How AML and KYC work on UK property purchases, which documents solicitors request, and how international buyers should prepare source-of-funds evidence.
Proving Source of Funds: AML and KYC on UK Property Purchases
You have found a London property and finance is in place. Then your adviser sends a checklist: bank statements, source-of-funds letter, explanations…
That is AML (anti-money laundering) and KYC (know your customer). Both apply to every buyer — not only “high risk” cases.
What Is AML?
Anti-money laundering rules require proof that purchase money is legitimate and traceable. Under the UK Money Laundering Regulations, each transaction must document the buyer’s source of funds.
Who runs checks?
- Your solicitor (conveyancer)
- The estate agent
- Your mortgage broker (if applicable)
Each party may run its own KYC — duplicate requests are normal.
What Is KYC?
Know your customer is AML in practice. Your solicitor must verify who you are and where the money comes from.
1. Identity
- Passport or national ID
- Proof of address (utility bill, bank statement, or official letter — usually within the last three months)
2. Source of funds (SOF)
| Source | Typical evidence | |---|---| | Salary | Payslips; 3–6 months’ bank statements | | Business income | Company accounts; accountant’s letter | | Property sale | Completion statement; transfer proof | | Inheritance | Grant of probate; solicitor or accountant letter | | Investments | Portfolio statement; broker confirmation | | Mortgage | Offer letter; lender approval |
Transfers from abroad: Keep SWIFT confirmations and bank-certified statements in English where possible.
PEP (Politically Exposed Persons)
A PEP is someone who holds or held prominent public office (and close family). PEP status triggers extra documentation — it is standard, not a block, when disclosed early.
EDD (Enhanced Due Diligence)
Solicitors apply enhanced checks when risk is higher, for example:
- Purchase price above £2,000,000
- Funds from higher-risk jurisdictions
- PEP status
- Purchase via SPV or trust
Expect additional bank letters, accountant or lawyer confirmations.
Issues International Buyers Face
1. Bank statement formats
Non-UK banks may not match UK templates. Ask your bank for English statements; notarised copies if requested.
2. “Savings built up over years”
A verbal explanation is not enough. You may need two to three years of account history showing accumulation.
3. Corporate purchases
If buying through an SPV or existing UK company, solicitors need ultimate beneficial owner (UBO) details and company account statements.
Preparation Checklist
- ✅ Valid passport
- ✅ Proof of address (translated if required)
- ✅ 6–12 months’ personal bank statements
- ✅ Source-of-funds narrative with supporting documents
- ✅ SWIFT / transfer confirmations for overseas wires
- ✅ Accountant or solicitor letter for complex income
- ✅ Corporate documents if buying via SPV
Start the pack before you offer — delays here delay exchange.
Need help structuring your purchase and documents?
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