More than one in seven (13%) buyers purchasing properties in the UK are using funds from overseas to fund all or part of their purchase, according to new data from client compliance platform Thirdfort.

Having completed around 20,000 Source of Funds verifications via the Thirdfort app every month, the firm can see where the property purchase funds are coming from.

The data gathered by Thirdfort’s Source of Funds tool shows that the top five jurisdictions where funds are coming include the USA, Hong Kong, India, Italy, and France.

Olly Thornton-Berry, co-founder and managing director at Thirdfort, said: “Our data shows that one in seven buyers purchasing property in the UK are using funds from overseas. While funds coming from overseas do not necessarily indicate money laundering, property professionals may need to undertake enhanced due diligence and request additional evidence to support the transactions and ensure they meet their regulatory requirements.

“By using Thirdfort’s Source of funds tool, conveyancers and estate agents can ensure that they do not miss such red flags and they gather additional relevant evidence quickly and securely.”

Thirdfort also monitors the Financial Action Task Force’s (FATF) list of High-Risk Third Countries (HRTCs) and flags professional advisors when funds come from these countries, indicating where enhanced due diligence is necessary.

Data from Thirdfort’s Source of Funds tool shows that less than 2% of purchases use funds from jurisdictions that appear on FATF’s list, with the most common countries including Turkey, Argentina, South Africa, Vietnam and Nigeria.