If you’re buying a home in the UK, you’ll be asked to prove your identity and where your money came from. Here’s what anti-money laundering checks involve, why, and how to avoid delays.
Quick answer
AML (anti-money laundering) checks when buying a house confirm your identity and the source of the funds you’re using to buy. They’re a legal requirement under the Money Laundering Regulations 2017, carried out by your estate agent, solicitor/conveyancer and mortgage lender. Most checks take anywhere from a few days to about two weeks, and you’ll usually pay a small fee (often around £10–£30 per person) as part of your conveyancing costs.[1]
What does AML mean when buying a house?
The UK property market moves vast sums and high-value assets, which makes it a prime target for criminals looking to “clean” illicit money. Transparency International has estimated that £6.7 billion of questionable funds has been invested in UK property since 2016.[2] AML checks exist to stop a home purchase being used to launder money — by confirming you are who you say you are, and that your deposit and purchase funds were earned or gifted legally.
Are AML checks mandatory?
Yes. AML checks are a legal requirement, not an optional extra. Propertymark, the UK’s leading professional body for estate agents, is clear that estate agents must carry out these checks on buyers and can be fined or imprisoned if they don’t.[3] Solicitors and conveyancers are independently required to verify identity, address and the full source of funds for every property transaction under the Money Laundering Regulations 2017.[4]
Who does money laundering checks when buying a house?
You may be asked to verify yourself more than once — that’s normal, and it doesn’t mean you’re suspected of anything. Several parties are each legally obliged to run their own checks:[2]
- The estate agent — must verify the identity of buyer and seller, and often asks for proof of funds before or around the offer stage.
- The solicitor / conveyancer — carries out the most detailed checks: identity, address and full source of funds.
- The mortgage lender — verifies your financial background and the legitimacy of your deposit and income.
Do estate agents have to do AML checks on buyers? Yes — Propertymark confirms estate agents must confirm your ID and where your funds came from. This is standard practice for every buyer.[3]
Proof of funds vs source of funds
These sound similar but are different:
- Proof of funds — evidence that you have the money available (e.g. a bank statement showing the balance).
- Source of funds — evidence of where the money came from and that it was obtained legally.
The Law Society advises firms to take a proactive, well-documented approach to the origin of client funds — because a payment arriving from a bank is not, by itself, proof the money is clean.[5]
Source-of-funds evidence you may need
| Where the money came from | Typical evidence |
|---|---|
| Savings | Bank statements showing build-up over time, plus payslips/P60 |
| Sale of a property | Completion statement from the sale, plus a bank statement showing the funds |
| Gifted deposit | A signed gift letter, plus the giver’s ID and their own source of funds |
| Inheritance | Will or grant of probate, and a letter from the executor/solicitor |
| Investments/shares | Confirmation of sale, portfolio statement, bank statement showing proceeds |
Add expert quote before publishing
“The single biggest cause of delay we see isn’t the check itself — it’s incomplete paperwork. Buyers who trace and evidence their deposit early, especially a gifted or one-off lump sum, get through onboarding far faster.”
— Suggested placeholder for a quote from Osman Ismail (founder input, OnBoardNow / DPS Software). Replace with a real, approved quote, or remove.
How long do AML checks take when buying a house?
Every transaction is different, but most straightforward AML checks are completed within a few days to about two weeks.[1] A source-of-funds check usually takes around 5 to 10 days once you provide complete documents, though complex cases with several funding sources can take two to four weeks. Missing or mismatched paperwork is the main cause of delay — so completeness matters more than speed.[6]
5–14 days
typical time for straightforward AML checks
£6.7bn
questionable funds in UK property since 2016
3 parties
agent, solicitor and lender each run checks
How much do AML checks cost, and who pays?
The identity/AML check itself is usually a modest fee — commonly around £10–£30 per person — typically charged by your solicitor or estate agent as part of the transaction costs, and generally paid by the person being checked. Costs vary between firms, so ask upfront. The bigger “cost” is usually time, not money: gathering the right evidence early is what keeps a purchase moving.
Cost figures vary between firms and are indicative — confirm the exact fee with your own agent or solicitor. This is general guidance, not a fixed price.
AML checks when selling a property
Sellers are checked too. Once an offer is accepted, the estate agent’s due-diligence obligations apply to both the buyer and the seller — so as a seller you’ll also be asked to verify your identity.[3]
How to avoid delays
- Gather ID and address documents early — a valid passport or driving licence and a proof of address under three months old.
- Trace your deposit back to its origin — especially for gifts or large one-off credits.
- Keep more history than you think you need — some firms ask for several years of statements.
- Respond quickly — the check is often waiting on your paperwork, not the other way round.
A faster, simpler way for firms to run property AML checks
OnBoardNow lets buyers and sellers verify their identity and submit source-of-funds evidence from their phone in minutes — cutting the paperwork delays that hold up property transactions, with a full audit trail for the firm.Book a demo →
Frequently asked questions
What does AML mean when buying a house?
Anti-money laundering — checks that confirm your identity and that your purchase funds were obtained legally, required by law to stop property being used to launder money.
Are AML checks mandatory?
Yes. They’re a legal requirement under the Money Laundering Regulations 2017. Estate agents, solicitors and lenders must carry them out.
Who pays for AML checks?
Usually the person being checked, via a small fee (often around £10–£30 per person) charged by the solicitor or estate agent. Costs vary — ask upfront.
How long do AML checks take when buying a house?
Most straightforward checks take a few days to about two weeks; source-of-funds checks around 5–10 days once complete documents are provided.
Do estate agents have to do AML checks on buyers?
Yes. Propertymark confirms estate agents must verify buyers’ identity and source of funds, and can be fined or imprisoned if they don’t.
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