Why do I need to show my solicitor my source of funds?

Are you thinking of buying a property?

Your solicitor will need to see your evidence of your source of funds. Money is often considered a personal subject and not something we would necessarily discuss with others, so why does your solicitor need to see it? Why is simply just having the correct amount of savings in a bank account for a deposit not enough proof?

What are Source of funds?

Source of funds refers to where a person’s money has come from. Your solicitor needs to know not only that you have sufficient funds and where the money is being transferred from but also how it was earned— such as through a job, selling a house, or receiving an inheritance. Source of funds evidence is having a paper trail that shows how the money in your account was built up.

Some more examples of sources of funds are:

• Personal savings
• Pension payouts
• Selling property
• Selling shares or receiving dividends
• Gambling winnings
• Inheritances and gifts
• Legal compensation

Why does my solicitor need to see them?

Providing your source of funds is a crucial part of the checks that your solicitor, or conveyancer must carry out and is required from all clients as part of our obligations under the Money Laundering Regulations. The main reason is to stop criminals from using law firms to launder money. As soon as illegal funds enter a law firms bank account, these will be turned into legitimate funds, which is why money launderer’s often target law firms and why we must take identifying a client’s source of funds seriously. We promise we are not being “nosey” or trying to be a nuisance.

How can my source of funds be provided?

Source of funds can be provided in a range of different ways depending on what source(s) you are intending to use. Your solicitor will assist you with what is required to satisfy source of funds requirements. At Attwells, we will provide you with a guidance booklet to help you with this.

For example, if you are intending to use your savings to purchase your property, your solicitor will likely need to see at least three months of bank statements showing a regular income (eg: wages/salary) which is being regularly paid into a savings account. Another common example is receiving a gift from a relative. In this case, your solicitor will likely need to undertake an ID check on the gift donor, and they will require evidence of where the donor got their funds from to gift to you.

What does my solicitor do with my source of funds?

Your solicitor will analyse the source of funds you have provided to see if they are satisfactory and fit within our guidelines. They may request additional information depending on your individual circumstances and what the source of your funds are. The more information that you can provide about your source of funds, the easier the process will be for you and your solicitor.

If you have any further questions about the process for purchasing a property and what you will need to do to assist your solicitor please contact Attwells today on 01473 229200. We will be happy to assist you.

Our blogs and articles are correct at the time of writing.

These have been created for marketing purposes only and should not be considered as legal advice.