Why Solicitors Ask for Bank Statements

Published 28 Jul 2026

In this article, James McClean, a Residential Solicitor at Millar McCall Wylie, explains why anti-money laundering (AML) checks and source of funds requirements are such an important part of the conveyancing process, and what buyers can expect.

You have been scrolling through PropertyPal and found your dream home. You’ve gone sale agreed and your mortgage is approved. You are ready to go! Then, surprisingly, your solicitor asks for photographic ID, proof of address, bank statements and evidence showing where your deposit has come from.

Frustrating? Definitely. Necessary? Absolutely!

For many people, these checks seem intrusive and an invasion of their privacy. Some clients wonder whether solicitors are being overly cautious or creating extra paperwork.

The reality couldn’t be more different.

Anti-Money Laundering (AML) checks and the investigation of source of funds are now a routine part of the conveyancing process. While they can sometimes seem frustrating, these checks are vital in protecting individuals, businesses and the wider economy.

What is anti-money laundering?

Money Laundering is the process of hiding or disguising the proceeds of crime to make them appear legitimate. Criminals often attempt to move illegal funds through businesses, bank accounts or property transactions so the money appears to have come from a lawful source, in other words, the money is now “clean”.

The property market is an attractive option for criminals, as large sums of money can change hands in a relatively short period of time.

Solicitors are therefore legally required to carry out checks designed to verify the identity of clients, establish where the funds have originated from and ensure those funds have been obtained legitimately.

Such requirements are not unique to solicitors. Estate Agents, Lenders, Accountants and many other regulated professionals must carry out similar checks.

Most importantly, these checks help protect honest clients and reduce the risk of fraud and financial crime.

Why does my solicitor need proof of identity?

Before acting for a client, solicitors must be satisfied that they know exactly who they are dealing with.  This helps prevent identity theft, fraud and attempted false impersonation.

Solicitors typically ask for the following;

1.     A valid passport or driving license.

2.     Proof of address. including a bank statement or utility bill less than three months old.

While this may seem straightforward or arbitrary, these checks have become increasingly important in an age where identity fraud is a growing concern.

What is 'source of funds' and why is it required?

One of the most common questions clients ask is, “Why does my solicitor, who is acting in my interests, need to know where my money comes from?!”

The answer is simple, solicitors must be able to demonstrate the origin of the money being used in any given transaction. This is known as the ‘source of funds’.

For example, your source of funds may be:

• Savings built up over time
• Proceeds from the sale of another property
• Inheritance
• A gift from a family member or friend

It is not enough to show that your deposit monies are ready and waiting in your bank account. Solicitors need to understand how it got there. This is why clients are asked to provide their last three months bank statements, completion statements for the sale of a property, inheritance documentation or the bank statements of the giftor.

Solicitors do not review bank statements to scrutinise your spending habits or your private purchases! They are simply trying to establish a clear trail showing how your funds have accumulated and ensure the documentation provided matches the explanation. 

Millar McCall Wylie is helping to simplify the home-buying experience with cutting-edge technology. Powered by Verify 365, the firm's process combines biometric verification and Open Banking to make ID and source of funds verification more convenient for clients. This allows clients to upload documents, verify their identity and securely share financial information in just a few taps on their smartphone.

Final thoughts

AML and source of funds checks can feel like an unnecessary hurdle at an already stressful time. However, they are incredibly important in safeguarding our economy from activity that is often linked to organised crime.

In most cases, the process is straightforward and can be completed with a well detailed email, together with relevant supporting documents. By understanding why these checks are required and having the necessary documents prepared and ready to go before the process begins, a client can help ensure their transaction proceeds as smoothy as possible.

If you have any questions about anti-money laundering checks or are in the process of buying or selling a property, please contact Millar McCall Wylie