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Gifted Deposit - Onerous checking - how necessary?

2

Comments

  • AdrianC wrote: »
    Yeh, why on earth do solicitors need to do any kind of money-laundering checks on that gift from Uncle Pablo in Medellin, Uncle Vito in Palermo, or Uncle Vladimir in Moscow, anyway?

    Well yes, but as the OP was about a Mortgage Broker collecting data (on a statement) that had no relevance to the gift, involving money that had sat in a British Bank for over 8 months so plenty of time for money-laundering checks there and the gift was from a British Father rather than foreign uncle - is your comment useful, helpful or worthwhile?

    Thank you to the others for their experiences.
  • AdrianC
    AdrianC Posts: 42,189
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    If it's sat in a UK bank for 8 months, then it's probably legit. Which is why they need to see the bank statements which the kind donor is reluctant to provide.
  • No - it sat in my daughters bank for 8 months - her statements prove that which she supplied - October to July. And it got there from the current account of a major british bank - the sort codes show that.

    However it is good to know that 8 months is reasonable evidence for you that it is legit - thank you for that
  • JuicyJesus
    JuicyJesus Posts: 3,829
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    sal_III wrote: »
    If the deposit monies are coming from the UK bank account this should be a sufficient reason to consider them "clean"

    That doesn't make any sense. In your reading of things, no money that has ever been in a UK bank account could possibly be laundered.

    You know what placement, layering and integration is, right?
    urs sinserly,
    ~~joosy jeezus~~
  • kingstreet
    kingstreet Posts: 38,690
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    JuicyJesus wrote: »
    You know what placement, layering and integration is, right?
    Quite.

    The whole point is that every link in the chain of a financial transaction can/should add to the audit trail/evidence should a future money laundering case be investigated.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • AnotherJoe
    AnotherJoe Posts: 19,622
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    kingstreet wrote: »
    Quite.

    The whole point is that every link in the chain of a financial transaction can/should add to the audit trail/evidence should a future money laundering case be investigated.


    Right but at what point do they stop \'



    The OP put the money into his account from a share transaction.

    How does he prove where the money to buy the shares came from, etc.


    As another poster said its stupid **** covering that doesnt actually stop any "real" money laundering but its easier to go after the little people than actually do soemthing about overseas accounts etc. What happens when mr abromovitch buys a penthouse in Chelsea for £20M. Anyone think he has to show his bank account details?


    I guess the answer is, for anyone contemplating this in the future as its too late for the OP, xfer the money via a bank account you dont use for your main banking, just for incidental transactions.
  • JuicyJesus
    JuicyJesus Posts: 3,829
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    AnotherJoe wrote: »
    Right but at what point do they stop \'



    The OP put the money into his account from a share transaction.

    How does he prove where the money to buy the shares came from, etc.

    Who's said he had to?

    As another poster said its stupid **** covering that doesnt actually stop any "real" money laundering but its easier to go after the little people than actually do soemthing about overseas accounts etc. What happens when mr abromovitch buys a penthouse in Chelsea for £20M. Anyone think he has to show his bank account details?

    Yes.
    I guess the answer is, for anyone contemplating this in the future as its too late for the OP, xfer the money via a bank account you dont use for your main banking, just for incidental transactions.

    I mean yeah suddenly running huge sums of money through an account that isn't used for anything doesn't look dodgy or out of character at all and will definitely avoid scrutiny.
    urs sinserly,
    ~~joosy jeezus~~
  • In this case, AnotherJoe's suggestion it would probably have been acceptable as it would demonstrate the link through that account between the money going in from the share sale (a recognised British broker) and out to my daughter. That is all he claims to want to be able to do.
    All the rest of the information on the main account statement is apparently of no interest to him - but if his security is not as good as he thinks then it could be to others. But he will not agree to it being redacted.
  • AnotherJoe
    AnotherJoe Posts: 19,622
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    JuicyJesus wrote: »
    I mean yeah suddenly running huge sums of money through an account that isn't used for anything doesn't look dodgy or out of character at all and will definitely avoid scrutiny.

    It will avoid scrutiny of unrelated transactions that are no business of the person checking.

    They aren't meant to be vetting the whole account, just the transfer. So there is no scrutiny needed or done other than to check money went from father to daughter.
  • kingstreet
    kingstreet Posts: 38,690
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    AnotherJoe wrote: »
    Right but at what point do they stop \'



    The OP put the money into his account from a share transaction.

    How does he prove where the money to buy the shares came from, etc.


    As another poster said its stupid **** covering that doesnt actually stop any "real" money laundering but its easier to go after the little people than actually do soemthing about overseas accounts etc. What happens when mr abromovitch buys a penthouse in Chelsea for £20M. Anyone think he has to show his bank account details?


    I guess the answer is, for anyone contemplating this in the future as its too late for the OP, xfer the money via a bank account you dont use for your main banking, just for incidental transactions.
    As already mentioned earlier, donor bank statement for funds leaving, recipient bank statement for funds arriving and possibly donor ID.

    Unfortunately, how we feel about this and large-scale/industrial money laundering is irrelevant as we're stuck with adherence to rules we design ourselves to meet the Act's requirements.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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