The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 impose mandatory checks on parties involved in property development finance in the UK. Lenders, legal professionals and developers must undertake due diligence on buyers, investors and fund flows to prevent criminal use of property assets. These regulations require identity verification, reporting of suspicious activity, and ongoing monitoring of transactions. Non-compliance may result in criminal penalties or regulatory sanctions. The regulations support transparency across UK property finance, particularly where high-value transactions or foreign investments are involved.
In practice, the regulations form a core part of Statutory and Regulatory Compliance obligations throughout the funding lifecycle, from initial onboarding and source of funds checks through to drawdown and project completion. Developers seeking finance may be required to provide detailed information on ownership structures, beneficial owners, investor contributions and transaction histories, particularly where complex corporate vehicles or overseas participants are involved. Compliance requirements can also influence transaction timetables, legal due diligence and lender risk assessments. This is particularly relevant in transactions involving Platform Lending (Peer-to-Peer), where multiple investors and layered funding arrangements can increase scrutiny of fund provenance and regulatory reporting obligations.
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