Buying UK Property From Abroad: Proof of Funds, Source of Wealth and Anti-Money-Laundering Checks

The Short Answer

UK conveyancers are required to carry out anti-money-laundering (AML) checks on their clients. In practice this means verifying your identity and understanding where the money for the purchase comes from. Overseas buyers often face extra scrutiny because documents come from other countries, in other languages and from other banks. Starting early is the best way to protect your timetable.

Three Different Things People Mix Up

• Proof of identity. Documents that show who you are, such as a passport, and often proof of your address.
• Proof of funds. Evidence that you have the money available, such as recent bank statements.
• Source of funds and source of wealth. Evidence of where the money came from. For example, salary savings, the sale of another property, a business sale, an inheritance or a gift. Source of wealth is the wider story of how you built your assets.

What Documents Typically Help

Your conveyancer will tell you what they need, and firms differ. Examples of documents often requested include:

• A valid passport and recent proof of address.
• Recent bank statements showing the money to be used, and statements showing how it built up.
• A sale completion statement if the funds come from selling a property.
• Payslips, tax returns or company accounts for earnings or business income.
• A signed gift letter and the donor's identity and source information where a family member is giving money.
• Certified translations where documents are not in English. Ask your conveyancer what certification they accept.

Why Transfers Cause Delays

The most common cause of delay is a mismatch between the money you show and the money that arrives. To keep things smooth:

• Pay from an account in your own name wherever possible. Third-party payments raise questions.
• Do not move money between accounts at the last minute without keeping the paper trail.
• Ask your conveyancer in advance which bank details to use and how to confirm them, because fraudsters target property payments.
• Allow for currency conversion time and for bank limits on international transfers.
• Keep your own records of each transfer, with dates and amounts.

Beware of Payment Fraud

Fraudsters send fake emails with changed bank details close to completion. Always confirm bank details by telephone using a number from your conveyancer's official website or your original engagement letter, never a number in a new email. Do not send money until you have done so.

Where This Fits in the Buying Process

AML checks start when you instruct a conveyancer, which is usually just after your offer is accepted. Ask for their checklist at the start rather than waiting to be chased. Our guide to conveyancing timelines for overseas buyers shows where this sits, and the full cost of buying from abroad covers the budget side, including the Stamp Duty surcharge for non-UK residents covered in stamp duty for overseas buyers.

A Short Preparation Checklist

• Choose a conveyancer and ask for their AML checklist.
• Gather identity and address documents.
• Collect bank statements and evidence of where the funds came from.
• Arrange translations if needed.
• Confirm the payment route and check bank details by telephone.
• Allow extra time for international transfers.

Talk to Banke UK

We cannot do your legal checks for you, and we do not act as your conveyancer. We can help you understand the steps, compare properties and prepare for the questions you will be asked. Contact the Banke UK team to discuss your plans.

Sources and disclaimer: GOV.UK and the Law Society and Solicitors Regulation Authority guidance on anti-money-laundering checks for conveyancers; HMRC for Stamp Duty Land Tax. This is general information, not legal, tax or financial advice. Rules, fees and procedures change, so confirm the current position with the relevant authority or a qualified professional before you commit money.