When you buy property in the UK, your solicitor or estate agent is legally required to carry out Anti-Money Laundering (AML) checks before handling any large financial transaction.
This isn’t just a box-ticking exercise. It’s a legal duty under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, reinforced by the Sanctions and Anti-Money Laundering Act 2018 and the Proceeds of Crime Act 2002.
Together, these laws ensure that property transactions are free from criminal influence — protecting both you and the wider financial system.
Your solicitor or agent must verify:
Who you are (identity verification)
Where your money is coming from (source of funds)
That your funds were acquired legitimately (source of wealth)
Without these checks, they are legally prohibited from continuing with the transaction.
2. Why Financial Information Is Needed
The AML check involves gathering clear evidence that shows how you obtained the funds being used to buy a property. This could include salary, savings, inheritance, sale of another property, or a gift.
Providing this information ensures your solicitor can:
Confirm the money you are using is legitimate and traceable.
Prevent your transaction from being linked to fraud, corruption, or other criminal activity.
Protect your purchase from delays, investigations, or even cancellation.
💬 In simple terms: the more transparent your financial information, the smoother your purchase will be.
3. Is This Common Practice?
Yes — it’s standard practice across the UK property industry.
The UK property market is one of the most valuable in the world, but also one of the most targeted for financial crime. Criminals attempt to “clean” dirty money through high-value property transactions every year.
That’s why regulators such as the Financial Conduct Authority (FCA) and HM Revenue & Customs (HMRC) require firms to prove the legitimacy of all funds involved.
If your source of funds cannot be proven, your solicitor or agent is legally obligated to pause or decline the transaction until satisfactory evidence is provided.
4. Why This Protects You Too
These checks aren’t only for compliance — they also protect you as a buyer.
✅ Security and peace of mind — By confirming your funds are legitimate, you avoid being unknowingly caught up in fraud or money-laundering investigations.
✅ Transaction transparency — Every step is documented, giving you legal protection if any issues arise later.
✅ Faster completion — When your solicitor receives full, verified documents, the process moves faster and with fewer delays.
✅ Market protection — Widespread AML checks help prevent property prices being distorted by criminal cash, keeping the housing market stable and fair.
In essence, AML checks create trust — between you, your solicitor, and the wider property ecosystem.
7. How Checkboard Makes the Process Easier
Traditional AML checks often required physical bank statements or paperwork — slow, cumbersome, and easy to delay.
Checkboard simplifies this through Open Banking technology, approved and regulated by the Financial Conduct Authority (FCA) — the same regulator overseeing all major UK banks.
Here’s how it benefits you:
🔒 Secure — Your financial data is encrypted and handled with bank-level security standards.
⚡ Fast — Digital connections let you verify and share your information within minutes.
🧾 Flexible — Prefer not to use Open Banking? You can still upload PDFs or photos of your statements securely within the Checkboard app.
📄 Transparent — You always know exactly what data is being shared and for what purpose.
8. How This Fits Into the Bigger Picture
Every time you complete an AML check, you’re contributing to a national and global effort to fight financial crime.
Money laundering isn’t a victimless crime — it fuels serious offences such as drug trafficking, cybercrime, corruption, and even terrorism. By verifying your funds, you’re helping law enforcement agencies identify and stop illicit financial flows.
In 2024, the UK National Crime Agency (NCA) reported over £10 billion in property transactions flagged as suspicious each year — and AML systems prevented many of these from going through.
By cooperating fully with AML requirements, you’re ensuring that:
Your purchase is legitimate.
You’re not inadvertently aiding crime.
You’re part of a transparent and secure property market that protects honest buyers.
In Summary
Providing your financial information is not just a legal requirement — it’s a protection mechanism for you and your investment.
By completing your AML check:
You stay compliant with UK law.
You safeguard your property purchase from fraud and delays.
You support the wider fight against financial crime.
Checkboard makes this process simple, secure, and compliant — giving you peace of mind that your funds, your transaction, and your personal data are protected every step of the way.