Property & Mortgage Fraud Statement

Last Updated: 14/04/2025

1. Purpose of this Policy

1.1 This policy outlines the responsibilities of Thurstan Hoskin Solicitors LLP and those who work for or with us in identifying, preventing, and responding to mortgage fraud and property fraud.

1.2 It ensures that all conveyancing staff are aware of their obligations under legal, regulatory, and professional standards, including those set by the Solicitors Regulation Authority (SRA), the UK Finance Mortgage Lenders’ Handbook, and the Law Society.

2. Policy Statement

2.1 Thurstan Hoskin Solicitors LLP recognises its central role in conveyancing transactions and acknowledges the risk that fraudsters may attempt to use our services to facilitate mortgage or property fraud. We take a zero-tolerance approach and have implemented stringent systems and procedures to detect and prevent such activities.

2.2 This policy applies to all staff and partners involved in property-related transactions and those responsible for regulatory and compliance oversight.

3. What is Mortgage Fraud?

3.1 Mortgage fraud involves one or more parties in a mortgage transaction acting dishonestly to obtain funds or property unlawfully. Examples include:

• Misrepresentation of income or liabilities

• Undisclosed gifted deposits

• False valuations or inflated prices

• Use of fake identification

• Illegitimate sources of funds

3.2 Fraud may be committed by individuals, or as part of organised crime rings. It is a criminal offence and may lead to prosecution.

4. What is Property Fraud?

4.1 Property fraud includes attempts by individuals to falsely represent ownership of a property for the purpose of selling or mortgaging it.

4.2 Payment diversion fraud also falls under this category and occurs when fraudsters intercept communications and redirect sale proceeds or mortgage funds.

4.3 Clients are advised to sign up to the Land Registry’s Property Alert service to help detect unauthorised activity involving their property.

4.4 The firm strictly prohibits the acceptance of bank details via email. All bank details must be received in writing, either in person or by post.

5. Procedures for Preventing Fraud

Thurstan Hoskin Solicitors LLP takes the following steps to mitigate fraud risk:

• Verifying identity in accordance with our AML policy

• Conducting full client due diligence (including source of funds/wealth)

• Requiring sign-off of the CDD form by a department head before completion

• Maintaining staff trained and fit for their roles

• Reviewing files before exchange of contracts

• Conducting enhanced due diligence where appropriate

• Checking the SRA and lender portals for solicitor verification

• Using LMS Conveyancer Zone Account Checker

• Not accepting or sending bank details via email

• Reporting suspicious transactions to the MLRO, SRO or Head of Conveyancing

6. Lender Reporting and Compliance

6.1 Our firm acts for a wide range of lenders. We comply with the UK Finance Mortgage Lenders’ Handbook and lender-specific reporting requirements.

6.2 If a matter arises that must be reported to the lender:

• We check the lender portal for specific instructions

• If unclear, we write to the lender with full details and references

• We keep records of all such communications

6.3 Risk is assessed in every transaction. Files are reviewed by the Head of Conveyancing before exchange. Any issues not yet addressed are escalated.

7. High-Risk Situations

7.1 Enhanced Due Diligence (EDD) is triggered by:

• High-value transactions

• Unusual sources of funds

• Gifts from unconnected third parties

• High-risk sellers or buyers

7.2 In these cases, the file must be escalated to the Head of Department for a decision on whether to:

• Request further information

• Proceed with caution

• Decline to act

8. Staff Training and Awareness

8.1 All conveyancing staff are trained regularly via:

• CQS training modules

• Internal briefings and team meetings

• Updates from the Law Society and SRA

8.2 Staff are encouraged to report concerns promptly to the HOC, SRO or MLRO.

9. Monitoring and Review

9.1 The firm regularly audits conveyancing files to ensure compliance with this policy.

9.2 This policy is reviewed annually or sooner if legal or regulatory changes occur.

9.3 Improvements are implemented promptly. Staff suggestions for enhancements are welcomed.

Contact

If you have any concerns or questions regarding mortgage or property fraud, please contact the Head of Conveyancing, Stephen Morrison, or the firm’s Compliance Partner, Barbara Archer.