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  • FIRST POST
    • JosephK
    • By JosephK 9th Aug 18, 12:28 PM
    • 42Posts
    • 23Thanks
    JosephK
    Help with deposit - Bank of Mum & Dad v Money Laundering
    • #1
    • 9th Aug 18, 12:28 PM
    Help with deposit - Bank of Mum & Dad v Money Laundering 9th Aug 18 at 12:28 PM
    Son & daughter-in-law buying 1st house and, as Bank of Mum & Dad do, we're giving some money towards deposit (not a big amount in this instance). Nothing different to what we've done before for our other son and for uni and weddings.

    However, on this occasion, we seem to be having to jump through hoops proving who we are, whether we have the money, where it came from, etc. What is the point, after all if the money was the proceeds of a bank robbery, I'm hardly going to say that on some paperwork I fill in.

    Maybe this is just a vent, but if I choose to spend my money how I choose so long as it's not illegal, why the faff - never had it before.
Page 2
    • steampowered
    • By steampowered 9th Aug 18, 8:51 PM
    • 2,948 Posts
    • 2,927 Thanks
    steampowered
    How far back do the checks on money source have to go?
    Originally posted by getmore4less
    I'm not an AML expert.

    But far enough back to demonstrate that the money hasn't come from criminal activities, I suppose.
    • davidmcn
    • By davidmcn 9th Aug 18, 8:56 PM
    • 9,291 Posts
    • 9,903 Thanks
    davidmcn
    I'm not an AML expert.

    But far enough back to demonstrate that the money hasn't come from criminal activities, I suppose.
    Originally posted by steampowered
    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
    • By JosephK 10th Aug 18, 8:43 PM
    • 42 Posts
    • 23 Thanks
    JosephK
    Help with deposit - Bank of Mum & Dad v Money Laundering
    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
    • By casper_g 10th Aug 18, 9:51 PM
    • 1,085 Posts
    • 930 Thanks
    casper_g
    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
    • By MysteryMe 10th Aug 18, 10:56 PM
    • 2,028 Posts
    • 2,459 Thanks
    MysteryMe
    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
    • By davidmcn 10th Aug 18, 11:55 PM
    • 9,291 Posts
    • 9,903 Thanks
    davidmcn
    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.
    Originally posted by JosephK
    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
    • By BankCustomer 11th Aug 18, 8:48 PM
    • 4 Posts
    • 1 Thanks
    BankCustomer
    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
    • By Thrugelmir 11th Aug 18, 9:20 PM
    • 61,287 Posts
    • 54,529 Thanks
    Thrugelmir
    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.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
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