Solicitor asking for proof of funds

AskAsk

speak to your bank and see how far back you can get statements from them.  it may help if you could send in at least 5 years worth of statements?

princeofpounds

This is one of the pains of the anti-money laundering regime that now runs in the UK. The problem for your solicitor is that he is in some respects legally on the hook but the authorities provide relatively little guidance on what counts as a satisfactory level of evidence as to source of funds. A large overseas gift pretty much counts as a red flag. So he is asking for everything, which personally I think is overkill, but it's his professional standing at risk, not mine. You may well find it is easier to pick a different solicitor if they insist on every single transaction ever being evidenced; many will not go that far, but unfortunately you can't ask in advance what they will do (another red flag!). Any solicitor who is more regularly dealing with overseas business may help... you may find certain communities are more amenable to this kind of thing than others.

MaryNB

dipesh010 said:

MaryNB said:

I've just been through all this and was asked for a large amount of info and a narrative to explain it. My parents gifted me money from abroad.
Money accrued from savings was easy enough because I just had to show money gradually building as I earned. Lump sums going back a few years required a bit more work.

For my own savings I sent bank statements back to Jan 2020 showing savings going in after each payday. I also provided annual statements from my savings account going back three years showing my savings gradually increasing in a relatively uniform fashion.

My parents transferred money to my foreign bank account and I used TransferWise to move it to the UK. I provided a table to explain the numerous tranactions (had to deal with low daily transfer limits) from their accounts to my foreign account to my UK account. Bank statements were included to back up the table.

One parent had to provide several months of current account and savings account statements showing the savings increasing as salary was received. The other had to  get a letter from an employer confirming a retirement payout from 8 years ago and statements from long term savings account where it was held in the meantime.

We each provided a written statement explaining how we accrued the funds and used all the bank statements as reference documents.

 

I am happy to provide them 5 years bank statements. The issue is that I been moving my savings from one bank to another (whoever provides the highest interest rate). I even open ISA saving accounts in few banks and closed those accounts once no longer require. I used cash as a withdrawal/ deposit method when moving money from one bank to another (I know big mistake!! that I now regret|). Do you know what can happen if I cannot provide all these  in depth info? can I still buy a house? 

Solicitor also need my father oversea bank statements pin pointing when that money came into the account. That account is open in 2009 and its very hard to obtain the bank statements going back that many years. If I do manage to provide them then the solicitor will most likely to say now show us other bank statements where this money is coming from. Thats like going around the circle 

I can understand your stress. My dad did some of the transfers by cash and has no accounts online. I was worried he couldn't provide sufficient proof.

You need to phone your solicitor and go through it with her/him in detail. Make sure you know what can be sent by email and what needs to be sent by post (mine was a nightmare for this, we'd email something and she'd eventually respond saying it was needed by post which is tricky when my dad should really be shielding).

Explain to them the evidence you do have and ask if it will be sufficient. Write up a written explanation of how the funds were accrued and how they ended up where they are now and ask your parents to do the same.

I realise  it's very stressful (I was in a right panic given my dad's old school financial habits) but unfortunately solicitors have to make sure they follow anti money laundering regulations. I don't think you'll get very far if you can't meet the requirements. They'll be acting for your lender as well.

Contact all the relevant banks and see if they have a means of providing older account statements. Mine only provides a few years' worth on my online account but I can request older ones. Even if you've closed accounts most banks will keep your info for a few years.

dipesh010

AskAsk said:

speak to your bank and see how far back you can get statements from them.  it may help if you could send in at least 5 years worth of statements?

Current bank can provide 5 years bank statements but is lawyer really going to check them all (highly doubt)?  (waste of papers)
I used to open account at whichever bank used to provide the high interest rate so some money might not be visible with current bank and I've closed accounts with banks I used previously 

Flugelhorn

crikey - good reason to stay with my solicitor who is just happy that I have the money in the bank - doesn't ask where it came from

Slithery

dipesh010 said:
Current bank can provide 5 years bank statements but is lawyer really going to check them all (highly doubt)?  (waste of papers)

If they weren't going to check them then they wouldn't be asking for them.

dipesh010

princeofpounds said:

This is one of the pains of the anti-money laundering regime that now runs in the UK. The problem for your solicitor is that he is in some respects legally on the hook but the authorities provide relatively little guidance on what counts as a satisfactory level of evidence as to source of funds. A large overseas gift pretty much counts as a red flag. So he is asking for everything, which personally I think is overkill, but it's his professional standing at risk, not mine. You may well find it is easier to pick a different solicitor if they insist on every single transaction ever being evidenced; many will not go that far, but unfortunately you can't ask in advance what they will do (another red flag!). Any solicitor who is more regularly dealing with overseas business may help... you may find certain communities are more amenable to this kind of thing than others.

If I let me solicitor know that some money I saved from my student loan. Will this cause more issue? i.e why were you taking the loan if you don't need or you can't use student loan funds to purchase this property? 

With the oversea fundings I have the bank statements going back to 2009 so I am set for that. It also show the money came in as form of GBP and moving back to UK as form of GBP. IF my solicitor going to ask to get bank statements of where the money came from before 2009 then there is nothing to proof. She is in depth investigation like  FBI 

Scotbot

Your bank may not provide 5 years of statements online but they should be able to provide you several years worth on request if not 5 years.  You need to call them. 

tiengomar

MaryNB said:

I've just been through all this and was asked for a large amount of info and a narrative to explain it. My parents gifted me money from abroad.
Money accrued from savings was easy enough because I just had to show money gradually building as I earned. Lump sums going back a few years required a bit more work.

For my own savings I sent bank statements back to Jan 2020 showing savings going in after each payday. I also provided annual statements from my savings account going back three years showing my savings gradually increasing in a relatively uniform fashion.

My parents transferred money to my foreign bank account and I used TransferWise to move it to the UK. I provided a table to explain the numerous tranactions (had to deal with low daily transfer limits) from their accounts to my foreign account to my UK account. Bank statements were included to back up the table.

One parent had to provide several months of current account and savings account statements showing the savings increasing as salary was received. The other had to  get a letter from an employer confirming a retirement payout from 8 years ago and statements from long term savings account where it was held in the meantime.

We each provided a written statement explaining how we accrued the funds and used all the bank statements as reference documents.

 

What happened to common sense?

Slithery

dipesh010 said:
If I let me solicitor know that some money I saved from my student loan. Will this cause more issue? i.e why were you taking the loan if you don't need or you can't use student loan funds to purchase this property?

We can't answer that. Only your solicitor can.