Jurisdiction(s):
United Kingdom

Property auctions AML: should seller’s solicitors check source of funds for buyer’s deposit paid to the auctioneer? Risk-based duties, reliance on auctioneer CDD, and SRA expectations

Published on: 06 January 2025

Published by a LexisNexis Practice Compliance expert

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Article summary

See Q&A: Where we act for the seller of a property at auction, are we obliged to carry out AML source of funds checks on the deposit paid by the buyer to the auctioneer before accepting the same from the auctioneer?

There is not a universal obligation to verify the origin of funds for every client or every matter. However, the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, as amended, do require you, where necessary as part of ongoing monitoring, to identify the source of funds used in a transaction. The MLR 2017 further mandate that you confirm the source of funds and the source of wealth when undertaking client due diligence (CDD):

for politically exposed persons, together with family members and known close associates, and
in...

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