1. Our Commitment

Magicbrick Estate Agents is committed to preventing the use of the property market for money laundering and terrorist financing.

We are supervised by HM Revenue & Customs (HMRC) for anti-money laundering compliance and strictly adhere to the Money Laundering Regulations 2017 (and any subsequent amendments).

It is a legal requirement that we verify the identity of our clients (both sellers and buyers) and understand the source of funds involved in any transaction. We appreciate your cooperation in providing the necessary documentation to allow us to comply with these obligations.

2. Individual Identity Verification

We are required to verify the identity of all customers. To do this, we require two forms of identification: one from List A (Proof of Identity) and one from List B (Proof of Residence).

List A: Proof of Identity (Must be valid/in date)

  • Current signed Passport.
  • Current UK/EU Photocard Driving Licence.
  • National Identity Card (EEA/Swiss Nationals).
  • Valid Biometric Residence Permit.

List B: Proof of Residence (Must be dated within the last 3 months)

  • Utility Bill (Gas, Electricity, Water – mobile phone bills are not accepted).
  • Council Tax Bill (for the current year).
  • Bank or Building Society Statement.
  • Mortgage Statement (most recent).
  • Current UK Driving Licence (if not used for List A).

3. When Do We Need This?

We cannot proceed with business until these checks are complete.

  • For Sellers: We must complete ID checks before we can market your property.
  • For Buyers: We must complete ID checks before a Memorandum of Sale is issued. We recommend providing this information at the time of making an offer to avoid delays.

4. Electronic Verification

In addition to seeing original documents, we may use specialist third-party electronic verification software (such as Credas or SmartSearch) to verify your identity and check for any “Politically Exposed Person” (PEP) status or sanctions list matches. By instructing us or making an offer, you consent to us undertaking these electronic checks.

Please note: This electronic check leaves a “soft footprint” on your credit file. It does not affect your credit score.

5. Source of Funds (For Buyers)

As well as verifying who you are, we are legally required to verify the source of the money used to purchase the property. We need to understand how you acquired the funds (e.g., savings, inheritance, property sale, gift).

We may ask for:

  • Bank statements showing the accumulation of funds.
  • Evidence of a mortgage in principle.
  • Evidence of property sale (completion statement).
  • A letter from a solicitor regarding inheritance.
  • A letter from a donor (if the money is a gift) – note that we will also need to ID check the person giving the gift.

We reserve the right to ask for further information if the source of funds is not clear.

6. Corporate Clients & Trusts

If you are buying or selling through a Company or Trust, we are required to apply Enhanced Due Diligence. We must identify:

  • The Ultimate Beneficial Owner(s) (anyone holding more than 25% of shares).
  • The Controller of the company (Directors).
  • Evidence of the company’s incorporation.

7. Data Protection

Any personal data and documents provided to us for AML purposes will be processed strictly in accordance with the UK GDPR and Data Protection Act 2018.

  • This data will only be used for the prevention of money laundering and terrorist financing.
  • It will not be used for marketing purposes.
  • By law, we are required to retain copies of your ID and proof of funds for 5 years after the business relationship ends. After this period, the data will be securely deleted.

8. Reporting of Suspicious Activity

Under the Proceeds of Crime Act 2002, if we have any knowledge or suspicion that a person is involved in money laundering or terrorist financing, we are legally obliged to submit a Suspicious Activity Report (SAR) to the National Crime Agency (NCA).

In such strict circumstances, the law prohibits us from “tipping off” the client that a report has been made or that an investigation is underway.