Why We Ask for Digital ID, Source of Funds and Biometric Verification
A useful guide by Cassandra Ogilvy, Compliance Officer at TMT Legal Services
If you're buying or selling a property, one of the first things we'll ask for is proof of your identity and evidence of where your money has come from. It can sometimes feel like an extra layer of administration, but these checks are there to protect you, your transaction and the wider property market.
Property transactions involve large sums of money, making them attractive targets for fraudsters and criminals. Identity verification and anti-money laundering (AML) checks are legal requirements for law firms, but they're also an important safeguard against fraud, identity theft and financial crime.
TMT Legal Services carries out these checks at the very start of your transaction. Getting everything in place early helps keep your matter moving smoothly and reduces the risk of delays further down the line.
Why Do Law Firms Ask for ID?
We need to confirm:
That you are who you say you are.
That your address details are correct.
That the funds you’re using are from a legitimate source.
You'll be asked to provide photo ID, proof of address and evidence showing where your deposit or purchase funds have originated. This could include savings statements, inheritance documentation, investment withdrawals or proceeds from a property sale.
Why We Use Digital ID Verification
To make the process as simple and secure as possible, we use Thirdfort, a trusted digital verification platform used by law firms across the UK.
Through the Thirdfort app, you can complete your identity checks remotely using your smartphone. The app securely verifies your identity using document checks and biometric technology, matching your photo ID to a live image to help confirm that the person presenting the identification is genuinely the document holder.
Digital verification offers several benefits:
Faster completion of identity checks.
Reduced paperwork and fewer office visits.
Enhanced protection against identity fraud.
A secure and user-friendly experience.
Using Thirdfort allows us to verify your identity quickly and securely while maintaining the high standards required by anti-money laundering regulations and our PII Insurance requirements.
Your Privacy and Security
We understand that sharing personal information can feel daunting. Any information you provide is encrypted, protected and used only for verification and compliance purposes. Using Thirdfort not only helps us meet our legal obligations but also provides an extra layer of protection against fraud, giving you peace of mind that your information and transaction are being handled securely.
Understanding Source of Funds and Source of Wealth Checks
As part of our legal obligations, we also need to understand the origin of the money being used in your transaction.
Source of Funds (SOF) refers to the specific money being used for the purchase, such as savings, the proceeds of a house sale, an inheritance or a gifted deposit.
Source of Wealth (SOW) looks at how a person accumulated their overall wealth over time, for example through employment, business ownership, investments or inheritance.
These checks help demonstrate that the funds involved have been obtained legitimately and are a vital part of preventing money laundering and financial crime.
Gifted Deposit? We Have to Check Those Too.
If a family member or friend is contributing towards your deposit, they'll also need to provide identification and evidence showing where those funds came from, even if they aren't being named on the mortgage or property title. This isn't optional. It's a requirement of both anti-money laundering regulations and most mortgage lenders. Verifying giftors early helps avoid last-minute issues, particularly on new build purchases or transactions where completion deadlines are tight.
Why It Matters More Than You Think
Delayed checks can slow down transactions.
Incomplete information can lead to additional enquiries from lenders.
Funds that cannot be clearly evidenced may put exchanges and completions at risk.
By completing due diligence properly and at an early stage, we can minimise uncertainty and help keep your transaction on track.
We're Here to Help
Strong identity verification, biometric checks, Source of Funds enquiries and anti-money laundering procedures are not simply red tape. They form the foundation of a safe and secure property transaction. By using modern digital tools such as Thirdfort, we can complete these important checks efficiently while helping to protect your money, your property and the integrity of the transaction process.
We understand that buying or selling a home can feel overwhelming at times, and being asked for identification and financial information may seem like just another item on an already long to-do list. However, these checks are there to protect you as much as anyone else. Our team will guide you through each step, explain what is needed and why and make the process as straightforward as possible.
If you're ever unsure about a request or have questions along the way, we're only a phone call or email away. We're here to help, provide reassurance when it's needed and ensure your transaction progresses smoothly, securely and with confidence from start to finish.
