA

If it's for AML, a letter from solicitor will definitely be sufficient for them to have complied with their obligations.

Ghoti

Money laundering? But the EA is not the one dealing with the transaction; that’s the solicitor’s responsibility. If they are adamant, maybe send them a statement with all details blacked out, apart from the amount of money going in and out?

LawAbiding

EA's do wind me up.

It's the solicitors responsibility to ensure money laundering rules are complied, not the EA's.

Download it, black out everything apart from what you need to show and send it.

It's likely they will then think, what are you hiding by blacking it out, though!

sillyhilly

A redacted statement will most likely, and should, be refused.

Estate Agents are now caught under the Money Laundering Regulations. Uptake is still intermittent, but the 'larger' EA's are now complying to a certain extent. They are required to understand source of funds, which includes verifying that it is through legitimate means, such regular savings instead of, for example, dealing drugs.

Just because an EA does not handle any funds as part of the transaction, does not mean their AML requirements are any less than a lawyer. Both the EA and lawyer are caught by exactly the same Regulations.

A statement from the lawyer will be more than sufficient. And in your case, the EA seems to be going to the nth degree, but it'll be their own internal policy.

eddddy

jenand8285 wrote: »

I sent over a bank statement showing the balance of the account only and did no include the transactions.

Do you mean you 'edited' the image in some way - maybe to hide the transactions? Or is it an (easily faked) online printout?

My guess is that maybe the EA doesn't trust whatever you've sent - they either think it's been doctored or they don't regard it as a sufficiently 'official' statement.


As an example, one company [not an EA] wouldn't 'accept' a statement that I got printed out from a self-service machine in a bank branch, because it would be too easy for me to 'mock-up' myself - so I asked a bank assistant to watch me print it, and stamp it with the branch stamp. Then it was acceptable.

Alternatively, you could ask the EA if you can bring in a detailed statement, which the EA can look at but not copy. (I know EAs who have agreed to this.)

Or maybe even offer to show the EA your account balance on your banking app on your phone (because that would be much harder to fake).

Surrey_EA

Ghoti wrote: »

Money laundering? But the EA is not the one dealing with the transaction; that’s the solicitor’s responsibility.

Wrong!

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/801373/EAB.pdf

Surrey_EA

LawAbiding wrote: »

EA's do wind me up.

It's the solicitors responsibility to ensure money laundering rules are complied, not the EA's.

People who don't know the law do wind me up!

It is the EAs's responsibility, as well as the solicitor, to ensure AML rules are complied with.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/801373/EAB.pdf

That doesn't mean they should expect to see a bank statement with all transactions on, but they do need some sort of verifiable documentation.