Proof of funds transfer?

Hoenir

Deckie said:

user1977 said:

Exchange of contracts doesn't have any legal relevance in relation to proving the source of funds being sent later for completion, I suspect this is just the solicitors' own policy to avoid any additional stress/hassle between exchange and completion if there is trouble with the transfers or producing evidence of them.

Thanks User1977, the solicitor says that he needs evidence of the final transfers in order to sign off the file before exchange of contracts. I too think it’s just his own policy for completeness rather than it being a legal requirement.

AML regulations are a legal requirement.They'll be audited annually in this regard.  Solicitor carries the can for non compliance. As a professional firm something they'll negate at all costs. 

Deckie

Hoenir said:

Deckie said:

user1977 said:

Exchange of contracts doesn't have any legal relevance in relation to proving the source of funds being sent later for completion, I suspect this is just the solicitors' own policy to avoid any additional stress/hassle between exchange and completion if there is trouble with the transfers or producing evidence of them.

Thanks User1977, the solicitor says that he needs evidence of the final transfers in order to sign off the file before exchange of contracts. I too think it’s just his own policy for completeness rather than it being a legal requirement.

AML regulations are a legal requirement.They'll be audited annually in this regard.  Solicitor carries the can for non compliance. As a professional firm something they'll negate at all costs. 

Thanks Hoenir, is the legal requirement to provide evidence of every transfer of funds or just to provide evidence that the funds exist and the original source?

EssexHebridean

Deckie said:

pumas said:

I made transfers from several accounts, over 2days to the solicitor. To speed things up I also transferred from 'account h', and sent proof of funds, no problem.

Thanks Pumas, I could make the transfers from the individual savings accounts and cut out the current account and CHAPS payment but the solicitor wants to receive a single payment rather than about 20 over several days due to daily withdrawal limits.

In which case, I’d be smiling politely and saying that you can either do the single transfer, or the proof of the transfers, but not both, so in light of that new requirement, you’ll be making individual transfers from the relevant accounts as financially that is a better position for you in any event. Then just proceed to make the transfers in the way that works best for you. (That will not only save you the loss of interest, but also the chaps fee too). List the amounts transferred and the days they have been done, then provide that list to the solicitor once all are done to make it easier for their accounts to track everything down and ensure it get allocated correctly. Also - make sure to do this in ample time so that there is sufficient time to get everything straightened out.

The biggest issue here to me is that a requirement is being put on you to have a greater sum than the protection limit in an account for a potentially protracted length of time - and I agree with the person who said this is going to be a policy thing. 

EssexHebridean

Deckie said:

se2020 said:

If the bank goes bust the £85k protection is extended to £1million for temporary (max 6mths) higher balances as a result of a property transaction

Thanks se2020, I didn’t know that.

I know this works for the proceeds of a sale, for example, but does it work in reverse if the money is funds ahead of a purchase? 

Deckie

EssexHebridean said:

Deckie said:

pumas said:

I made transfers from several accounts, over 2days to the solicitor. To speed things up I also transferred from 'account h', and sent proof of funds, no problem.

Thanks Pumas, I could make the transfers from the individual savings accounts and cut out the current account and CHAPS payment but the solicitor wants to receive a single payment rather than about 20 over several days due to daily withdrawal limits.

In which case, I’d be smiling politely and saying that you can either do the single transfer, or the proof of the transfers, but not both, so in light of that new requirement, you’ll be making individual transfers from the relevant accounts as financially that is a better position for you in any event. Then just proceed to make the transfers in the way that works best for you. (That will not only save you the loss of interest, but also the chaps fee too). List the amounts transferred and the days they have been done, then provide that list to the solicitor once all are done to make it easier for their accounts to track everything down and ensure it get allocated correctly. Also - make sure to do this in ample time so that there is sufficient time to get everything straightened out.

The biggest issue here to me is that a requirement is being put on you to have a greater sum than the protection limit in an account for a potentially protracted length of time - and I agree with the person who said this is going to be a policy thing. 

Thanks EssexHebridean that’s probably how we’ll go.

Deckie

EssexHebridean said:

Deckie said:

se2020 said:

If the bank goes bust the £85k protection is extended to £1million for temporary (max 6mths) higher balances as a result of a property transaction

Thanks se2020, I didn’t know that.

I know this works for the proceeds of a sale, for example, but does it work in reverse if the money is funds ahead of a purchase? 

I’ve not examined it in detail but it says it’s for property transactions - sale or purchase.
https://www.fscs.org.uk/making-a-claim/claims-process/temporary-high-balances/

horsewithnoname

Deckie said:

Several months ago I provided the solicitor with proof of funds for our purchase including statements showing where the funds came from which he was happy with. The funds are sitting in several accounts for protection and at the appropriate time I will need to transfer them all into one current account to do a CHAPS payment to the solicitor just before completion. For logistical reasons we will need at least 2 weeks between exchange and completion. With only a few weeks to go the solicitor is saying that he also needs to see evidence of the transfers into the current account before exchange of contract.

We’re not very happy with this because funds taken from some accounts cannot be returned if anything happens before completion and having the full amount sitting in a current account for even two weeks will mean hundreds of pounds in lost interest. Albeit a low risk, what happens if the bank goes bust in the period before completion? We lose all the funds apart from the guaranteed £85,000.

Does anyone know whether we legally need to provide evidence of the transfers into the current account, so long before it needs to be paid out? I’m sure the legal requirement is only to provide proof that the funds exist and where they came from. Even if I did provide evidence of the transfers, it doesn’t prove that I won’t be using other dodgy money laundering funds to pay him on the day.

I recently did similar, it was money for a deposit, I sent statements showing the total in 3 accounts, then transferred it all to one account and sent it to the solicitor, the only fuss I got was off the bank and I had to ring them and convince them I wasn’t an idiot being scammed 🙄. But I had no trouble from the solicitor. 

Deckie

horsewithnoname said:

Deckie said:

Several months ago I provided the solicitor with proof of funds for our purchase including statements showing where the funds came from which he was happy with. The funds are sitting in several accounts for protection and at the appropriate time I will need to transfer them all into one current account to do a CHAPS payment to the solicitor just before completion. For logistical reasons we will need at least 2 weeks between exchange and completion. With only a few weeks to go the solicitor is saying that he also needs to see evidence of the transfers into the current account before exchange of contract.

We’re not very happy with this because funds taken from some accounts cannot be returned if anything happens before completion and having the full amount sitting in a current account for even two weeks will mean hundreds of pounds in lost interest. Albeit a low risk, what happens if the bank goes bust in the period before completion? We lose all the funds apart from the guaranteed £85,000.

Does anyone know whether we legally need to provide evidence of the transfers into the current account, so long before it needs to be paid out? I’m sure the legal requirement is only to provide proof that the funds exist and where they came from. Even if I did provide evidence of the transfers, it doesn’t prove that I won’t be using other dodgy money laundering funds to pay him on the day.

I recently did similar, it was money for a deposit, I sent statements showing the total in 3 accounts, then transferred it all to one account and sent it to the solicitor, the only fuss I got was off the bank and I had to ring them and convince them I wasn’t an idiot being scammed 🙄. But I had no trouble from the solicitor. 

Thanks Horsewithnoname, I sent the statements of the 7 accounts but you didn’t need to send evidence of the transfers to the one account. Your solicitor didn’t mind so I think ours is just trying to cover himself unnecessarily.