Source of Funds Checks: Evidence and Scrutiny for Law Firms
Collecting bank statements is one part of a source-of-funds investigation. The file should also explain the proposed funding, assess the supporting evidence and record how material inconsistencies or changes were addressed.
These articles examine source-of-funds scrutiny in conveyancing, including gifts, third-party contributions, changed payment arrangements and the quality of internal file reviews.
Do your files explain where the money came from?
An independent AML audit can examine whether the funding explanation, evidence and recorded decisions support one another, and whether changes were recognised at the appropriate stage.
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Beyond the Bank Balance: Mastering the Art of Source of Funds
During most Independent AML Audits that I conduct, proof of funds and source of funds are often treated as the same thing. In reality, they are very different. Confusing the two is a common mistake that can expose firms to unnecessary regulatory scrutiny. As professional standards evolve, the CLC and SRA are making it increasingly…
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Beyond the Bank Statement: Navigating the “Originating Funds” Trap in the UKF Handbook
In the UK mortgage industry, conveyancers must navigate complex requirements regarding the “origin” of funds, as outlined in the UK Finance Lenders’ Handbook. Lenders increasingly demand detailed histories of financial gifts, beyond simple bank statements, complicating the home-buying process. Buyers should be prepared to document the full financial journey of their deposits.