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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Paperwork Is Not a Shield: Why AML Compliance Must Be Evidenced on Every File
The Solicitors Regulation Authority fined Whiteheads Solicitors £2,584 plus costs for failures in compliance with anti-money laundering regulations. Key issues included inadequate client risk assessments and poor scrutiny of fund sources. This case underscores the necessity for law firms to ensure rigorous application of AML policies to avoid penalties.
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Five SRA AML Fines in One Month: What the December 2025 Decisions Reveal
Five SRA AML decisions resulted in combined fines of £47,933. Their recurring findings provide practical lessons about FWRAs, AML policies, CMRAs and source of funds.