Identity and anti-money laundering checks are a legal requirement at several points in a property transaction, and you'll likely go through them more than once. That's not duplication for its own sake. Each regulated firm carries its own legal liability for getting it right, which is why most choose to run their own check rather than take someone else's word for it.
What is an anti-money laundering check?
Anti-money laundering, often shortened to AML, checks are legal verifications carried out by estate agents, conveyancers and mortgage brokers to confirm who you are and that the money involved in your transaction comes from a legitimate source. They're required under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. As a buyer, you'll typically be checked by your estate agent, your conveyancer, and your mortgage lender. As a seller, by your estate agent and your conveyancer.
Why do I have to go through this more than once?
Each regulated firm carries its own legal responsibility for compliance, and that responsibility can't simply be handed off. The regulations do include a reliance provision under Regulation 39 that technically allows one regulated firm to rely on a check another has already done, but only with a formal written agreement in place, and the firm doing the relying stays fully liable if anything turns out to be wrong. It also isn't considered a suitable approach for checking the source of your funds specifically. In practice, this is why most estate agents, conveyancers and lenders each run their own check rather than accepting one carried out elsewhere.
Why does this matter so much for property specifically?
Property transactions involve significant sums of money, which makes them a recognised target for financial crime, and estate agency businesses are directly supervised by HMRC for exactly this reason. These checks protect the integrity of the property market as a whole. Incomplete documentation is one of the more common, and most avoidable, causes of an early stall in a transaction, and being asked for it isn't a reflection on you personally. It's applied universally, to every party, on every transaction.
What actually happens behind the scenes?
Identity checks typically require photographic ID, such as a passport or driving licence, alongside a recent document confirming your address, such as a utility bill or bank statement dated within the last three months. Source-of-funds checks may involve bank statements, mortgage documentation, savings evidence, or paperwork relating to gifts, inheritances or business proceeds. Many firms now use electronic verification tools, which can speed the process up considerably compared with posting or scanning physical documents.
| Have ready | Why |
|---|---|
| Photo ID (passport or driving licence) | Required for every AML check, with no exceptions |
| Proof of address dated within 3 months | Confirms your current address matches your ID |
| Evidence for gifted, inherited, or business-sale funds | Source-of-funds checks can't rely on a simple confirmation letter |
| Time for more than one check | Your agent, conveyancer, and lender each run their own, by law |
Frequently asked questions
- Why do I have to do an anti-money laundering check more than once?
- Because each firm is personally liable for its own checks. Reliance on another firm's check is technically allowed but rarely used, since it requires a written agreement and doesn't remove the relying firm's liability.
- What documents do I need for an AML check?
- Photographic ID and a recent proof of address, plus evidence of where any significant funds came from.
- Can one firm just accept the check another firm already did?
- Only with a formal written agreement under Regulation 39, and the relying firm stays liable if it's wrong. It's rarely used, and never for source-of-funds checks specifically.
- Does an AML check mean I'm under suspicion?
- No. It's applied to every party in every transaction by law, regardless of how well a firm already knows you.
This guide is general information for home movers in England and Wales, not legal advice. Anti-money laundering requirements and individual firms' processes can vary, so confirm exactly what's needed with your own agent, conveyancer, or lender.