Anti money laundering precautions for ISA savings

RosemaryBo

Hi,
I regularly move ISA and non-ISA savings round to get the best available interest rate at the time. This leaves me with various empty accounts which I would like to close. However, I was wondering how this would affect anti money laundering regulations. I don't keep a record of all the places that money has been banked with and I don't keep paper statements either.
So is it enough just to say that they are ISA savings, or do I need to keep proof of every online account the money has been in and when?
Thank you

user1977

You’d better start keeping records, and possibly backtrack to see what statements you can still get a hold of.

flaneurs_lobster

One reason NOT to close accounts but to keep them open (with minimal funding if required) is that it will normally give access to historical transaction data and statements.

I've heard stories (on here?) of people being asked for the source of every £ in their account but I don't think it should be a major consideration - unless there are transactions that might be seen as flags (payments in/out of crypto platforms or gambling sites, significant overseas transactions etc) you'd have to be very unlucky to be caught in a general random "trawl".

Bigphil1474

I had to provide nearly 3 years of statements to prove that my savings had come from an inheritance 3 years before - plus a copy of the will, the statement from the person transferring the money to my account and the statements from my bank account and both my savings accounts. Any money you are using to purchase a property has to be accounted for.

eddddy

RosemaryBo said:

So is it enough just to say that they are ISA savings,...

Realistically, you would need evidence (statements etc). A solicitor can't really just 'take your word for it'.

Otherwise somebody could simply say their money is ISA savings, when it's really the proceeds of drug dealing, etc.

Uriziel

Even if you close your account the bank will need to provide bank statements for the last 6 years if requested.

Please bare in mind that a solicitor is not your mate from the pub and you not being able to provide source of income or evidence is absolutely not their problem in the slightest and they can very simply turn you down.

Lerennie

I am in the same position as OP in that I have moved monies from a house sale five years ago to keep under FSCS and to get the best rates possible.  As my long term partner is non tax payer he also holds some of my money from this sale (although the property was mine alone).  Does anyone see an issue with the money not all being in my name and being transferred between only us as we aren't married but have been common law partners for fifteen years.  

poseidon1

Lerennie said:

I am in the same position as OP in that I have moved monies from a house sale five years ago to keep under FSCS and to get the best rates possible.  As my long term partner is non tax payer he also holds some of my money from this sale (although the property was mine alone).  Does anyone see an issue with the money not all being in my name and being transferred between only us as we aren't married but have been common law partners for fifteen years.  

No such thing as common law partner as a legally recognisable quasi married status . The legal system treats your partner as nothing more than a flat mate.

So his holding some of your cash in his own account when time comes for you to buy another property will undoubtedly lead to awkward MIL  source of funds questions which would likely not have arisen had you been married over the relevant period.

 Must say pretty brave of you to entrust some of your property proceeds to someone you are not married to, whatever your original reasons for doing so.

Albermarle

Lerennie said:

I am in the same position as OP in that I have moved monies from a house sale five years ago to keep under FSCS and to get the best rates possible.  As my long term partner is non tax payer he also holds some of my money from this sale (although the property was mine alone).  Does anyone see an issue with the money not all being in my name and being transferred between only us as we aren't married but have been common law partners for fifteen years.  

If you have evidence of the transactions it should be OK.
However if you are buying the house in your name and he gives you money that you then use in the purchase, he may well have to sign a document, saying this is an outright gift and he will have no financial interest in the property in future.
Although in your eyes it is 'your money' as soon as you gave it to him to save, it became legally his money which he now has to gift back. 
It is quite a common situation, often when a parent gifts money towards a property purchases. The mortgage lender needs to know it comes without strings.

but have been common law partners for fifteen years.  
In legal terms there is no such thing as a common law partner, so this has no relevance to the money issues.

It is generally recommended to get married/civil partnership, as this avoids quite a few potential future problems, but obviously that is a choice for you both to make. 

user1977

Lerennie said:

I am in the same position as OP in that I have moved monies from a house sale five years ago to keep under FSCS and to get the best rates possible.  As my long term partner is non tax payer he also holds some of my money from this sale (although the property was mine alone).  Does anyone see an issue with the money not all being in my name and being transferred between only us as we aren't married but have been common law partners for fifteen years.  

Are you buying in your sole name again or jointly? If jointly then it's not going to be an issue how your money is split across your accounts.

Lerennie

Thank you for your comments.  We have decided to become civil partners, I didn't realise mixed sex couples now could, (I must've been under a rock the last five years!) There will then be legal recognition of our relationship without having to get married (both divorced so personal choice not to remarry).  Property will be in my name with a pre-nup stating only joint assets following the partnership will be counted should we dissolve the partnership. He is intending to purchase a property overseas in his name only.  Is there any issues in doing properties in your own names in a civil partnership?