More than one in seven (13%) buyers purchasing properties in the UK are utilising funds from overseas for their purchases, according to new data from the client compliance platform Thirdfort.
Thirdfort, which completes around 20,000 Source of Funds verifications each month via its app, provides insight into the origins of these property purchase funds.
The data from Thirdfort’s Source of Funds tool indicates that the top five jurisdictions from which funds are sourced include the US, Hong Kong, India, Italy, and France.
Olly Thornton-Berry, co-founder and managing director at Thirdfort, said that while the data doesn’t automatically suggest money laundering, property professionals must conduct enhanced due diligence and request additional evidence to support these transactions and meet regulatory requirements.
Using Thirdfort’s Source of Funds tool, conveyancers and estate agents can identify potential red flags and gather necessary evidence swiftly and securely.
The company also tracks the Financial Action Task Force’s (FATF) list of High-Risk Third Countries (HRTCs) and alerts professional advisors when funds originate from these countries, highlighting the need for enhanced due diligence.
The data from Thirdfort’s Source of Funds tool shows that less than 2% of purchases involve funds from jurisdictions on FATF’s list, with the most common countries being Turkey, Argentina, South Africa, Vietnam, and Nigeria.
The UK is home to a significant number of South African emigrants, with 298,000 South African-born citizens residing in the country, reports BusinessTech.
According to the UN Department of Economic and Social Affairs’ 2020 International Migrant Stock report, 247,300 South African emigrants were living in the UK. This indicates a substantial increase of 26%, or 50,700 people, since 2020.
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