Don’t let AI and marketing blur the line between source of funds and source of wealth
Summary
The article warns that AI-enabled onboarding and marketing language can blur the distinction between Source of Funds and Source of Wealth checks in conveyancing. It explains that while AI can improve the presentation and review of financial evidence, it does not change the scope of the underlying AML check or remove the need for professional judgement.
Why it matters
Residential property surveyors may encounter transactions where AML due diligence affects progress, risk assessment, and client communication. Understanding the difference between Source of Funds and Source of Wealth helps surveyors recognise when enhanced scrutiny may be relevant in higher-risk property matters.
Key points
- Source of Funds concerns the money used for the specific transaction; Source of Wealth concerns how the client accumulated overall wealth.
- AI summaries may improve efficiency, but they do not convert a Source of Funds review into a Source of Wealth check.
- Higher-risk cases may require Source of Wealth evidence, especially where funding is complex or clients are politically exposed.
- Firms should apply a risk-based approach and record why a particular level of due diligence was chosen.
- The SRA thematic review reinforces the need for stronger scrutiny, record-keeping and clear rationale.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
