Who pays AML checks?

Mrframed

Hi everyone,

I'm in the process of purchasing property, and the seller's EA contacted me that I will receive a phone call from company to do the AML check on me and it will be the cost of £60.
The common sense tells me, if someone want to check me why should I pay for it? I read post from 2018 that buyer should not pay for it's own check, perhaps laws changed?

I asked the EA who supposed to cover this? as I explained I don't need to check myself for source of funds.
The reply was: "The £60 is to be paid by yourself as we have to do legal anti money laundering checks this is set by the government and all buyers and vendors have to do this"

Neither broker or conveyancer did not ask payment for such. 
Do I need to pay for the sellers estate agent AML check?

Many Thanks

user1977

In short, no, I wouldn't expect to be paying the seller's EA anything for this (and I'm sure it doesn't really cost £60 anyway).

Annisele

Is there anything unsual about the sale? Eg does this involve the modern method of auction or anything like that? Or are you doing your own conveyancing?

In a standard sale and purchase, I wouldn't expect to pay the seller's EA anything. The seller's EA is the seller's agent, so I'd expect the seller to be meeting any costs. I'd expect to pay my own solicitor/conveyancer and for them to be doing the AML checks.

TripleH

Why should you need to do AML checks for an estate agent?

They are not handling your money, nor should they come into contact with it. Your conveyancer should be expected to do it for you and this should be expected to be acceptable (generally) for the vendor. If you are doing your own conveyancing, then I would expect the vendor's solicitors to carry out the checks. The checks are to see where the funds are coming from and that they are not from criminal activities, are you using / being pushed to use thecestate agent's mortgage broker by them?

This sounds like an attempt by an unscrupulous agent to milk fees. I bought in 2021 and didn't have to do this for the agent.

If you have a conveyancer and they are in contact with your buyer's conveyancer then tell thevestate agent it is in hand.

Mrframed

Annisele said:

Is there anything unsual about the sale? Eg does this involve the modern method of auction or anything like that? Or are you doing your own conveyancing?

In a standard sale and purchase, I wouldn't expect to pay the seller's EA anything. The seller's EA is the seller's agent, so I'd expect the seller to be meeting any costs. I'd expect to pay my own solicitor/conveyancer and for them to be doing the AML checks.

Hi,

No, nothing unusual about purchase, is a freehold no chain, no auction, offer accepted. I have hired conveyancing firm that works closely with broker. The sellers EA using a 3rd party firm that provides an App to upload things. They did mentioned the charge in an email two weeks back though.

Thanks

Mrframed

TripleH said:

Why should you need to do AML checks for an estate agent?

They are not handling your money, nor should they come into contact with it. Your conveyancer should be expected to do it for you and this should be expected to be acceptable (generally) for the vendor. If you are doing your own conveyancing, then I would expect the vendor's solicitors to carry out the checks. The checks are to see where the funds are coming from and that they are not from criminal activities, are you using / being pushed to use thecestate agent's mortgage broker by them?

This sounds like an attempt by an unscrupulous agent to milk fees. I bought in 2021 and didn't have to do this for the agent.

If you have a conveyancer and they are in contact with your buyer's conveyancer then tell thevestate agent it is in hand.

Hi,

This was my straight out thought.
I hired conveyancers from broker, have nothing to do with sellers EA and solicitors, and still awaiting formal offer from the lender. Do not see the reason paying all the fees right now, especially that one. I do have an idea why they charging that, in 2020 they have been imposed highest fine by HMRC for breaching AML compliances.
Wonder if they can pause the process or refuse to provide memorandum of sale if I don't pay this.

Thanks 

sheramber

 do have an idea why they charging that, in 2020 they have been imposed highest fine by HMRC for breaching AML compliances.

Who were fined?

Wonder if they can pause the process or refuse to provide memorandum of sale if I don't pay this.

Is it not the conveyancer who issues the memorandum?

eddddy

sheramber said:

 do have an idea why they charging that, in 2020 they have been imposed highest fine by HMRC for breaching AML compliances.

Who were fined?

68 Estate Agencies have been fined for breaching AML regulations:
https://www.gov.uk/government/news/hmrc-cracks-down-on-unlawful-estate-agents


More generally, Estate Agents are required to do AML checks on buyers. Here are some details:
https://www.propertymark.co.uk/professional-standards/consumer-guides/buying-selling-houses/aml-proof-of-funds.html

Estate Agencies often use 3rd party companies to do AML checks. But most estate agencies cover the cost of AML checks themselves, they don't charge buyers - and the cost is probably much less than £60.

Here's a price list from a random company that seems to do AML checks for Estate Agents (I have to admit that I don't really understand what the different checks are)...
https://veriphy.com/pricing/

Surrey_EA

Almost guaranteed this is Purple Bricks.

Not a proper estate agent, also in a fairly precarious position as a business currently.

sheramber

My AML check was done by my solictor as part of the buying process.

Surrey_EA

sheramber said:

My AML check was done by my solictor as part of the buying process.

And legally has to be done by the estate agent, both with whom you might be selling through, as well as buying with, in addition to the checks carried out by your solicitor.