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corevalue

Money Laundering Bllx

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My son is trying yo buy his first house. He has a 50% deposit, spread across a number of bank accounts, and some share options which he sold. He has become enmeshed in a nightmare bureaucracy worthy of Kafka. To satisfy current money-laundering legislation, he has to produce at east 10 years of signed bank statements, to demonstrate that the money is really his. As he moved money around banks in the previous years to get the best interest rates, this is no small task. He has piles of statements inches thick now; who the hell is reading this? He always worked PAYE - surely his tax records should suffice, ot at the very least, shouldn't the banks check when you put large amounts IN?

By contrast, if he'd gone in with a minimal amount of deposit, and taken one of the vaunted help schemes for FTB'ers, he wouldn't have to do this.

Do the government realise what a huge, time consuming load of carp this is?

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My son is trying yo buy his first house. He has a 50% deposit, spread across a number of bank accounts, and some share options which he sold. He has become enmeshed in a nightmare bureaucracy worthy of Kafka. To satisfy current money-laundering legislation, he has to produce at east 10 years of signed bank statements, to demonstrate that the money is really his. As he moved money around banks in the previous years to get the best interest rates, this is no small task. He has piles of statements inches thick now; who the hell is reading this? He always worked PAYE - surely his tax records should suffice, ot at the very least, shouldn't the banks check when you put large amounts IN?

By contrast, if he'd gone in with a minimal amount of deposit, and taken one of the vaunted help schemes for FTB'ers, he wouldn't have to do this.

Do the government realise what a huge, time consuming load of carp this is?

That's balls. It's obviously down to front line staff misunderstanding their own procedures and then refusing to back down because to do so would result in loss of face. Put a customer complaint in via the Bank first, making it clear he will escalate to the ombudsman. Ask to speak to someone in their AML compliance department - once they give the OK, front line jumps into line.

ten years worth of bank statements. hah. right. The legislation only requires banks to keep 5 / 7 years records themselves :P

Edited by wherebee

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My son is trying yo buy his first house. He has a 50% deposit, spread across a number of bank accounts, and some share options which he sold. He has become enmeshed in a nightmare bureaucracy worthy of Kafka. To satisfy current money-laundering legislation, he has to produce at east 10 years of signed bank statements, to demonstrate that the money is really his. As he moved money around banks in the previous years to get the best interest rates, this is no small task. He has piles of statements inches thick now; who the hell is reading this? He always worked PAYE - surely his tax records should suffice, ot at the very least, shouldn't the banks check when you put large amounts IN?

By contrast, if he'd gone in with a minimal amount of deposit, and taken one of the vaunted help schemes for FTB'ers, he wouldn't have to do this.

Do the government realise what a huge, time consuming load of carp this is?

Had similar a year back when I bought but they only insisted on 2 years bank accounts. They accepted print outs from online banking so I was able to print off enough to satisfy them. I got the impression that they just looked at the pile of paper and okayed it as I called the solicitors shortly afterwards sand they said all was fine.

10 years seems excessive and should be challenged IMO.

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This sort of thing is very worrying and I could fall foul of it if I decide to buy as I will be paying all cash.

Who is demanding to see these bank statements?

What do bank statements prove anyway? They don't show where the money has come from.

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This sort of thing is very worrying and I could fall foul of it if I decide to buy as I will be paying all cash.

Not in £ Notes I hope??

BTW its the solicitors who demand to see this. They want a paper trail of where the money came from if you haven't just sold a house to pay your deposit.

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It looks like it is aim on liars loans and self employed who were avoiding taxes for years.

No, liar loans are fine. They don't care where the bank gets the money to land you.

Makes you think though. Perhaps not such a good plan to save cash under the mattress if you plan on buying a house at some point.

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This sort of thing is very worrying and I could fall foul of it if I decide to buy as I will be paying all cash.

Who is demanding to see these bank statements?

What do bank statements prove anyway? They don't show where the money has come from.

Solicitors want them. They won't accept copies, they have to be originals and "stamped" by the bank. He had to pay the bank for this "service".

If there are any unusual deposits, the solicitor is then supposed to ask where the money came from, and then if the answer doesn't satisfy them, I suppose they have to report that to the authorities.

If I had helped out via the BoMAD, then i would have to prove where MY money came from, as it would be a "unusual" deposit.

BTW, he has only ever worked PAYE, so it's not a case of self-certification.

Edited by corevalue

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Guest eight

No, liar loans are fine. They don't care where the bank gets the money to land you.

Makes you think though. Perhaps not such a good plan to save cash under the mattress if you plan on buying a house at some point.

I can cite a couple of examples of people I know being offered ready cash (ie. actual notes in a suitcase) for their houses. Presumably people with access to so much cash can also find a friendly solicitor to overlook the formalities that the OP is experiencing.

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I know you'll think I am nuts, but WTF is wrong with walking in with a load of cash?

I mean, sure, you could be a drug dealer I suppose.

In the states, people pay cash for quite large sums/items, without a blink.

What has gone wrong here?

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Guest eight

I know you'll think I am nuts, but WTF is wrong with walking in with a load of cash?

I mean, sure, you could be a drug dealer I suppose.

In the states, people pay cash for quite large sums/items, without a blink.

What has gone wrong here?

The people I described with the suitcases full of cash were, for want of a better description, "members of the travelling community". Cash seems to work just fine for them, and round here they're mega into BTL.

If you're renting a house in this town and your landlord doesn't come to collect in a late model white RR Sport then there's something wrong!

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The people I described with the suitcases full of cash were, for want of a better description, "members of the travelling community". Cash seems to work just fine for them, and round here they're mega into BTL.

If you're renting a house in this town and your landlord doesn't come to collect in a late model white RR Sport then there's something wrong!

Whatever happened to "Innocent until Proven Guilty"?

If you are able to pay 100,000's of pounds in cash for a house, surely you're going to get your collar felt at some point!

I just don't like banks, and I don't think they are safe.

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Solicitors want them. They won't accept copies, they have to be originals and "stamped" by the bank. He had to pay the bank for this "service".

If there are any unusual deposits, the solicitor is then supposed to ask where the money came from, and then if the answer doesn't satisfy them, I suppose they have to report that to the authorities.

If I had helped out via the BoMAD, then i would have to prove where MY money came from, as it would be a "unusual" deposit.

BTW, he has only ever worked PAYE, so it's not a case of self-certification.

It's the solicitors being nervous, on account of other solicitors being struck off or jailed in the past for money laundering. The Law Society has a whole section on money laundering and financial crime on its website.

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Whatever happened to "Innocent until Proven Guilty"?

If you are able to pay 100,000's of pounds in cash for a house, surely you're going to get your collar felt at some point!

I just don't like banks, and I don't think they are safe.

Understood and agreed. But this whole anti money laundering thing is probably a good thing. After all, if houses could be used for money laundering then our "honest" money wouldn't stand a chance against the dishonest money. There would be all the more competition, similar to foreigners buying London property.

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Understood and agreed. But this whole anti money laundering thing is probably a good thing. After all, if houses could be used for money laundering then our "honest" money wouldn't stand a chance against the dishonest money. There would be all the more competition, similar to foreigners buying London property.

I suppose so, but isn't it being a little paranoid? I mean, the owner is traceable, the asset won't move (hopefully!!).

If you buy a house with drug money and get caught, expect to lose your house, liberty and everything else you own!

BUT I maintain, it SHOULD be allowable to pay cash for a house.

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I suppose so, but isn't it being a little paranoid? I mean, the owner is traceable, the asset won't move (hopefully!!).

If you buy a house with drug money and get caught, expect to lose your house, liberty and everything else you own!

BUT I maintain, it SHOULD be allowable to pay cash for a house.

It is. But the solicitor wants to know exactly where every penny of the cash has come from, as he/she doesn't want to lose his/her livelihood, liberty etc. because he/she didn't check in sufficient detail.

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It is. But the solicitor wants to know exactly where every penny of the cash has come from, as he/she doesn't want to lose his/her livelihood, liberty etc. because he/she didn't check in sufficient detail.

Correct. Any payment over £3000 cash and they're obliged to ask for origin of funds. Car dealers or anyone else selling high value items are subject to this. If you claim you won it gambling you have to show the betting slips. Damn, it's getting harder and harder to profit from crime.

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Correct. Any payment over £3000 cash and they're obliged to ask for origin of funds. Car dealers or anyone else selling high value items are subject to this. If you claim you won it gambling you have to show the betting slips. Damn, it's getting harder and harder to profit from crime.

Are you sure? I'm not sure that the legislation put a figure on any of it. Maybe the supervisory body has specific member guidance but the various Acts don't.

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My son is trying yo buy his first house. He has a 50% deposit, spread across a number of bank accounts, and some share options which he sold. He has become enmeshed in a nightmare bureaucracy worthy of Kafka. To satisfy current money-laundering legislation, he has to produce at east 10 years of signed bank statements, to demonstrate that the money is really his. As he moved money around banks in the previous years to get the best interest rates, this is no small task. He has piles of statements inches thick now; who the hell is reading this? He always worked PAYE - surely his tax records should suffice, ot at the very least, shouldn't the banks check when you put large amounts IN?

By contrast, if he'd gone in with a minimal amount of deposit, and taken one of the vaunted help schemes for FTB'ers, he wouldn't have to do this.

Do the government realise what a huge, time consuming load of carp this is?

That sounds pretty extreme. I bought my house 2 years ago with a £130k deposit, self-employed and having moved to back the UK only 3 years previously after 10 years abroad. You'd think I'd be a prime candidate for money laundering, but they only wanted a vague declaration of the provenance of the cash ("savings") and 3 months of bank statements.

Either a lot has changed in the past 2 years, or your son needs a different solicitor!

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That sounds pretty extreme. I bought my house 2 years ago with a £130k deposit, self-employed and having moved to back the UK only 3 years previously after 10 years abroad. You'd think I'd be a prime candidate for money laundering, but they only wanted a vague declaration of the provenance of the cash ("savings") and 3 months of bank statements.

Either a lot has changed in the past 2 years, or your son needs a different solicitor!

I agree.

A few bank statements and an ID check is all that should be required.

Never heard of anyone having to jump through as many hoops as the OP’s son.

Change solicitor.

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  • 244 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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