Nearly six in ten UK property purchases trigger AML red flags
Nearly six in ten UK property purchases now require further scrutiny under anti-money laundering (AML) rules, according to new data from client due diligence platform Thirdfort.
Analysis of more than 415,000 completed Source of Funds (SoF) checks found that 57.7% of transactions contained at least one red flag, with an average of two flags per report, underlining the scale of compliance work facing conveyancers and estate agents.
While a red flag does not indicate wrongdoing, it does require enhanced due diligence and supporting evidence before a transaction can proceed. Without automation, each of these flagged transactions would typically require manual follow-up, additional document requests and repeated communication between professionals and buyers.
Olly Thornton-Berry, co-founder and CEO at Thirdfort, said: “Our data shows that enhanced due diligence is now the norm rather than the exception in UK property transactions.
When nearly six in ten purchases require additional checks, that represents a significant operational burden for conveyancers and estate agents, particularly those still relying on manual processes.
Technology plays a critical role in reducing back-and-forth, prompting buyers for the right information upfront and surfacing risk indicators quickly and securely.”
Thirdfort’s mission is to protect society from fraud and money laundering. The platform offers simple and secure client due diligence checks for regulated professionals, through automated ID verification, anti-money laundering and Source of Funds checks on individuals and businesses conducting high-value transactions such as buying property, drafting a will or instructing a financial advisor.
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