Why does my solicitor need my bank details?

Asked by: Prof. Skye Leffler V  |  Last update: September 16, 2022
Score: 4.1/5 (63 votes)

Since the 2002 Proceeds of Crime Act came into force, solicitors have been required to carry out ever more stringent checks on their clients, and where their client's funding comes from. The reason for this is to verify, as far as solicitors can reasonably do so, that the funds are not the proceeds of crime.

Why do we ask for source of funds?

Source of funds and source of wealth are crucial to the fight against money laundering and terrorism financing since both can be good indicators that customers are involved in criminal activity.

What checks do solicitors do?

The solicitor is also in charge of checking your mortgage conditions, ensuring you have the funds for a deposit and that you have the necessary buildings insurance in place before the exchange of contracts.

What is acceptable as proof of funds?

Proof of Funds usually comes in the form of a bank, security or custody statement, and can be procured from your bank or financial institution that holds your money. Bank statements are the most common document to use as POF and can typically be found online or at a bank branch.

How do I prove a source of funds UK?

A copy of your receipt proving your winnings and a copy of your bank statement showing the money being received. A copy of your letter confirming your compensation settlement from a Solicitor and/or Court and a copy of your bank statement showing the money being received from a third party/Court/Solicitor.

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27 related questions found

Do solicitors have to check source of deposit?

A solicitor cannot by law proceed with your purchase without knowing the source of your funds. This is to limit the potential for fraud, protecting the solicitor, the legal sector and most importantly, the buyer.

Do solicitors need to see bank statements?

Current/Savings Account

If the transaction is to be funded from a savings account or a current account, solicitors will need the original bank statement showing the funds accumulated in the account. It is vital that the bank statements show the name of the bank, the clients name and their address.

What counts as proof of bank account?

A bank statement, security statement, or custody statement usually qualify as proof of funds. Proof of funds is typically required for a large transaction, such as the purchase of a house.

How do you show proof of deposit?

Some lenders may have additional requirements for proof of deposit. Some may request copies of bank statements or a letter from the person who provided any gift money that has been deposited into the account.

How do you prove sources of funds?

Supporting documents and proof
  1. bank statements.
  2. recently filed business accounts, or.
  3. documents confirming the source, such as: sale of a house. sale of shares. receipt of a personal injuries award. a bequest under an estate. a win from gambling activities.

Why do solicitors need to see bank statements when buying a house?

You will need to show your mortgage lender proof of funds usually at the beginning of the process. This shows them that you can afford to buy the property so they can then lend you the mortgage amount. Usually, a bank statement and payslips will be enough evidence.

How do I deposit money into my solicitor?

Safest Way To Transfer House Deposit To Solicitor for a Property Purchase
  1. Make sure your house deposit money is in an easy access account.
  2. Get the right bank account details for your solicitor.
  3. Ask the solicitor to monitor for your deposit bank transfer.

How often should I chase my solicitor?

How often should I chase my solicitor? There's no right or wrong answer to this and it's mainly down to how you feel. There's nothing stopping you from checking in with your solicitor everyday if that's what you feel you want to do.

Why do solicitors need 3 months bank statements?

The reason for this is to verify, as far as solicitors can reasonably do so, that the funds are not the proceeds of crime.

What do solicitors need for a gifted deposit?

What is a Gifted deposit declaration? Your solicitor will require a letter from you confirming that the money you are providing is a gift and that you have no rights over the property. A signed letter to your child should suffice and a copy of this should be supplied to their conveyancing solicitor.

Do solicitors accept printed bank statements?

An increasing trend is for people to volunteer up photocopies, or a print-out of bank statements, or even email them to conveyancers. Sometimes with the commentary that 'we bank/our utilities are all online, so we can only print off statements/bills'. However, none of that is acceptable, this is incase of forgery.

What counts as a gifted deposit?

A gifted deposit is when a family member gives a homebuyer a lump sum of money towards their deposit or gives them the deposit in its entirety. This transaction is classed as a gift, NOT A LOAN. Therefore, there is no legal requirement for the homebuyer to repay the donor whatsoever.

Can a bank ask where you got money UK?

The short answer to this question is: Yes, a bank can ask you where you got your money from. This area of financial services is known as anti-money laundering, and is a requirement for all financial services companies, not just banks.

Is a bank statement Proof of account?

Any one of the following valid documents reflecting your name and physical residential address will be sufficient as proof of residence: Utility bill, e.g. municipal water and lights account or property managing agent statement. Bank statement.

Can you use a bank statement as proof of identity?

*The date on these documents should be within the last three months and they must contain the name and address of the applicant. Photocopies and documents downloaded from the internet (e.g. bank statements) will not be accepted.

What are bank supporting documents?

Bank account statement or passbook of the bank. Ration card. Aadhaar card. A letter stamped/signed/recognised from a gazetted officer or public authority to verify the address details of the applicant.

What do solicitors look at in proof of funds?

The proof in question is usually either a bank statement showing the amount of the full purchase price (in the case of cash buyers), or a statement showing your deposit amount plus a mortgage in principle from your lender for those using a mortgage.

How do solicitors do an identity check?

Your solicitor will need proof of your identity and your address. In most cases you can prove your identity by providing your current passport or photographic driving licence. To prove your address, you will need to provide a recent (ie not more than three months old) utility bill, bank statement or council tax bill.

Can you sue solicitors for being slow?

Legal firms can be sued if they don't achieve a completion date that they've committed to, especially if the delay is because of their own error.

How long should a solicitor take to reply?

After you have sent your letter to the solicitor, you wait at least 8 weeks to give the solicitor time to respond.