What you need to know about money laundering

Money laundering represents a significant threat to the UK’s national security. According to figures published by the Home Office, it’s a key enabler of serious and organised crime, estimated to be worth £24 billion a year. 

As our capital city, it seems London is also the prime location for money laundering. According to research in the Financial times, £100bn of UK property has been purchased over the last six years by offshore corporate structures. The Metropolitan Police Proceeds of Corruption Unit, found that 75% of properties, worth more than £180 million and held through secret offshore companies, are owned by people under criminal investigation for corruption. 

What is money laundering?

Money laundering is the process of transforming the proceeds of crime and corruption into legitimate assets. Property transactions are a known target for this illegal activity, so all relevant businesses must have appropriate anti-money laundering systems in place. Therefore, anyone buying, selling or renting a house, will find themselves subject to money laundering checks, under the Money Laundering Regulations 2007 and the Proceeds of Crime Act 2002.

What do the checks involve?

Before you can buy, sell or rent a property, estate agents must contain proof of your identity, and proof of your address. Any evidence must be the original documents, or certified copies, dated within the past three months: 

Acceptable forms of identification:

• Current signed passport
• Valid UK or EEA driving license
• EEA member state identity card
• National photo identity card

Acceptable proof of address:

• Recent utility bill
• Recent mortgage statement
• Recent bank/building society statement
• Valid UK or EEA driving license
• State pension benefits book
• Home or motor insurance certificate
• Current local authority tax bill / tenancy agreement
• Solicitor's letter confirming house purchased / land registration
• Electoral Register entry
• NHS medical card