CapEx Properties


AML Checks Are Extremely Important!

When you’re buying a property in the UK, you may be surprised to discover that you have to prove you aren’t laundering money when you buy. Yet, these checks are extremely important, and they are a key part of the purchasing process.

Here, the CapEx Properties team explains what these checks involve and which documentation you’ll need to supply to the authorities.

Money Laundering Checks – What Are They?

Money laundering is a process during which money that has been obtained in an illegal manner is passed through a legitimate financial channel to “clean” it. There are many different channels that criminals use for this purpose, from legal businesses that act as fronts, to loan repayment schemes, and, of course, property purchases. In order to combat this criminal activity, all property transactions are subjected to AML (anti-money laundering) checks before they can complete.

Which Documents Must I Produce for AML Checks?

There are three different categories of documents that you’ll need to produce to satisfy the AML checks:

  • Proof of your identity
  • Proof of funds
  • Source of funds

Let’s take a closer look at all three of these separately.

Identity Documents

The authorities need to know that you aren’t pretending to be somebody else, so you need to provide documents that prove your identity such as a passport, photo driving license, recent bank statement, mortgage statement, tax bill, tax notification, utility bill, your benefits or pension book, a recent local authority tenancy agreement or a biometric residence permit.

Proof Of Funds

You may need to supply proof of funds several times, but for AML purposes, you will need to supply evidence after you’ve made your offer on your chosen property. You can supply the following as proof:

  • A lender’s mortgage in principle agreement
  • A bank statement that shows your deposit
  • A bank statement that shows the entire asking price if you’re a cash buyer
  • A letter of proof for a gifted deposit
  • Evidence of your property sale if you’re using this money to fund your purchase

Source Of Funds

The source of your funds isn’t quite the same thing as proof of having the money. It proves where the money came from and not just that you have it. The proof you’ll need will depend on the source of your money e.g. your bank statement or a letter from a family member about their gift of a deposit.

What Happens If I’m Funding My Purchase With Money From Overseas?

If you’ll be funding your purchase with money from overseas, you may find that you fall foul of today’s money laundering laws. Gifts, funds, and deposits that come unto the UK from certain countries may not pass the AML checks, so you should always run your source past your conveyancing team before committing to the purpose. If you’re using funds from a high-risk country, or even from somebody with links to high-risk countries, your funds may be declined.

To learn more, get in touch with our team at +44 20 3989 8010. We can give you our expert advice and help you find the documentation you need to ensure your house purchase in the UK runs smoothly.

How to invest in property in the UK

So, is the UK good for property investment? Yes, resoundingly so. Investing in UK property can be extremely attractive to foreign investors. Rental demand in the UK is inordinately high and outstrips supply year on year, as the country cannot build the required number of new homes that it needs, to service the population. As a result, historical capital appreciation has been as much as double digits, year after year, so the right investment in the right area, certainly can produce a healthy, long term capital gain. 

A market as fast and competitive as this one can be difficult to navigate especially as a foreigner buying property in the UK. So, whether you are relocating to London or planning to invest in a buy to let property, CapEx Properties is top of its class when it comes to assisting you in making a sound investment with good solid returns. 

If you are interested in procuring a property investment in the UK, you can contact us by completing our contact form. An expert broker will get back to you within 24 hours to talk about your needs and specifications. CapEx Properties offers a tailor-made experience to avoid the worry and stress of navigating the UK property market and endeavours to find you the best property investment in the UK. CapEx Properties has helped countless foreign clients find their ideal property and we pledge to do the same for you. 

About Us

CapEx Properties is an independently owned property search/buying agency, assisting international clients with the search & acquisition of UK properties.

CapEx Investment Properties Limited trading as Capex Properties is a company registered in England and Wales. Registration number 13324508.
Registered address: 128 City Road, London, EC1V 2NX, UK.