Anti-Money Laundering Checks in Conveyancing: What You Need to Know

Simon Nosworthy

AML checks are a routine part of the conveyancing process. They are not a reflection on you or your finances. Understanding what is involved, and what your solicitor needs from you, can help you prepare in advance and avoid unnecessary delays to your transaction.

What are anti-money laundering checks in conveyancing?

Anti-money laundering checks are the identity and financial background checks your solicitor must carry out before they can act for you.

Money laundering is the process by which criminals disguise illegally obtained funds by passing them through legitimate transactions. Property is one of the most common vehicles for this. According to the National Crime Agency, around £10 billion is laundered through the UK regulated sector every year. Transparency International has found that £6.7 billion of questionable funds was invested in UK property between 2016 and 2024.

Because solicitors handle large sums of money in property transactions, they are firmly within the regulated sector. They must carry out checks on every client, in every transaction, regardless of how straightforward it appears.

Why does your solicitor need to carry out AML checks?

The legal basis for AML checks comes from the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, alongside the Proceeds of Crime Act 2002.

Under these rules, solicitors must:

• Verify your identity
• Confirm your address
• Establish where the money for your purchase is coming from

This process is known as customer due diligence (CDD). If a solicitor fails to carry out these checks, they face serious consequences, including fines, loss of their practising licence, and criminal prosecution. No reputable firm will proceed with a transaction until this is complete.

It is also worth knowing that the checks begin at the very start of the transaction, in weeks one and two of the conveyancing timeline. They are not something that comes up at the end. The sooner you provide your documents, the sooner your solicitor can progress your matter.

What documents do you need for AML checks?

Your solicitor will ask for two categories of document: proof of identity and proof of address.

Proof of identity (one of the following):

• Valid passport
• Full UK or EU driving licence (photocard)
• National identity card

Proof of address (one of the following, dated within the last three months):

• Bank or building society statement
• Utility bill (gas, electricity, or water)
• Council tax bill

In addition, your solicitor will ask for source of funds evidence. This means demonstrating where the money you are using for your purchase has come from, not just confirming that it is in your account.

What if your funds come from savings, a gift, or an inheritance?

This is where many buyers run into delays, because different fund sources require different documentation. Your solicitor needs to trace the origin of the funds, not just their current location.

Savings built up over time: Bank statements covering the past three to six months, showing the funds accumulating.

Gift from a parent or family member: A signed gift letter from the donor, confirming the money is a gift and not a loan, together with the donor’s bank statements showing where the funds originated.

Inheritance: A copy of the grant of probate, the estate accounts, and written confirmation of the amount received.

Proceeds from a previous property sale: The completion statement from that sale and bank statements showing receipt of the funds.

Overseas funds: Bank statements from the overseas account and, depending on the country of origin, additional supporting documentation. Transactions involving overseas funds typically take longer and receive closer scrutiny.

If your purchase is funded from more than one source — for example, part savings and part a parental gift — you will need to provide evidence for each element separately. Raising this with your solicitor at the start, rather than waiting to be asked, will save time.

How long do AML checks take?

For most clients, identity checks are completed within a few days. Many firms now use digital verification tools that can confirm your identity within minutes by cross-referencing your documents against secure databases.

Source of funds checks take longer, because they require manual review. How quickly they are resolved depends almost entirely on how quickly you provide the relevant documentation, and whether anything in that documentation requires further explanation.

Delays are most common where:

• Funds originate overseas
• There are large cash deposits without a clear paper trail
• Funds come from complex sources such as business income, legal settlements, or the sale of assets
• Documents are provided piecemeal rather than all at once

How to speed up the process

The most effective step you can take is to gather your documents before you instruct a conveyancing solicitor, rather than waiting to be asked.

Have the following ready to provide on day one:

1. Valid photo ID
2. A proof of address dated within the last three months
3. Bank statements covering the last three to six months
4. Any documents relevant to your source of funds — gift letter, grant of probate, completion statement, or similar

If your funds include a gift, speak to the donor early and ask them to gather their bank statements as well. If you have an unusual or complex source of funds, tell your solicitor at the outset. Early disclosure allows them to advise you on exactly what is needed, rather than going back and forth once the transaction is already under way.

What happens if you cannot pass AML checks?

If a solicitor cannot verify your identity or is not satisfied with the source of funds evidence provided, they are legally required to pause or stop the transaction.

In cases where they suspect the funds may be linked to criminal activity, they must file a Suspicious Activity Report (SAR) with the National Crime Agency. They are not permitted to tell you that they have done this, and the transaction may be delayed while the NCA reviews the matter.

For the vast majority of buyers and sellers, this situation will never arise. The most common issue is simply insufficient documentation, which can be resolved by providing additional paperwork. Your solicitor will tell you what they need.

If you are purchasing or selling on behalf of a company, LLP, or trust, additional checks apply. These include verification of the beneficial owners and those in control of the entity. Your solicitor will advise you on what is required for your specific circumstances.

Do AML checks affect your credit score?

No. AML checks are not credit checks and have no impact on your credit score.

Your solicitor and estate agent are verifying your identity and the origin of your funds. They are not assessing your creditworthiness or making any enquiry with credit reference agencies.

If you are obtaining a mortgage, your lender will carry out a separate credit check. That is a different process entirely, and it is the lender, not your conveyancing solicitor, who runs it.

What changed with the 2025 AML reforms?

The UK government is in the process of reforming how AML supervision works across the legal sector. The key change is the introduction of a single regulatory supervisor for solicitors, replacing the fragmented system where multiple bodies oversaw different parts of the profession.

For property clients, the practical effect is:

• Faster digital identity verification, as more firms adopt consistent technology
• Less duplication of checks between solicitors acting on the same transaction
• More consistent standards and procedures across different firms

The checks themselves remain mandatory. The reforms are focused on making the system more efficient, not on relaxing the standards that protect buyers, sellers, and the integrity of the UK property market.

How we can help

Osbornes Law has a specialist residential conveyancing team based in London. We act for buyers, sellers, and remortgaging clients across England and Wales, and we handle transactions involving complex fund sources, overseas buyers, joint ownership arrangements, new build purchases, shared ownership schemes, and leasehold properties.

We will carry out your AML checks efficiently, explain exactly what documentation we need and why, and keep you informed throughout. If you have an unusual source of funds or any concerns about what you need to provide, speak to us at the outset and we can advise you before the transaction gets under way.

Contact us by calling 020 7485 8811 or filling in our online enquiry form.