AML checks by estate agents

mills112

I have come across a couple of estate agents who insist on doing the full AML checks for purchases and sales (that is on both the buyers and the sellers), where you not only have to show proof of funds but also proof of how you got them.

This is generally done at the legal stage by solicitors, so I feel they are over complicating things.

Have you guys come across this often?

For example, we had to pay £120 when we sold a flat last year in London so the estate agent could carry out AML checks on my husband, who was the owner of the property. They also did AML checks on the buyers so I think they also charged the buyers for this as well. I feel it is a money spinner for them.

Flugelhorn

what are they looking for when doing AML checks on the sellers?

Bigphil1474

We sold and bought in 2024 and the estate agents didn't do any of that. Maybe it's a new thing?

They could be checking the sellers didn't buy the house with dodgy cash years before, particularly pre 2018?

Albermarle

Similar recent thread could be of interest.

What personal information do estate agents need from you when you sell your house? — MoneySavingExpert Forum

mills112

https://forums.moneysavingexpert.com/discussion/comment/81909688#Comment_81909688

for us it was ID. the EA has known us for many years so there was no need to show where the money comes from, but I don't know what they check if they don't know you.

they did ask for my husband's salary.

mills112

my husband has asked a couple of friends who are EA and they said it is new laws that have come in this year, which enforces all EA to do AML checks more vigorously.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81910533#Comment_81910533

One issue with the AML checks for conveyancers, is that there are no black and white rules. So each one can decide how deep they want to go in with the checks. Presume will be the same with EA's.

EssexHebridean

There are however some basic outlines about when AML checks are necessary.

mills112

https://forums.moneysavingexpert.com/discussion/comment/81910671#Comment_81910671

yeah, there will be prescriptive guidance on how to do AML with some basics but I think it does require judgement and the degree of investigation will be dependent on the personal situation of the person being assessed.

My concern about EA doing AML checks is that they may not be the brightest of people to make decisions and can only follow book rules, without the ability to think for themselves. Having said that, this won't be any different to solicitors!

also i worry about how secure the data will be treated as i doubt EA have secure systems in place to protect customer data like the banks and financial institutions and really these AML documents should have that level of security for storage so that they can't get stolen by thieves.

for example my FIL has been asked to send in 6 months of bank statements from all his bank accounts to the EA for a flat that he is buying. together with photo ID and proof of address. this is sensitive data and i doubt they will store them securely.

mills112

https://forums.moneysavingexpert.com/discussion/comment/81910692#Comment_81910692

i think they are all compulsory now from what the EA is saying. In the past they relied on the solicitors to do it, but I think they are now being forced to do it themselves and not wait for the solicitors to do it. so you end up being assessed for AML twice as you will be assessed by the EA as well as the solicitors.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81910717#Comment_81910717

also i worry about how secure the data will be treated as i doubt EA have secure systems in place to protect customer data

This would definitely be a worry, especially as there is often young inexperienced staff in the office and a turnover of staff. I can imagine one of them in the pub saying ' and this bloke had £300,000 in savings, and Premium Bonds etc '