Understanding Anti-Money Laundering Regulations for Property Buyers and Sellers
Understanding AML Regulations 2026 | New Move Estate Agents
Understanding Anti-Money Laundering (AML) Regulations for 2026
Buying or selling a property in 2026 involves more than just a price agreement. Anti-Money Laundering (AML) regulations are a mandatory legal requirement designed to prevent the estimated £10 billion of illicit funds that attempt to enter the UK housing sector each year. For you, this means a rigorous but necessary "onboarding" process to ensure your transaction is secure and compliant.
1. The 2026 "Digital Identity Wallet"
In 2026, the property industry has moved toward reusable compliance. Instead of performing the same ID checks multiple times for your agent, solicitor, and mortgage broker, new government-certified tools are streamlining the process.
- Verify Once, Share Many: Services like Credas now offer a "Compliance Wallet." You verify your identity once using your smartphone and can securely share that "PASS" certificate with all parties in the chain, significantly speeding up the moving process.
- Biometric Security: Verification usually involves a "liveness" selfie and a cryptographic scan of the chip in your passport to ensure 100% authenticity.
2. Proving Your "Source of Funds" (SoF)
Agents and solicitors are legally required to document not just that you have the money, but exactly where it came from. Providing this early prevents mid-transaction freezes.
| Fund Source | Common Evidence Required (2026 Standards) |
|---|---|
| Personal Savings | 6–12 months of bank statements showing the gradual build-up of funds. |
| Inheritance | A copy of the Will or a letter from the executors confirming your entitlement. |
| Gifted Deposits | A signed declaration from the donor, plus their ID and proof of where they got the money. |
| Property Sale | A formal completion statement from your previous solicitor. |
3. Mandatory Sanctions Screening
As of January 28, 2026, the UK government launched a Single Sanctions List. Estate agents must now use automated software to screen all buyers and sellers against this list. This ensures that no person involved in the transaction is subject to international financial restrictions, protecting the integrity of your sale.
4. Why This Protects You
- Transaction Security: Comprehensive checks prevent "failed chains" caused by one party’s funds being flagged by a bank or HMRC at the last minute.
- Market Stability: By keeping criminal funds out, the regulations help ensure that local house prices in areas like Crawley and Turners Hill aren't artificially inflated.
- Reduced Fraud: Stricter ID checks make it almost impossible for scammers to impersonate homeowners and "sell" properties they don't own.
Summary Compliance Checklist
- Identity: Ensure your Passport or Photo Driving Licence is in date.
- Proof of Address: Keep a utility bill or bank statement (dated within the last 3 months) ready.
- Digital Invite: Look out for an email from Credas or your agent’s chosen provider to start your digital check.
Note for 2026: HMRC has significantly increased enforcement. In early February 2026, 170 estate agents were fined nearly £840,000 for compliance failures. If an agent isn't asking for these documents, they are putting your transaction at risk.
Do you have questions about a complex source of funds?
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