When you are buying property in Scotland one of the first questions we must ask you is where the funds you are using for your purchase came from.
All Scottish law firms need to complete strict anti-money laundering checks against their clients and satisfy rigorous rules and regulations laid down by the Law Society of Scotland.
This applies to cash buyers and those with a mortgage as we will need to see where your deposit funds came from.
The evidence required will depend on your individual circumstances. If your money is coming from your savings including salary, pension ISA or investments, your solicitor will need to see those payments being made into your bank account. If you have moved the funds that are being used towards the purchase price between bank accounts, perhaps from a savings account to a current account, we will need to see bank statements for all such accounts. In some cases, we may have to ask you more questions and obtain more evidence.
If you have received, or will be receiving, gifted funds (eg from a family member) your gifter will also be required to provide identification documentation and the same proof of funds to show where their money came from before gifting it to you.
Please do not be offended that we are asking you to prove the source of your funds. The rules are put in place to prevent criminals and terrorists hiding and disguising their funds to make them look legitimate and apply to all funds which we receive from clients even when we know the clients well.
Sourcing funds is a cumbersome and time consuming task but you can help us to make the process easier and avoid delays later on in your transaction by giving us all this information at the start, especially if your funds originated abroad or were gifted to you by a third party.
At Clark Boyle we use a Law Society of Scotland recommended encrypted digital identity tool called Amiqus, which will allow you to submit your information and documentation safely and securely online through the encrypted system, making our checking process more secure. As part of that process, they use a secure technology called “Open Banking”. Information on Amiqus and Open Banking can be found using the following links:
