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Money Laundering Regulations advice

(9 Posts)
SlaughteredChicken Thu 09-Jun-16 23:08:37

Hope I can explain this clearly and concisely.

SIL is about to embark on a very large payment plan. No worries there - she has money but it's tied up with no instant access or easy way to get a statement.

What she wants to do is ask MIL to transfer £15k into her bank account and get a statement to the company organising the payment plan to prove she has funds to support her lifestyle. Then she transfers the money back to MIL.

Again there is no issue with money - MIL has it as a safety net and SIL wouldn't try to keep it or anything, but I'm concerned about the Money Laundering regs. We had to prove where our deposit for the house came from. Will MIL have any issues if she agrees to this?

IceMaiden73 Fri 10-Jun-16 10:51:57

I expect they will want to know where the money came from and I suspect MIL will have to say it is a gift and she doesn't want it back

I don't understand why SIL can't get statements to support her income

SlaughteredChicken Fri 10-Jun-16 11:34:36

Thanks. I'm a little dubious about the statement thing myself but I trust SIL to give the money back, she's just not one to think about implications on others. MIL can't lie so won't sign to say anything that isn't true....

BumbleNova Fri 10-Jun-16 11:39:13

Um I am lost as to why there would be any AML issues?

BumbleNova Fri 10-Jun-16 11:40:33

are you thinking about whether they will need a statement from your MIL? saying she has no interest in the funds? it may not be relevant - but I have no idea from the scant info in your post?

CotswoldStrife Fri 10-Jun-16 11:45:39

Difficult to say without knowing what kind of proof the payment plan would need. If it's a mortgage, then they'd be looking at more than one month's bank statement and - as you already know yourself - want to know how the sum was accumulated!

If all they are looking for is proof of the money, why can't she provide a statement from wherever it is held at the moment? Even if it's an investment policy it should have the initial setup and an annual statement?

I suspect there is a bit more to this than you've said confused

SlaughteredChicken Fri 10-Jun-16 12:27:55

Thanks again for taking the time to respond. I don't have all the information from SIL's side and my interest is purely whether MIL will have to sign anything.

She's happy to help out but worries about whether there will be any comeback on her for lending a fairly large amount for a short period of time. If she can just lend the money and then happily receive it back without any requirement for third party involvement (i.e. either bank), she'll go ahead. Any chance of having to sign documents and she'll say no. She's an elderly lady with a mistrust of anyone 'official'.

Sorry I can't give details on the payment plan but it's not a mortgage and it doesnt change the question of whether an inter-family loan of this size would be subject to any scrutiny.

Really appreciate your input - thanks again.

BumbleNova Fri 10-Jun-16 12:50:51

if I'm honest, AML concerns are the least of your worries. she can say no and not have to justify herself.

If your SIL has the money, she needs to get it together and use her own funds. it seems like a run around for no good reason. I think your MIL is rightly wary about this arrangement.

SlaughteredChicken Fri 10-Jun-16 14:59:02

Thanks BumbleNova - I'll tell her to follow her head with this one...

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