How Money Lanudering Laws Affect Purchacers At Auction

Often when you buy at auction you will be asked for specific information. This is under the Governments Money Laundering rules.

So the Government has drawn in a range of professions in the UK directly into the fight against money laundering.

From auction houses to accountants, estate agents to jewellery dealers – anyone working in a field which handles large amounts of other people’s money will find themselves drafted into efforts to crack down on dirty money.

The Money Laundering Regulations 2003
The Monday Laundering Regulations 2003 came into force on Monday 1st March 2004. These regulations cover the activities of many service providers, including Estate Agents and Auctioneers.

As with banks, IFA’s and other professional service providers, we are now required to obtain proof of the buyer’s identity. This means all successful buyer’s must provide proof of identity and residency to the Auctioneers immediately after the fall of the hammer, when completing the Memorandum of Sale.

All auctions are affected by this legislation.

The following information details the documents accepted for proof of identity and proof of residency, 1 (one) document is required from each listing:

Proof of identity

current signed UK/EU passport
current full UK/EU Photo card driving licence
current full UK Driving licence (old style)
resident permit issued by the Home Office to EU Nationals
Inland Revenue Tax Notification statement containing current address
Firearms certificate

Proof of address

current full UK/EU Photo card driving licence
current full UK driving licence (old style)
a utility bill issued within the last three months (excluding mobile phone bills)
Local Authority tax bill – valid for the current year
Bank, Building Society or Credit Union containing current address
The most recent original mortgage statement from a UK lender

* Please note that a provisional Driving Licence will not be accepted, it must be a FULL licence.
* A Driving Licence can only be used as evidence of identity OR address but not for both

If the purchaser’s details are different from the successful bidder, the purchaser must then provide proof of identity and residency to their solicitor, a copy of this will be requested by us following the auction.

All high-cash businesses have an obligation to report, but those most likely to be affected include: