Why do we ask for your ID and undertake Anti-Money Laundering (AML) checks?

When you instruct us one of the first things you’ll be asked for is proof of your identity and evidence of your address. This isn’t red tape, it’s a legal requirement designed to protect everyone involved. Solicitors must comply with UK and International Anti Money Laundering regulations which require firms to verify who their clients are, understand the purpose of the transaction, and assess potential risks before any work or transfer of funds begins.

We apply our Client Due Diligence (CDD) for any instruction, whether you’re selling your business, making a will, or buying a home. These checks help us prevent fraud, stop criminals from disguising the origins of illicit money, and ensure that we do not inadvertently facilitate financial crime. We must also identify Politically Exposed Persons (PEPs), ensure clients are not subject to Government sanctions and undertake ongoing monitoring.

We refer to this whole process as ‘client onboarding’.

Source of Funds & Source of Wealth

In transactional matters, we also need to confirm your source of funds and your source of wealth. The first is the evidence that you hold the required money to complete the transaction. The second sounds similar but is distinct; it looks deeper into how you acquired those funds to eliminate any risk of exposure to acting for individuals involved with the proceeds of crime or terrorist financing.

What is Source of Funds?

Source of Funds refers to the specific money being used for a particular transaction for example, the deposit you’re paying to purchase a house or the funds used to fund a business acquisition.

We need to know:

• That you genuinely hold the funds,
• That the funds are under your control, and
• Exactly where those funds came from, not just which bank account they are sitting in.

What is Source of Wealth?

It isn’t enough for us to see a bank statement with the balance on it; we must understand how that money arrived there and whether its origin poses any money laundering or terrorist financing risk. For instance, if money suddenly appeared in an account, we may need several years’ worth of statements to understand how it built up.

How you can get it right first time:

We cannot act for you until the onboarding is complete with satisfactory results. Providing the correct information first time avoids delays. Here are some tips:

• The best forms of ID are a valid passport or photo driving licence and recent bank statement or utility bill confirming your address (dated within the last three months). If you cannot provide these, please speak to us early on.
• Opting to use our digital onboarding platform, Legl, means you easily provide this information without the need to visit our offices in person.
• Sending clear, readable copies or being ready to show originals when requested.
• Responding promptly if we ask for updated ID or other information, especially if documents have expired.
• Being open and transparent about your finances; remember that we are fulfilling a legal requirement.

These checks protect you, our firm, and the public interest. By supplying the right documents promptly or asking for clarification on anything you don’t understand, you help your matter proceed without unnecessary holdups.