Source of funds checks are still catching conveyancers out. Here’s why.
Summary
The article reports on an SRA thematic review of source of funds and source of wealth checks in conveyancing, finding a significant proportion of files with inadequate scrutiny or no check at all. It argues that the main issue is not knowledge of the rules, but the practical challenge of applying a risk-based approach consistently under workload pressure, and highlights technology as a way to improve audit trails and decision-making.
Why it matters
While focused on conveyancing, the findings are relevant to residential property surveyors because AML and transaction scrutiny form part of the wider property transaction ecosystem. Surveyors working alongside conveyancers should be aware that compliance weaknesses can affect transaction timelines, client due diligence expectations and professional risk management.
Key points
- SRA review found 18% of reviewed files had inadequate source of funds scrutiny.
- 11% of files reviewed had no source of funds check at all.
- The article says the main challenge is consistent application of risk-based checks under heavy caseloads.
- It highlights open banking and digital tools as a way to improve evidence review and audit trails.
- The piece references LSAG guidance and the need for documented compliance decisions.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
