Help with deposit - Bank of Mum & Dad v Money Laundering

davidmcn · 9 August 2018 at 7:56PM

steampowered wrote: »

I'm not an AML expert.

But far enough back to demonstrate that the money hasn't come from criminal activities, I suppose.

There's no standard requirement but typically solicitors will want to look back three months - if you've had the money that long then it's probably yours, rather than some peculiarly slow money-laundering conspiracy.

JosephK · 10 August 2018 at 7:43PM

Thanks all for assorted replies & opinions - interesting.

Not objecting to AML regs so much as way checks are carried out. Would be more understandable if focused on amounts of hundreds or even tens of thousands of pounds or from questionable overseas sources and asked a few less odd questions, eg. Will you confirm the gift is not repayable?- By definition, it's not repayable. If it was repayable, it wouldn't be a gift.

As with many security checks, what should be a useful preventative becomes a box-ticking exercise.

Anyway, as it's for their benefit and not mine, I'll be jumping through the hoops - it's what the Bank of Mum & Dad do.:)

casper_g · 10 August 2018 at 8:51PM

AIUI the question about confirming the gift is not repayable is nothing to do with money laundering anyway. It's something the solicitor is required to ascertain to protect the interests of the mortgage lender, for whom he/she is also acting.

MysteryMe · 10 August 2018 at 9:56PM

There are heavy penalties for financial institutions if they fail to adhere to AML regulations so their priority is to ensure compliance.

The trouble is some people take these kinds of checks personally and think it is questioning their integrity when it's not, it's just the law and applies to everyone in the same boat.

davidmcn · 10 August 2018 at 10:55PM

JosephK wrote: »

Would be more understandable if focused on amounts of hundreds or even tens of thousands of pounds or from questionable overseas sources and asked a few less odd questions, eg. Will you confirm the gift is not repayable?- By definition, it's not repayable. If it was repayable, it wouldn't be a gift.

The gifting point is nothing to do with anti-money-laundering checks, it's part of the lender's affordability criteria - they don't want the borrower to be burdened with undeclared loan repayments.

BankCustomer · 11 August 2018 at 7:48PM

I had to sign to confirm the money was a gift not a loan as the lenders want to be the only one lending money whch is fine as it was a gift. I wasn't asked about the source of the funds - it was just savings including inheritance from my own parents (after inheritance tax had been paid ) and next tranche from pension being cashed in but may be things have changed and now they do ask where did the parent acquire the money.

Thrugelmir · 11 August 2018 at 8:20PM

Often gets overlooked that Solicitors themselves are liable in certain instances to claims. Resulting in them paying higher premiums towards the Solicitors Compensention Fund and their own Professional Indemnity Insurance. May often be a case of once bitten twice shy.

Help with deposit - Bank of Mum & Dad v Money Laundering

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