Source of Funds and Wealth
Information we need about your source of funds and source of wealth when you’re buying a residential property.
It’s a legal requirement that your advisor gets adequate proof of the source of the money you’re putting into your property purchase or transfer.
We have to put strict procedures in place as millions of pounds pass between conveyancing solicitors on a daily basis, which makes the legal sector a huge target for criminals and fraudsters.
Why do I need to provide Source of Funds and Wealth information?
All Scottish law firms have legal requirements to complete anti-money laundering checks and are regulated by the Law Society of Scotland. In a property purchase or transfer this doesn’t just mean getting your ID documents (though that is very important too).
It also means checking the source of the money you’re putting into the transaction. We do need to do this for every purchase and transfer transaction which we arrange for our clients, even our most wealthy ones. This means asking for bank statements or other proof of where the money has come from before we can settle the transaction.
It can feel like we’re asking you a lot of questions, but unfortunately, this is the law. We could face criminal prosecution if we don’t comply.
We need to verify your source of funds and wealth BEFORE we can accept money from you. Until we’ve satisfied ourselves of this, we can’t proceed with your transaction.
You’ll be asked to provide documentary proof of: (1) where your money originated from and (2) where your money is now, i.e. where it will be transferred from. We’ll treat all of your information confidentially and with the highest levels of care (as explained in our Privacy Notice).
The categories below detail what your advisor may ask you for copies of, depending on the type(s) of funding that you’re using. It’s not an exhaustive list and we may ask you to provide addition proof or information if required.
- Your bank statements for at least the last 3 months showing an accumulation of funds in your bank account (for each bank account if you’re using money from more than one). Please don’t black out or hide any transactions on your statement, we do need to see the full statement.
- Details of your current occupation and employment or pre-retirement occupation and employment if you are retired.
- If your bank statements show large payments transferred in from other accounts then please provide your bank statements for those accounts too (at least 3 months). We need this so we can see where those funds have come from.
Sale of another property
- The completion statement from your solicitor and your bank statement showing the sale proceeds coming in. If Blackadders LLP were your solicitor for the sale, we won’t need this proof, just the property address; and
- Your bank statements showing the funds staying in your account(s) for the full period from when you received the sale proceeds until now.
Mortgage, Commercial loan or Help to Buy Equity Loan
- The Mortgage or Loan documentation.
- A letter from the person making the gift; and
- Information about the source of funds and wealth of the person making the gift, including their occupation and their connection to you; and
- Source of funds and wealth documents from the person making the gift, such as bank statements if the money is coming from their savings; and
- Two forms of ID (photo and address) for the person making the gift; and
- Bank statements showing the gift funds going from the gifter to you (if applicable).
- Proof of the inheritance, for example the Will and a letter from the executor or solicitor dealing with the estate stating how much you were being paid; and
- Your bank statement showing the inheritance money coming in.
Sales of shares, investments or share dividend income
- Letter from the Company invested in or Investment Portfolio Manager or share certificate, share release schedule or dividend certificate; and
- Your bank statement showing the share or dividend money coming in.
Earnings from a business, such as a company you own
- Details of the name of the business, what the business does and its connection to you; and
- Official business accounts for the last 3 years showing sufficient available funds or assets or a letter from the business’s accountant confirming net profit for the last 3 years, showing sufficient available funds; and
- A business account bank statement for at least the last 3 months; and
- Your bank statement showing the business funds coming in (if appliable).
- The loan agreement or confirmation of loan terms; and
- Your bank statement showing the money being received from the lender(s); and
- At least 3 months bank statements for all private lenders; and
- Two forms of ID (photo and address) for all private lenders.
- Your pension release document; and
- Your bank statement showing the money being received from the pension company.
One off bonus / Redundancy payment
- Your payslip or letter from your employer confirming your one-off payment; and
- Your bank statement showing the money being received from your employer.
Compensation award / court settlement
- Your letter confirming your compensation settlement from a solicitor or court; and
- Your bank statement showing the money coming in.
- Your receipt proving your winnings; and
- Your bank statement showing the money coming in.