ID Verification

moneysavinghero

Just shows how pointless all these money laundering requirements are. You are just going to use the 2k to pay down your mortgage without any checks. If only the master criminal money launderers could think of such a cunning plan.

davidmcn

AliceBanned said:

PS Basically I think that technically would still require anti-money laundering checks, even if it went straight to repay my debts, because their repayment is a condition of the mortgage. It could amount to mortgage fraud to not mention it, I think, but was never sure so just wanted to be on the safe side. 

All your lender cares about is that the debts are settled, I'm not sure why they would be concerned about where the money came from. 

AliceBanned

davidmcn said:

AliceBanned said:

PS Basically I think that technically would still require anti-money laundering checks, even if it went straight to repay my debts, because their repayment is a condition of the mortgage. It could amount to mortgage fraud to not mention it, I think, but was never sure so just wanted to be on the safe side. 

All your lender cares about is that the debts are settled, I'm not sure why they would be concerned about where the money came from. 

True, but at the time of applying I thought I could repay the debts in time from my salary, and would still need a gifted deposit for the purchase price. It depended on other factors such as final costs of selling my previous flat, any additional sudden costs along the way. I will never buy a property with such tight margins again, but I was getting encouragement from my broker, when another broker told me I couldn't afford the property. I had already reduced it down from the original asking price so it seemed a good price, didn't think I could go any lower. In the beginning I was just happy they accepted my lower offer as a year or two ago I could not have afforded such a property in the area. Also the broker would see my income and outgoings, and would know the margins were too tight,and that the affordability was still based on having gifted money (whether for debts or not, according to my broker)  but due to a long delay and a slight salary increase I managed it in the end. The last thing I wanted was a massive question mark to appear between exchange and completion, so I was as transparent as possible, and paid a price for that in hassle!

AliceBanned

davidmcn said:

AliceBanned said:

PS Basically I think that technically would still require anti-money laundering checks, even if it went straight to repay my debts, because their repayment is a condition of the mortgage. It could amount to mortgage fraud to not mention it, I think, but was never sure so just wanted to be on the safe side. 

All your lender cares about is that the debts are settled, I'm not sure why they would be concerned about where the money came from. 

True, lender was happy. I phoned them when I was getting hassled about ID verification and they were far more relaxed about it all! It's something to do with either a) my conveyancer the law c) my conveyancer and the law that just got ridiculous and they wouldn't back down. Because at the end of the day the risk would sit with them of criminal charges, if they accidentally allowed money-laundering into their firm. As a previous post says, why would they take that risk? That's how I have understood it. The amount is irrelevant - it's all about the conveyancer being extremely risk averse, because the regulations made them this way, against all logic in my opinion.

Thrugelmir

davidmcn said:

AliceBanned said:

PS Basically I think that technically would still require anti-money laundering checks, even if it went straight to repay my debts, because their repayment is a condition of the mortgage. It could amount to mortgage fraud to not mention it, I think, but was never sure so just wanted to be on the safe side. 

All your lender cares about is that the debts are settled, I'm not sure why they would be concerned about where the money came from. 

Lenders are the ones that get fined if they fail to perform and conduct adequate checks. 

AliceBanned

My solicitor phoned me this morning to say they need to verify my ID via Zoom this afternoon! Even though they sold my flat two weeks ago, but now need to verify for my purchase, saying that post office verification wasn't enough. We should be exchanging today or tomorrow, why do this now?!!!

davidmcn

Thrugelmir said:

davidmcn said:

AliceBanned said:

PS Basically I think that technically would still require anti-money laundering checks, even if it went straight to repay my debts, because their repayment is a condition of the mortgage. It could amount to mortgage fraud to not mention it, I think, but was never sure so just wanted to be on the safe side. 

All your lender cares about is that the debts are settled, I'm not sure why they would be concerned about where the money came from. 

Lenders are the ones that get fined if they fail to perform and conduct adequate checks. 

Yes, but unless the funds are for some reason going via them (or the solicitors) I'm not sure why they would need to check up on the source of funds, any more than they would need to look into how you arranged settlement of debts before you made your application.

AdrianC

moneysavinghero said:

Just shows how pointless all these money laundering requirements are. You are just going to use the 2k to pay down your mortgage without any checks. If only the master criminal money launderers could think of such a cunning plan.

How are you paying the mortgage down?

Are you walking into a branch with a wad of £20s? Because, if you are, then you're going to be facing a raised eyebrow.

Remember, once you've opened the mortgage, you've gone through the KYC and AML checks. The solicitor is doing those checks on you because you're a new client.

AliceBanned

AdrianC said:

moneysavinghero said:

Just shows how pointless all these money laundering requirements are. You are just going to use the 2k to pay down your mortgage without any checks. If only the master criminal money launderers could think of such a cunning plan.

How are you paying the mortgage down?

Are you walking into a branch with a wad of £20s? Because, if you are, then you're going to be facing a raised eyebrow.

Remember, once you've opened the mortgage, you've gone through the KYC and AML checks. The solicitor is doing those checks on you because you're a new client.

I'm not sure where this thread is going. I didn't make the comment about the anti money laundering checks being pointless?
I'm not a new client as they checked my identity when they sold my flat? Which went through two weeks ago. I don't understand why they are now doing this check today, maybe they genuinely think something is wrong! I;m happy to do it but it seems a bit excessive..there is no cash involved..just mortgage and deposit from sale of flat. 

moneysavinghero

AdrianC said:

moneysavinghero said:

Just shows how pointless all these money laundering requirements are. You are just going to use the 2k to pay down your mortgage without any checks. If only the master criminal money launderers could think of such a cunning plan.

How are you paying the mortgage down?

Are you walking into a branch with a wad of £20s? Because, if you are, then you're going to be facing a raised eyebrow.

Remember, once you've opened the mortgage, you've gone through the KYC and AML checks. The solicitor is doing those checks on you because you're a new client.

Who bothers walking into a branch these days. Bank transfer.

Yes this is the point i am making. Once you have opened the mortgage with your clean 10% deposit that you provided evidence for, you have then passed the KYC and AML checks. You can then use your dirty money to pay the mortgage down. At the end your 10% clean money is turned into 100% clean money when you sell the house. Money laundered - check. AML passed - check.

All pointless and only inconveniences the genuine people. 

Not that the big scale money launderers need to even go through the above, they will all have their own solicitors that will happily overlook things.