Intrusive Money Laundering questions

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  • Intrusive Money Laundering questions

    I'm sure you've all been asked them...

    What is the source of your funds? How much? etc etc.

    Virgin Money recently returned my questionnaire where I replied 'rental income'.
    'Unfortunately we have been unable to accept the form because we require you to state an amount for which you obtained your wealth.'
    What does that mean? How much did I pay for my properties? Where did I get the money 20 years ago? There is no nefarious source, but I am almost frightened to go into too much depth for fear of generating even more questions.

    What would you guys do?

  • #2
    They'll be experts in nefarious sources.... (Seriously..,)
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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    • #3
      'Savings' ?

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      • #4
        Your post (let alone their quote!) is a bit unclear so I may have misunderstood: you talk about wealth gathered by "rental income" but then mention "how much you paid for [your] properties." Are you saying that you paid for properties by means of rental income? I'm assuming that, 20 years ago, regulations were different and conveyancing solicitors did not require proof of funds as they do now. Otherwise, you would have had to prove this back then.

        Originally posted by JK0 View Post
        I am almost frightened to go into too much depth for fear of generating even more questions.
        Leaving aside the strange phrase "almost frightened", what do you have to fear from more questions? Either everything is above board and you've therefore no reason to fear more questions or it isn't and you are in danger of being found out. If all was above board and you genuinely have no proof because of the length of time involved, that's all you can plead and let them make their decision based on that.

        I think Virgin Money are right on the money here. They have identified that, when asked for detail, you provided a generality. That, on a questionnaire designed to ascertain whether there has been any money laundering, is a red flag. The only way out of this is to provide more detail, preferably with figures.

        Originally posted by JK0 View Post
        What would you guys do?
        Answer any questions they wanted to ask to the best of my ability providing paperwork where possible.

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        • #5
          They will want to know enough to be able to show that they checked that you are not like Scott Rowbotham - http://www.manchestereveningnews.co....perty-12993431

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          • #6
            I like this bit reported in the Manchester paper :

            "The lending institutions have done very nicely out of Mr Rowbotham over the years. He obviously has a great talent for industry, it’s a shame that through impatience he became unstuck.”

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            • #7
              That was a quote from the defense lawyer.

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              • #8
                If you have failed the money laundering checks then they will have to report you to the authorities so I would possibly prepare for an investigation. Apparently this is a legal requirement for everyone that fails

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                • #9
                  Being not very criminal I would have to ask , How do you overstate the value of a property purchase, surely the banks check the value prior to lending.

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                  • #10
                    Over 10 years ago, Erinaceous was a listed company which collapsed due to overvaluation by one of its surveyors in collusion with a borrower who had applied for mortgage .for commercial building and disappeared with 10 times the market value of the property.

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                    • #11
                      Quite easy to over value....>Company A buys a property for 100k......sells it to company B for 500k saying they have done major improvements and got a great tenant paying 30k per annum, as an example....bank lends 60% = 300k

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                      • #12
                        The Money Laundering Act places specific requirements on both lenders and introducing brokers , indeed there is a specific examination which needs to be taken to demonstrate that one knows what steps need to be taken to satisfy the proof of deposit.

                        I have recently acted for an ExPat living in a Non Fatf recognised country , and his monies had to be remitted to his UK solicitor for acceptance before they were subsequently paid to redeem part of the outstanding mortgages. It is called Transparency in all transactions and that extends to monies gifted from a parent to a son or daughter.

                        Fraud has been prevalent for some considerable time and as Gordon clearly states even professional firms have been known to try and circumvent the processes.

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