Anti-money laundering checks, estate agents and offers

gelato_cat

GDB2222 said:

Suzey said:

GDB2222 said:

This is slightly odd. There’s a range of documents that can be used for AML checks. No reason to use a bank statement. 

If you are asked to show the source of funds, then which other documents would satisfy these checks / show an audit trail other than a bank statement?  Do you mean payslips etc?

I don’t think the EA has to check source of funds. He only has to check identity.  That’s a legal requirement under AML. 

Separately, a lot of EAs do financial checks, to ensure that a buyer can afford the offer they have made. That’s not a legal requirement, but you may have trouble avoiding it.

ID checks = checking you are who you say you are
Anti-money laundering checks = checking that the money you are using hasn't been laundered

The above are two different things.

The below website says EAs have to do anti-money laundering checks.  If they are checking the funds you have, then it means you're giving the EA useful intel about how much money is available to you.

https://hoa.org.uk/advice/guides-for-homeowners/i-am-buying/do-estate-agents-need-proof-of-funds/

"Evidence of funds for cash buyers

"You are classed as a cash buyer if you can afford to buy a property outright, without a mortgage. This means an estate agent will need to see evidence that you have the money, plus they are likely to ask where the money has come from too.

"It is the legal responsibility of the estate agent to check your funds are not the proceeds of crime under anti-money laundering laws. This means you will have to show them your financial position."

user1977

And beyond whatever might be compulsory from an AML point of view, it's not unreasonable for an EA to check that you're good for your money, rather than a time-waster who doesn't actually have the cash to hand. But I wouldn't be concerned about disclosing that I have bags more money than the property is worth.

GDB2222

Suzey said:

GDB2222 said:

Suzey said:

GDB2222 said:

This is slightly odd. There’s a range of documents that can be used for AML checks. No reason to use a bank statement. 

If you are asked to show the source of funds, then which other documents would satisfy these checks / show an audit trail other than a bank statement?  Do you mean payslips etc?

I don’t think the EA has to check source of funds. He only has to check identity.  That’s a legal requirement under AML. 

Separately, a lot of EAs do financial checks, to ensure that a buyer can afford the offer they have made. That’s not a legal requirement, but you may have trouble avoiding it.

ID checks = checking you are who you say you are
Anti-money laundering checks = checking that the money you are using hasn't been laundered

The above are two different things.

The below website says EAs have to do anti-money laundering checks.  If they are checking the funds you have, then it means you're giving the EA useful intel about how much money is available to you.

https://hoa.org.uk/advice/guides-for-homeowners/i-am-buying/do-estate-agents-need-proof-of-funds/

"Evidence of funds for cash buyers

"You are classed as a cash buyer if you can afford to buy a property outright, without a mortgage. This means an estate agent will need to see evidence that you have the money, plus they are likely to ask where the money has come from too.

"It is the legal responsibility of the estate agent to check your funds are not the proceeds of crime under anti-money laundering laws. This means you will have to show them your financial position."

You are right. I am behind the times. Sorry. 

Scotbot

Suzey said:

Have people (especially cash buyers) here experienced situations where they have had to show an estate agent their bank statements etc for anti-money laundering checks when putting in an offer on a house, and then the estate agent has used that information to try and get them to offer more, because the bank statements told them how much cash the buyer has?

I was a cash buyer and gave info on my funds. When asked to up an offer I just said no,that I didn't think the house was worth it

The EA works for the vendor and if the vendor tells them to ask for more they are obliged to. You don't have to alter the offer. The EA won't care about a few thousand extra as it is peanuts for them so most likely the buyer is behind it.

gelato_cat

Scotbot said:

Suzey said:

Have people (especially cash buyers) here experienced situations where they have had to show an estate agent their bank statements etc for anti-money laundering checks when putting in an offer on a house, and then the estate agent has used that information to try and get them to offer more, because the bank statements told them how much cash the buyer has?

I was a cash buyer and gave info on my funds. When asked to up an offer I just said no,that I didn't think the house was worth it

The EA works for the vendor and if the vendor tells them to ask for more they are obliged to. You don't have to alter the offer. The EA won't care about a few thousand extra as it is peanuts for them so most likely the buyer is behind it.

Sorry this happened to you - that's true what you say about the extra few thousand only translating to a few more pounds for the EA.