Savings mismatch top AML red flag in UK property deals, finds Thirdfort – The Intermediary

Savings mismatches were the most common anti-money laundering (AML) red flag in UK property deals, data from Thirdfort found. 

Analysis of over 415,000 completed source of funds checks showed savings mismatch made up 43.04% of red flags, followed by gifted funds at 17.27%, no mortgage at 16.70%, overseas funds at 8.47%, and high cash deposits at 7.12%.

These red flags included funding issues such as gifted deposits, mortgage-free purchases, and overseas transfers. 

Others came from differences between what buyers declared and what was shown in their documents. 

All required more details or paperwork before deals could proceed.

The data showed many transactions were equity-heavy, involved gifting, or had international backing. 

Nearly one in six red flags came from buyers not using a mortgage, while a similar number involved gifted funds. 

Overseas money also appeared regularly, showing the role of cross-border funds in the market.

Olly Thornton-Berry (pictured), co-founder and CEO of Thirdfort, said: “Red flags don’t necessarily equate to wrongdoing, but they do require careful review. 

“Some arise from complex funding structures, others from inconsistencies that need clarification.

“As we can see, property sales involve a lot of cash and increasingly have international connections.”

Thornton-Berry added: “The pressure and complexity on professionals to verify sources of funds is growing. 

“Having well-designed, digital checks makes sure that genuine deals can happen quickly while keeping firms protected from fraud and compliance issues.”