Draconian anti money laundering (aml) checks

[Annielou67]

My dd is buying a house with a mortgage and my financial help. The money is coming from 6 different sources.
Firstly the estate agent did their AML checks. They couldn’t accept online printouts, so we had to visit the banks involved. Next the mortgage company needed more and different proofs for AML, we jumped through the hoops.
Then the solicitors - 6 months of statements for both current accounts I am named on. Payslips to show the money going into those accounts. One of the sources was an investment account which only operates by phone and letter and won’t give monthly statements, so we were told we couldn’t use that money.
Anyway, we are now two weeks to exchange and my daughter has been told that all the money is to be transferred to her current account now, so that the AML team can approve the final transfers. She then transfers the funds on completion day. I spoke to the bank today, who said it was ridiculous, that c 60k should not sit in a current account, because it is too accessible. It should go to a savings account and be transferred on the day of completion. The AML team won’t allow the exchange to happen unless the money is in her current account and doesn’t move.
Like any 20 something, her bank details are all over the internet. I’m not at all comfy with this. Has anyone any wise words?

Other than a possible loss of interest, what is the issue with putting it in a current account?

I don’t get it.

i don't get it either. She just needs to make sure transaction limits are set to a low amount.

Why are her bank details all over the internet? If you mean her sort code and account number, there is very little risk to this. If you mean her debit card details (card number, expiry date and 3 digits on the back) then that is incredibly careless if she's put it out on social media for example. If you just mean she uses online banking and online shopping then again there is very little risk to this and I would only be concerned if you think her account is compromised and she should be contacting her bank straight away.

I work in AML (in mortgages) and house purchases require incredibly lengthy source of funds evidence, unfortunately for the customer, however lenders have a lot of regulations as I'm sure you can imagine when someone is asking to borrow a large amount of money. I don't have any experience as to why it must be in her current account instead of a savings account however my advice would be to follow what they are saying as it does not sound unreasonable otherwise the purchase could get delayed or worse, pulled completely.

We have just been going through this and it's a nightmare. If the mortgage company (Barclays in our case) set out their stall accurately in the first place it would be easier but they operate in a drip drip sort of way, you provide what they've asked for and then they want something else, then something else. I was beginning to wonder if they'd want details of our weight and height!
They really need to get up to date with internet banking, it is what most people do and they are more than happy with it when it suits, closing branches and telling people to do their banking via an app but as soon as you wnat a mortgage it all changes.
We've got £100k of our savings in premium bonds so obviously don't want to miss out on next months prizes so would like to not move the money until after the first of the month but probably won't be able to do that even though we're unlikely to complete before the 3rd week of May.

What is even more annoying is that these regulations came into being mainly as a result of the banks bad behaviour, not normal everyday people.

As a seller who list a sale due to the buyer trying to bribe me with cash at the last minute, I’m glad the checks are so robust. I lost £500+ with no chance if being reimbursed

I spoke to the bank today, who said it was ridiculous, that c 60k should not sit in a current account, because it is too accessible really?

Can't you just transfer it anyway or are they saying you can't?

Seems fair enough for AML checks to be done tbh.

Checks seem draconian when you’re on one side of them, but I think it’s right that they are robust. Just do what they ask. They do this all the time.

You’re nearly there just sigh and put it in the current account - it should be safe for 2 weeks if she’d not had problems before.

I think you are right about the drip- drip effect. The estate agent had me move the money so it was easier for them, but a bigger problem for the estate agent.

Thank you for your reply. The bank have said they cannot protect the money in a current account. I asked about transaction limits because my bank would do that.

Can't protect the money from what? Which bank is it that tells their customers they are ridiculous?

I'd ignore the bank and do what I choose with my own money and after it's all sorted move bank asap

The thing that really baffled me is that when I paid my mortgage off I transferred £75k to them. Did anyone have any questions? No. Utterly baffling - I don't understand why you might be going to launder money when you first get a mortgage but not when you pay it off.

Yes. You are right about the necessity of the checks. I accept that. I don’t see why they need to be done by the estate agent, the mortgage broker and the solicitor though. I am interested to know the reasons why you can’t just have the money in your account, you have to prove it is that particular money you are paying with.

The aml team are saying that if we put the money in a savings account , it would involve more aml information and I there is the suggestion that they won’t allow exchange to take place. They are lovely people- it’s just the bureaucracy. I was also a bit stung by not being allowed to use my uk investment account.

You’re not a money launderer so one set of checks would probably do for you. However, if it was left to the EA, say, all number of dodgy purchases by Russian oligarchs would too easily have been made … which they were before the current regulations came in. And they can’t now that you’re not a criminal masquerading as an innocent Mumsnet member. Has to be the same process for everyone.

when I spoke with bank yesterday. They said it was a very bad idea to put the money in the current account as it couldn’t be protected like in a savings account. Her bank details are stored with high street chains online mainly. She hasn’t been hacked as yet.

Because each are individually liable to their own regulator if they fail to do their due diligence with regard to money laundering. They can’t simply say “whoops sorry I thought the solicitor/bank did that”, each stage of the process has a duty of care, although estate agent is usually more about proof of funds and checking it’s legit rather than actual anti money laundering.

Of course you have to prove it’s that particular money as the parties need to know where the funds for the purchase come from.

That’s rubbish, someone is giving you misinformation. Unless your daughter is giving out her card details it’s EXTREMELY difficult (nigh on impossible) to hack an account with just a sort code and account number. A savings account will also have a sort code and account number so is almost as likely to be “hacked”.

Know not now of course.

But on the proving that the money you show them is the money that’s going to be used, that is at the heart of what money laundering is about. If you were a criminal, you’d show them your respectable, genuine UK investment account, then just before exchange you’d pay all the ill gotten cash from your drug running and gun sales into your current account and use that to buy the property. Then when you come to sell it will all be nice and clean and smelling of roses.

So the bank said that because she stored her details on shopping sites her bank account isn't safe? Still intrigued as to which bank this is

Thank you. I’m not knowledgeable about these things. This seems to be the general consensus so shall just stop worrying.