The process of purchasing a house can seem long and arduous, with many different hoops to jump through and boxes to tick. But these processes are not pointless exercises to make the house buying procedure more complex. AML checks are one such process, put into place by estate agents and private sellers to ensure transactions are made legally and without interaction with money laundering activity.  

Knowing that this process can be stressful and complex on the surface at SmartSearch, we prioritise simplicity, making anti-money laundering (AML) checks fluid and fast for both businesses and customers. Offering a comprehensive, all-encompassing platform, when you collaborate with us, you can enjoy robust KYC checks, source of wealth solutions and much more. 

But, before you reach out to us, let’s break down exactly why AML checks are so important when buying a house. 

What Are AML Checks in the Property Industry?

AML checks in the property industry are put in place to protect the financial integrity of the market by preventing the spread of illicit money laundering activities. By extension, these essential checks also help safeguard the stability of the UK economy. The benefits of AML extend beyond property sellers, too, with customers also being able to experience a more robust, trustworthy financial system thanks to the fluid operation of anti-money laundering protections.

What AML Checks are Needed When Buying a House?

AML checks for hopeful homeowners are straightforward, being broken down into three distinct stages that make the whole process swift and efficient, as long as you’re prepared and compliant. The AML process involves an identification check, an address verification stage and, finally, a proof of funds check that ensures the seller that the funds you’re using for the transaction have been legally and legitimately obtained. 

• Identity verification: This check ensures that a buyer is exactly who they claim to be. 

• Address verification: Verifying a customer’s address helps a company assess the potential risk of a buyer.  

• Proof of Funds check: This final stage of verification makes sure that a buyer has the necessary finances to complete the transaction and that the funds have been sourced legally. 

Identity and address verification are two essential stages in the KYC process, an essential procedure that every estate agency must carry out to fulfil their AML due diligence. Our robust KYC solution at SmartSearch makes this process utterly seamless, incorporating a liveness check, comprehensive verification and risk scoring. 

The Benefits of AML Checks for House Buyers 

The house-hunting process can be stressful, particularly if you’re also working to sell your current property at the very same time. But a proper AML solution when buying a house should be short, swift and simple, offering several key benefits. 

Protect Yourself Against Fraud

Financial crime is a broad and complex web that reaches into the far corners of the economy, meaning you could have been involved with criminal parties without your knowledge. Taking part in a comprehensive AML check will make sure that you aren’t unknowingly involved with these parties, with your participation helping to protect the integrity of the British economy. 

Ensure the Legitimacy of Your Transaction

Purchasing a house is expensive and complex, so you want to make sure that the seller is abiding by the correct legal practices. A seller using a robust AML solution therefore, gives you peace of mind that the transaction is legitimate. 

Streamline the Process

By conducting the proper AML checks, a seller can create a comprehensive profile of who you are and verify that you have the legitimate funds to complete the transaction. This streamlines the buying process and helps you to avoid similar verification questions and delays later down the line. While it may seem like an irritating stage of the process, proper AML checks make everything far more efficient and effortless. 

What are the Benefits of AML Checks for Property Managers?

AML checks are a legal requirement for businesses that operate in the relevant sectors, including everyone from property managers to property developers and investment firms. Their function carries several key benefits: 

Fulfil Legal Compliance 

The British government has set out AML guidelines by which anti-money laundering should be conducted, with these standards being put in place to protect the legitimacy of the sector and the UK economy. Fulfilling these requirements is mandatory and will help you avoid heavy fines and other penalties that come with failing to comply. 

Protect Yourself From Reputational Harm

If a business doesn’t carry out a comprehensive AML process, and they are later found to be associated with criminals who operate illegal financial activities, its reputation could be irreparably damaged. AML procedures, therefore, provide preventative measures that make it far less likely that a company could be associated with such illicit organisations and financial practices, protecting their longevity.  

Safeguard Against Future Risks

Situations with customers can change quickly with the emergence of new information, but if you’ve done your due diligence and have properly verified who you are dealing with, you can identify issues quickly and protect yourself against future risks. While a robust AML onboarding solution is key, safeguarding against future financial risks also relies on a complete monitoring and reporting process. 

Simplifying your AML obligations, at SmartSearch, we can help you complete KYC checks, sanctions and PEP screenings, document verification and much more. By using our platform, you can create a solution that’s both robust and simple, helping to increase the speed and efficiency of your transactions.

Want to discover how our platform can integrate into your current solution? Simply contact us and we can organise a free demo for you and your team!