Anti-money laundering and property – and the regime’s very curious focus

The day that the Home Affairs Select Committee called for controls on estate agents to be tightened up to prevent money laundering, we received a letter in just that connection.

It was from the solicitors acting in the sale of my mother-in-law’s former home, and who are concerned that she might be a money launderer.

Having some ten days earlier agreed that all the ID information requested – bank statements, a council tax bill and a utility bill – was suitable ID, the solicitors have now decided that they need to make further checks in order to fulfil their legal obligations and asked for more documentation. They now want to see her pension statements.

We found this remarkable for several reasons.

First, my mother-in-law is 94, widowed these last 61 years, and now in a care home.

Second, the law firm is the same one that acted for her 19 years ago when she bought the home she is now selling, and advised on her will and power of attorney (which she does not need to invoke).

And third, no wonder conveyancing is so slow when solicitors feel they have to write letters rather than send emails or pick up the phone. Why?

It is hard to see why suspicion should fall on an elderly lady, the widow of a clergyman, who needs the proceeds of the sale of a modest retirement flat to fund her care.

And yet, some estate agents in London apparently failed to be sceptical of a dodgy Russian buyer called Boris who cheerfully admitted he was buying with corrupt funds which he needed to hide.

Of course we will never know the outcome of the C4 film From Russia With Cash, screened over a year ago to the apparent concern of membership bodies the NAEA and RICS.

This is because the NAEA has said it is not going to publish the results of its inquiry, and the RICS has said nothing at all. Indeed, our email requesting information has not been acknowledged (although maybe we should have sent a letter instead).

It begs the question as to whether the Home Affairs Committee report will also be kicked into the long grass, while conveyancers focus on the real job in hand – which is obviously investigating the money laundering potential of harmless old ladies in care homes who have never lived in London, not travelled outside this country in 50 years and attend church on Sundays.

If the authorities really think that’s a cover for dirty money buying expensive properties in prime London, well it’s certainly one heck of a cover.

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2 Comments

  1. Rob Hailstone

    It would indeed be interesting to know why the solicitors felt the need to carry out further checks, it does seem ludicrous. As for not phoning, it could be:

    1. Emails are being hacked. Lawyers have been advised to deal with sensitive information in a different way.

    2. A copy letter is a better record of the attempts they have made that a phone call note.

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    1. PeeBee

      2. A copy letter is a better record of the attempts they have made that a phone call note.

      Care to guess how many “copy letters” are on files where no ‘original’ was ever sent, Mr Hailstone?

      I’ll wage the answer to be MILLIONS.

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