Solicitors meticulously examine bank statements for evidence of legitimate funds, consistent saving patterns, and proper source of wealth documentation as part of their legal obligation to comply with anti-money laundering (AML) regulations when handling property transactions. They scrutinise everything from regular salary payments and accumulation of savings to large or unusual deposits, ensuring all funds used in property purchases come from legitimate sources and aren’t the proceeds of crime.
According to recent findings from the Solicitors Regulation Authority (SRA), only 20% of firms investigated were fully compliant with AML regulations, highlighting the importance of these checks. Economic crime costs the UK between £290bn and £350bn each year—roughly double the NHS England budget—with an estimated £180 million laundered through property transactions between 2004 and 2015. This explains why solicitors have become increasingly cautious, with most now requesting 6-12 months of bank statements rather than the 3 months that was once standard practice.
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Why Solicitors Request Your Bank Statements for Property Transactions?
Bank statements form a crucial part of the enhanced due diligence process required under the Money Laundering Regulations 2017. While it might feel intrusive to share such personal financial information, solicitors face serious consequences—including hefty fines and potential criminal charges—if they fail to properly verify the source of funds. The Law Society recommends that solicitors verify the client’s funds until they understand where the overall wealth originated and can confirm its legitimacy.
What Specific Information Do Solicitors Look For in Your Bank Statements?
Solicitors don’t just glance at your balance—they conduct a thorough analysis of your financial activity. Here’s a comprehensive breakdown of what they’re searching for:
| Focus Area | What Solicitors Are Looking For | Why It Matters |
|---|---|---|
| Regular income | Consistent salary payments or earnings | Confirms legitimate source of funds |
| Savings pattern | Gradual build-up of funds over time | Shows natural accumulation vs. suspicious lump sums |
| Large deposits | Explanation for any significant sums | Could trigger further questions if unexplained |
| Account ownership | Names and addresses matching ID | Confirms funds belong to the buyer |
| Transfers between accounts | Clear trail of money movement | Ensures transparency in fund movements |
| Cash transactions | Explanation for large cash deposits/withdrawals | Cash is harder to trace and higher risk for money laundering |
| Gifted deposits | Source of funds from family members | Requires additional verification from the gift-giver |
| Account details | Sort code and account number | Ensures secure transfer of completion funds |
This detailed examination aims to create a clear picture of how you accumulated your deposit and whether the funds originated from legitimate sources. Solicitors are particularly vigilant about any transactions that appear inconsistent with your declared income or financial situation.
Different Types of Proof of Funds Solicitors May Request
Depending on how you’ve accumulated your deposit, solicitors may ask for different supporting documentation:
Salary/earnings: Six months of bank statements showing income payments plus corresponding payslips
Property sale proceeds: Completion statement from previous sale and bank statement showing funds received
Inheritance: Estate accounts or a copy of the will plus bank statement showing the inheritance payment
Gifted deposits: Bank statements from the person gifting the money plus their ID and source of funds
Investment/pension withdrawals: Evidence of the withdrawal and subsequent bank statement
Business income/dividends: Tax returns and confirmation from accountants
Will solicitors accept online bank statements?
Yes, solicitors can accept online bank statements, but there are important conditions. Most solicitors require statements to be official PDF downloads from your online banking, showing your name, address, and account details. For anti-money laundering and ID checks, some firms may ask for these statements to be certified as true copies by your bank—especially if they’re being used as proof of address or source of funds. If you print statements at home, your solicitor might need them stamped at a bank branch to confirm authenticity. Increasingly, many solicitors now accept online statements, but always check their specific requirements before sending documents, as some still prefer hard copies or certified versions for legal compliance.
When does solicitor check proof of funds?
Solicitors in the UK usually check proof of funds as soon as your offer on a property is accepted. This step is required to meet anti-money laundering regulations and to confirm that all money used for the purchase comes from a legitimate source. You’ll be asked to provide bank statements—often covering the last 3 to 6 months—showing how you’ve saved your deposit or purchase funds, along with documents for any gifted money, inheritance, or asset sales. Delays in providing proof can slow down the buying process, so it’s wise to gather your paperwork early. Estate agents might also ask for proof of funds before solicitors get involved, but the legal checks are done once your offer is accepted.
Real-Life Scenario: When a Buyer Can’t Prove Their Source of Funds
Robert from Warwick was relieved to find a buyer for his inherited property, but the sale quickly hit a snag. The buyer’s solicitor requested detailed proof of the source of funds, including bank statements showing how the deposit and purchase money had been accumulated, as required under anti-money laundering regulations. Unfortunately, Robert’s buyer couldn’t provide a clear paper trail—there were gaps in the bank statements, and some of the funds had come from overseas family gifts without proper documentation.
With the solicitor unable to verify the legitimacy of the buyer’s funds, the transaction stalled. Solicitors are legally obligated to ensure all money used in a property purchase comes from a legitimate source, and if this cannot be proven, the sale cannot proceed. In Robert’s case, the buyer’s inability to satisfy these checks meant the deal fell through, leaving Robert back at square one and worried about his chances of selling.
Frustrated with the uncertainty and delays, Robert contacted Property Saviour. As a specialist cash house buyer, we buy any property and are experienced in handling complex sales, including those involving inheritance or documentation issues. Our process is straightforward and empathetic, offering sellers certainty and a guaranteed sale—no matter how complicated the paperwork or buyer’s situation. If you’re facing similar problems with buyers unable to prove their funds, get in touch with Property Saviour for a stress-free, reliable solution.
Why Do Solicitors Need 6 Months of Bank Statements Instead of Just 3?
Solicitors typically request six months of statements (sometimes up to 12 months) because this provides a more comprehensive picture of your financial situation. While three months might satisfy some lenders, the Law Society recommends that solicitors verify source of funds until they’re comfortable they understand where your wealth originates from. The longer timeframe helps establish patterns of saving and income, making it easier to identify any unusual transactions that might require explanation.
Do I Need to Provide Bank Statements When Selling a Property?
Yes, even as a seller, you may need to provide bank statements in certain situations. Your solicitor has legal obligations to prevent money laundering regardless of whether you’re buying or selling. For example, if you’re selling a buy-to-let property and have been receiving cash payments from tenants, your solicitor might request statements to verify this income. Similarly, when directing where the sale proceeds should be sent, your solicitor may need to verify the account details to prevent fraud.
Can a Solicitor Reject My Proof of Funds?
While outright rejection is rare, solicitors can and do request additional documentation if what you’ve provided doesn’t sufficiently explain your source of funds. Common reasons for requesting more information include:
Unexplained large deposits
Inconsistencies between stated income and account balances
Incomplete statements with missing pages or transactions
Foreign currency transactions without clear explanation
Multiple transfers between different accounts without a clear audit trail
The key is to be transparent and provide a clear paper trail. If you can’t provide certain documents, explain why and offer alternative evidence.
What If I Can’t Provide All the Requested Bank Statements?
If you’re struggling to provide all the requested documentation, don’t panic. Consider these alternative approaches:
Speak directly with your solicitor: Explain your situation and ask what alternative documentation might be acceptable
Request statements from your bank: Most banks can provide archived statements going back several years
Provide supporting evidence: Payslips, P60s, tax returns, or employer letters can sometimes supplement missing statements
Consider a statutory declaration: In some cases, a formal legal declaration can help, though this isn’t always accepted
How to Prepare Your Bank Statements for Solicitors: A Practical Checklist
To avoid delays in your property transaction, follow these key steps when submitting bank statements:
Download complete statements in PDF format (not screenshots)
Ensure statements include your name, address, and account details
Provide all pages, even those that appear blank
Highlight regular income payments to make them easy to identify
Prepare explanations for any unusual transactions in advance
Organise statements chronologically for each account
Include statements for all accounts that contributed to your deposit
Obtain statements promptly when requested rather than waiting
Being proactive with these preparations can significantly streamline the process and help your solicitor complete their checks more efficiently.
Simplifying Property Transactions with the Right Support
Understanding what solicitors look for in bank statements can help make your property journey smoother, whether you’re buying or selling. If you’re finding the process overwhelming or facing delays due to documentation requirements, remember that there are alternatives available.
At Property Saviour, we understand the challenges faced by property sellers and offer a compassionate approach to those dealing with complex situations. Whether you need to sell inherited house quickly, are struggling with documentation requirements, or simply want a hassle-free sale, we can help. As a trusted cash house buyer, we provide certainty and speed in uncertain times. Get in touch today for a no-obligation chat about how we can help you move forward with confidence.
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