Skip to main content

Source of Funds Declaration

For Buyers​

Source of Funds​

Declaration, Disclosure and Indemnity

E-Solicitors Legal Services Marketplace

─────────────────────────────────────

Mandatory Source of Funds Requirements​

Your Funds | Third Party Funds | Disclosure Obligations

─────────────────────────────────────

Version 1.0 - January 2026

England and Wales

Important Notice to Buyers​

  • YOU MUST DECLARE THE SOURCE OF FUNDS YOU USE TO PAY FOR LEGAL SERVICES. IF FUNDS ARE NOT YOUR OWN, YOU MUST NOTIFY THE SOLICITOR BEFORE THEY ACCEPT YOUR INSTRUCTIONS.

Why Source of Funds Matters

Solicitors are legally required to verify the source of funds used to pay for legal services. This is part of their anti-money laundering (AML) obligations under the Money Laundering Regulations 2017. Failure to provide accurate information about your source of funds may:

Prevent the solicitor from acting for you

Result in the solicitor declining your instructions

Require additional verification and delay your matter

In serious cases, result in reports to the National Crime Agency

Your Obligations Under These Terms

  • REQUIRED: You must declare whether funds are your own or from a third party

  • REQUIRED: If funds are from a third party, you must notify the solicitor BEFORE they accept your instructions

  • REQUIRED: You must provide truthful information about the source and origin of funds

  • REQUIRED: You must cooperate with the solicitor's verification requirements

  • REQUIRED: You must notify the solicitor if the source of funds changes

Third Party Funds - Special Requirements

  • If someone else is paying your legal fees, or if funds come from any source other than your own accounts, you MUST disclose this to the solicitor. Third party payments require additional checks by the solicitor.

Your Indemnity to the Platform

🛡 INDEMNITY: You indemnify the Platform for any claims arising from false or misleading declarations about your source of funds

🛡 INDEMNITY: You indemnify the Platform for any consequences of your failure to notify the solicitor of

third party

funds

🛡 INDEMNITY: You indemnify the Platform if your matter is declined or terminated due to source of funds issues

Contents​

Part A: General Provisions​

  1. Definitions

  2. Purpose of These Terms

  3. Platform Status

  4. Your Acknowledgments

Part B: Source of Funds Declaration​

  1. Mandatory Declaration

  2. Your Own Funds

  3. Third Party Funds

  4. Mixed Funding Sources

  5. Truthfulness Obligation

Part C: Third Party Funds - Disclosure Requirements​

  1. What Constitutes Third Party Funds

  2. Mandatory Disclosure to Solicitor

  3. Information Required

  4. Timing of Disclosure

  5. Consequences of

Non-Disclosure

Part D: Solicitor's Aml Obligations​

  1. Solicitor's Legal Requirements

  2. What Solicitors Must Verify

  3. Your Cooperation

  4. Additional Checks for Third Party Funds

  5. Right to Decline Instructions

Part E: Source of Wealth​

  1. When Source of Wealth is Required

  2. Information You May Need to Provide

  3. Your Obligations

Part F: Ongoing Obligations​

  1. Changes to Funding Source

  2. Additional Funds During Matter

  3. Notification Requirements

Part G: Regulatory Framework​

  1. Money Laundering Regulations 2017

  2. Proceeds of Crime Act 2002

  3. SRA Requirements

  4. Law Society Guidance

  5. FCA Consumer Duty

Part H: Indemnity Provisions​

  1. General Indemnity

  2. Indemnity for False Declarations

  3. Indemnity for

Non-Disclosure

  1. Indemnity for Regulatory Issues

  2. Scope of Indemnity

Part I: Consequences of Non-compliance​

  1. Solicitor Actions

  2. Platform Actions

  3. Regulatory Reporting

Part J: General Provisions​

  1. Warranties

  2. Data Protection

  3. Governing Law

Schedules​

Schedule 1: Source of Funds Declaration Form

Schedule 2: Third Party Funds Disclosure Form

Schedule 3: Common Source of Funds Categories

Schedule 4: Required Evidence by Source Type

Schedule 5: Indemnity Acknowledgment

Part A: General Provisions​

  1. Definitions

1.1 In these Terms:

'AML' means anti-money laundering.

'Beneficial Owner' means an individual who ultimately owns or controls more than 25% of a legal entity.

'Buyer' or 'You' means the person instructing legal services through the Platform.

'CDD' means Customer Due Diligence as required by MLR 2017.

'Claim' means any claim, action, proceeding, demand, liability, loss, damage, cost, or expense.

'EDD' means Enhanced Due Diligence.

'Gift' means funds provided to you without expectation of repayment or consideration.

'Indemnified Parties' means the Platform, its parent companies, subsidiaries, affiliates, directors, officers, employees, and agents.

'Legal Services' means the legal services you are instructing through the Platform.

'Loan' means funds borrowed from any source, whether formal or informal.

'Losses' means all losses, liabilities, damages, costs, expenses (including legal fees), fines, penalties, and other amounts.

'LSAG 2025' means the Legal Sector Affinity Group Anti-Money Laundering Guidance 2025.

'MLR 2017' means the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 (as amended).

'NCA' means the National Crime Agency.

'Own Funds' means funds that belong to you, are held in your own accounts, and were generated or accumulated by you.

'Platform' means [Platform Name], operated by [Company Name].

'POCA' means the Proceeds of Crime Act 2002.

'SAR' means Suspicious Activity Report.

'Solicitor' means the solicitor or authorised body providing Legal Services to you.

'Source of Funds' means the origin of the specific funds being used to pay for Legal Services.

'Source of Wealth' means the origin of your overall wealth and how you accumulated it.

'Third Party' means any person or entity other than you.

'Third Party Funds' means funds provided, loaned, or gifted by any Third Party to pay for Legal Services.

  1. Purpose of These Terms

2.1 These Terms establish your obligations regarding:

(a) Declaring the source of

funds

you use to pay for Legal

Services;

(b) Disclosing third party funding arrangements to the

Solicitor;

(c) Cooperating with the Solicitor's AML verification

requirements;

(d) Indemnifying the Platform for issues arising from source of funds matters.

2.2 These Terms supplement and do not replace the main Buyer Terms and Conditions.

  1. Platform Status

3.1 The Platform:

(a) Is a technology marketplace facilitating

introductions;

(b) Is NOT a law firm or authorised

body;

(c) Is NOT regulated by the

SRA;

(d) Does NOT conduct AML checks on

you;

(e) Does NOT verify your source of

funds;

(f) Does NOT receive or hold funds for legal

services;

(g) Is NOT responsible for the Solicitor's AML compliance.

3.2 AML verification is the Solicitor's responsibility. The Platform facilitates your declaration but does not verify it.

  1. Your Acknowledgments

4.1 By using the Platform, you acknowledge that:

(a) Solicitors have legal obligations to verify source of

funds;

(b) You must provide accurate source of funds

information;

(c) Third party funds must be disclosed to the

Solicitor;

(d) The Solicitor may decline instructions if source of funds concerns

arise;

(e) False declarations may have serious legal

consequences;

(f) You indemnify the Platform for source of funds issues.

Part B: Source of Funds Declaration​

  • YOU MUST DECLARE THE SOURCE OF ALL FUNDS USED TO PAY FOR LEGAL SERVICES.
  1. Mandatory Declaration

5.1 Before instructing Legal Services, you MUST declare:

(a) Whether funds are your own or from a third

party;

(b) The source of the funds (e.g., savings, sale proceeds, gift, loan

);

(c) The origin of the funds (e.g., employment income, business profits

);

(d) Any

third party

involvement in funding.

5.2 This declaration is:

(a) Mandatory - you cannot proceed without

it;

(b) Made under penalty of

indemnity;

(c) Subject to verification by the

Solicitor;

(d) Binding on you throughout the matter.

  1. Your Own Funds

6.1 Funds are 'Your Own Funds' if:

(a) They are held in bank accounts in your

name;

(b) They were earned, saved, or accumulated by

you;

(c) No third party has contributed to

them;

(d) You have full control over

them;

(e) They are not borrowed, gifted, or provided by others.

6.2 Common sources of Your Own Funds:

Source Type

Description

Evidence Often Required

Savings

Accumulated from income over time

Bank statements showing accumulation

Employment income

Salary, wages, bonuses

Payslips, employment contract

Business profits

Profits from your business

Accounts, tax returns

Investment returns

Dividends, interest, capital gains

Investment statements

Pension

Pension income or lump sum

Pension statements

Property sale

Proceeds from property you owned

Completion statement, bank receipt

Inheritance (to you)

Money inherited by you

Grant of probate, executor letter

  1. Third Party Funds

7.1 Funds are 'Third Party Funds' if:

(a) They are provided by someone other than

you;

(b) They are loaned to you by any person or

entity;

(c) They are gifted to you for this

purpose;

(d) They come from joint accounts where the other party

contributed;

(e) They are paid directly by someone else to the

Solicitor;

(f) A company or trust is providing funds on your behalf.

  • IF FUNDS ARE FROM A THIRD PARTY, YOU MUST NOTIFY THE SOLICITOR. See Part C for disclosure requirements.

7.2 Common Third Party Funds situations:

Situation

Third Party Funds?

Disclosure Required

Parents paying your legal fees

Yes

Yes - disclose identity and relationship

Employer paying legal fees

Yes

Yes - disclose employer details

Spouse/partner paying from their account

Yes

Yes - disclose relationship

Loan from family member

Yes

Yes - disclose lender and terms

Bank loan for legal fees

Yes

Yes - disclose lender

Company paying for director's matter

Yes

Yes - disclose company details

Crowdfunded legal fees

Yes

Yes - disclose platform and contributors

Friend lending money

Yes

Yes - disclose lender and relationship

Joint account with equal contributions

Potentially

Disclose if partner's funds used

  1. Mixed Funding Sources

8.1 If your legal fees will be paid from multiple sources:

(a) Declare all sources of

funds;

(b) Indicate the proportion from each

source;

(c) Disclose any third party

involvement;

(d) Provide information on each source as required.

8.2 Example: If you are paying 50% from savings and 50% from a loan from your parents:

(a) Declare savings as Your Own Funds (50%

);

(b) Declare parental loan as Third Party Funds (50%

);

(c) Provide identity information for your

parents;

(d) Explain the loan terms (gift/repayable).

  1. Truthfulness Obligation

9.1 You warrant that all source of funds declarations:

(a) Are true and

accurate;

(b) Are complete and not

misleading;

(c) Do not omit material

information;

(d) Are made in good faith.

9.2 Making false declarations may:

(a) Result in the Solicitor terminating your

retainer;

(b) Result in Platform account

suspension;

(c) Trigger regulatory reports to

NCA;

(d) Expose you to civil and criminal

liability;

(e) Trigger your indemnity obligations to the Platform.

Part C: Third Party Funds - Disclosure Requirements​

⚖ LEGAL REQUIREMENT: If funds are not your own, you MUST notify the Solicitor BEFORE they accept your instructions.

  1. What Constitutes Third Party Funds

10.1 Third Party Funds include (but are not limited to):

(a) Gifts from family members, friends, or

others;

(b) Loans from any person (formal or informal

);

(c) Payments made directly by someone

else;

(d) Funds from a company (even if you own/control it

);

(e) Funds from a trust (even if you are a beneficiary

);

(f) Funds from a partnership or

LLP;

(g) Crowdfunded or publicly raised

funds;

(h) Funds from litigation funding

arrangements;

(

i

) Employer

contributions;

(j) Contributions from joint account holders.

10.2 When in doubt, disclose. It is always safer to disclose a potential

third party

source than to fail to disclose.

  1. Mandatory Disclosure to Solicitor

11.1 If funds include any

Third Party

Funds, you MUST:

(a) Notify the Solicitor before they accept your

instructions;

(b) Provide complete information about the third

party;

(c) Explain the arrangement (gift, loan, payment

);

(d) Cooperate with additional verification

requirements;

(e) Provide evidence if requested.

  • REQUIRED: Notification must be BEFORE the Solicitor accepts instructions. Disclosure after acceptance may result in the Solicitor being unable to continue.
  1. Information Required

12.1 For Third Party Funds, you must provide:

For Individual Third Parties:

(a) Full name of the third

party;

(b) Relationship to

you;

(c) Address of the third

party;

(d) Date of birth (if required by Solicitor

);

(e) Reason for providing

funds;

(f) Whether gift or

loan;

(g) If loan, repayment

terms;

(h) Third party's source of funds (how they acquired the money).

For Corporate/Entity Third Parties:

(a) Full legal name of

entity;

(b) Registration number (if applicable

);

(c) Registered

address;

(d) Nature of

business;

(e) Relationship to

you;

(f) Directors/officers (if relevant

);

(g) Beneficial owners of the

entity;

(h) Reason for providing

funds;

(

i

) Entity's source of funds.

  1. Timing of Disclosure

13.1 Disclosure must be made:

(a) BEFORE the Solicitor accepts your

instructions;

(b) At the initial enquiry stage if

known;

(c) Immediately if the funding arrangement

changes;

(d) Before any additional

third party

funds are introduced.

13.2 Late disclosure may result in:

(a) Delay while additional checks are

conducted;

(b) The Solicitor being unable to continue

acting;

(c) Wasted costs if the matter cannot

proceed;

(d) Your liability for any losses caused.

  1. Consequences of

Non-Disclosure

14.1 Failure to disclose Third Party Funds may result in:

(a) The Solicitor terminating your

retainer;

(b) The Solicitor being required to file a

SAR;

(c) Delay or failure of your legal

matter;

(d) Your liability for wasted costs and

fees;

(e) Platform account suspension or

termination;

(f) Your indemnity obligations being

triggered;

(g) Potential criminal liability for money laundering offences.

  • Deliberately concealing Third Party Funds is extremely serious and may constitute a criminal offence.

Part D: Solicitor's Aml Obligations​

ℹ Understanding the Solicitor's AML obligations helps you understand why source of funds information is required.

  1. Solicitor's Legal Requirements

15.1 Solicitors are legally required to:

(a) Identify clients (know who you are

);

(b) Verify client identity (check you are who you say

);

(c) Understand the source of funds for the

transaction;

(d) Conduct ongoing monitoring throughout the

relationship;

(e) Report suspicious activity to the

NCA;

(f) Not proceed if CDD cannot be completed.

15.2 These obligations are imposed by:

(a) Money Laundering Regulations

2017;

(b) Proceeds of Crime Act

2002;

(c) Terrorism Act

2000;

(d) SRA Standards and

Regulations;

(e) Legal Sector Affinity Group Guidance.

  1. What Solicitors Must Verify

16.1 For source of funds, Solicitors must understand:

(a) Where the money is coming

from;

(b) How you acquired the

funds;

(c) Whether the explanation is credible and

consistent;

(d) Whether there are any red flags or

concerns;

(e) Whether third parties are involved.

16.2 Solicitors may request evidence such as:

(a) Bank statements showing fund

accumulation;

(b) Payslips or employment

contracts;

(c) Business accounts or tax

returns;

(d) Property sale completion

statements;

(e) Gift letters from third

parties;

(f) Loan

agreements;

(g) Inheritance documentation.

  1. Your Cooperation

17.1 You agree to cooperate fully with the Solicitor's AML requirements by:

(a) Providing all requested information

promptly;

(b) Providing documentary evidence when

requested;

(c) Answering questions about your source of

funds;

(d) Explaining any unusual or complex funding

arrangements;

(e) Not obstructing or delaying the verification process.

17.2 Failure to cooperate may result in the Solicitor being unable to act for you.

  1. Additional Checks for Third Party Funds

18.1 When Third Party Funds are involved, the Solicitor may:

(a) Require identification of the third

party;

(b) Verify the third party's

identity;

(c) Understand the third party's source of

funds;

(d) Conduct CDD on the third

party;

(e) Require the third party to provide information

directly;

(f) Apply Enhanced Due Diligence.

18.2 This is because:

(a) Third party payments are a money laundering red

flag;

(b) The Solicitor must ensure funds are not proceeds of

crime;

(c) LSAG guidance requires scrutiny of third party

payments;

(d) The Solicitor could be liable if they proceed without proper checks.

  1. Right to Decline Instructions

19.1 The Solicitor may decline or terminate your instructions if:

(a) You fail to provide source of funds

information;

(b) You fail to disclose third party

involvement;

(c) The source of funds cannot be

verified;

(d) There are unexplained concerns about the

funds;

(e) You fail to cooperate with verification

requests;

(f) The Solicitor suspects money laundering or criminal activity.

19.2 If the Solicitor declines or terminates for AML reasons:

(a) They may not be able to explain why (tipping off rules

);

(b) You may still be liable for fees

incurred;

(c) You may not be able to recover payments

made;

(d) The Platform is not responsible for this outcome.

Part E: Source of Wealth​

  1. When Source of Wealth is Required

20.1 Source of Wealth (how you accumulated your overall wealth) may be required:

(a) For

high-value

transactions;

(b) Where Enhanced Due Diligence

applies;

(c) If you are a Politically Exposed Person (PEP

);

(d) If there are concerns about your source of

funds;

(e) If your source of funds appears inconsistent with your

profile;

(f) For certain types of legal work (e.g., property transactions).

  1. Information You May Need to Provide

21.1 Source of Wealth information may include:

(a) Employment history and income

levels;

(b) Business ownership and

profits;

(c) Investment history and

returns;

(d) Inheritances

received;

(e) Property ownership and

values;

(f) Pension and retirement

income;

(g) Any other significant sources of wealth.

  1. Your Obligations

22.1 If source of wealth information is required:

(a) You must provide it honestly and

accurately;

(b) You must provide evidence if

requested;

(c) You must explain any significant wealth that is not obvious from your

profile;

(d) Failure to provide this information may prevent the Solicitor acting.

Part F: Ongoing Obligations​

  1. Changes to Funding Source

23.1 If the source of funds changes during your matter:

(a) You must notify the Solicitor

immediately;

(b) You must provide updated source of funds

information;

(c) Additional verification may be

required;

(d) Failure to notify may have serious consequences.

  1. Additional Funds During Matter

24.1 If additional funds are required during your matter:

(a) You must declare the source of additional

funds;

(b) If from a different source, provide new

information;

(c) If Third Party Funds, disclose

immediately;

(d) The Solicitor may need to verify before accepting.

  1. Notification Requirements

25.1 You must notify the Solicitor if:

(a) The source of funds

changes;

(b) Third party involvement is

introduced;

(c) Any information you provided was

incorrect;

(d) Circumstances change that affect your source of

funds;

(e) You receive funds from a new source for the matter.

25.2 Notification must be:

(a) In writing (email is acceptable

);

(b) As soon as

practicable;

(c) Before the changed funds are used if

possible;

(d) Complete and accurate.

Part G: Regulatory Framework​

ℹ This section explains the regulatory background to source of funds requirements.

  1. Money Laundering Regulations 2017

26.1 The MLR 2017 requires Solicitors to:

(a) Conduct Customer Due Diligence including source of funds

verification;

(b) Apply risk-based approach to

AML;

(c) Apply Enhanced Due Diligence where risks are

higher;

(d) Not establish or continue a relationship if CDD cannot be completed.

26.2 Breach of MLR 2017 is a criminal offence with penalties including:

(a) Up to 2 years

imprisonment;

(b) Unlimited

fines;

(c) Regulatory action against the Solicitor.

  1. Proceeds of Crime Act 2002

27.1 Under POCA 2002:

(a) It is an offence to deal with proceeds of

crime;

(b) Solicitors must report suspicions to

NCA;

(c) Failure to report is a criminal

offence;

(d) Maximum penalty is 14 years imprisonment.

27.2 This is why Solicitors must verify source of funds - to ensure they are not handling criminal property.

  1. SRA Requirements

28.1 The SRA requires Solicitors to:

(a) Comply with MLR

2017;

(b) Have AML policies and

procedures;

(c) Conduct appropriate client due

diligence;

(d) Verify source of funds for

transactions;

(e) Report AML failures to the SRA.

28.2 SRA enforcement may include:

(a)

Fines;

(b) Conditions on

practice;

(c) Suspension or striking off.

  1. Law Society Guidance

29.1 The Law Society and Legal Sector Affinity Group provide guidance on:

(a) Source of funds verification

procedures;

(b) Third party payment

scrutiny;

(c) Red flags to watch

for;

(d) Documentation requirements.

29.2 LSAG 2025 specifically addresses third party payments as requiring additional scrutiny.

  1. FCA Consumer Duty

30.1 Where applicable, FCA Consumer Duty requires:

(a) Good customer

outcomes;

(b) Fair treatment of

customers;

(c) Clear communication about

requirements;

(d) Supporting customers to meet compliance requirements.

Part H: Indemnity Provisions​

  • YOU INDEMNIFY THE PLATFORM FOR ALL CLAIMS ARISING FROM YOUR SOURCE OF FUNDS DECLARATIONS AND DISCLOSURES.
  1. General Indemnity

31.1 You agree to indemnify, defend, and hold harmless the Indemnified Parties from and against all Claims and Losses arising out of or in connection with:

(a) Your source of funds

declarations;

(b) Your failure to disclose Third Party

Funds;

(c) False or misleading information about source of

funds;

(d) Your failure to cooperate with verification

requirements;

(e) Any consequences of source of funds

issues;

(f) Any regulatory action arising from your source of

funds;

(g) Any claims by Solicitors relating to source of funds.

  1. Indemnity for False Declarations

32.1 You indemnify the Indemnified Parties against Losses arising from:

(a) False or inaccurate source of funds

declarations;

(b) Misleading or incomplete

declarations;

(c) Deliberate concealment of funding

sources;

(d) Fraudulent

declarations;

(e) Any misrepresentation about your funds.

🛡 INDEMNITY: This includes Losses where the Platform is named in proceedings or investigations due to your false declarations.

  1. Indemnity for

Non-Disclosure

33.1 You indemnify the Indemnified Parties against Losses arising from:

(a) Failure to disclose Third Party

Funds;

(b) Late disclosure of Third Party

Funds;

(c) Incomplete disclosure of third party

arrangements;

(d) Failure to notify the Solicitor of funding

changes;

(e) Any consequences of non-disclosure.

  1. Indemnity for Regulatory Issues

34.1 You indemnify the Indemnified Parties against Losses arising from:

(a) Regulatory investigations relating to your source of

funds;

(b) NCA enquiries or

investigations;

(c) SRA action involving the Platform due to your

funds;

(d) Any criminal investigations relating to your

funds;

(e) Confiscation or freezing orders affecting Platform operations.

  1. Scope of Indemnity

35.1 The indemnities cover:

(a) Direct

losses;

(b) Third party

claims;

(c) Regulatory fines and

penalties;

(d) Investigation

costs;

(e) Legal fees (on an indemnity basis

);

(f) Settlement

amounts;

(g) Reputational damage mitigation.

35.2 Indemnities:

(a) Are NOT

capped;

(b) Survive termination of your Platform

account;

(c) Are primary

obligations;

(d) May be enforced by any Indemnified Party.

Part I: Consequences of Non-compliance​

  1. Solicitor Actions

36.1 If you fail to comply with source of funds requirements, the Solicitor may:

(a) Decline to accept your

instructions;

(b) Terminate your

retainer;

(c) Delay your matter pending

verification;

(d) Require additional

documentation;

(e) Report suspicions to the

NCA;

(f) Seek to recover fees for wasted work.

36.2 The Solicitor may not be able to explain why they are

taking action

if tipping off rules apply.

  1. Platform Actions

37.1 The Platform may:

(a) Suspend your account pending

clarification;

(b) Terminate your account for false

declarations;

(c) Report concerns to appropriate

authorities;

(d) Enforce indemnity obligations against

you;

(e) Decline to process refunds for matters that fail due to source of funds issues.

  1. Regulatory Reporting

38.1 Depending on the circumstances:

(a) The Solicitor may be required to file a SAR with the

NCA;

(b) The matter may be frozen pending NCA

consent;

(c) Information may be shared with law

enforcement;

(d) You may become subject to investigation.

38.2 These are legal requirements on the Solicitor - they are not optional and may occur without warning to you.

Part J: General Provisions​

  1. Warranties

39.1 By using the Platform, you warrant that:

(a) All source of funds information you provide is true and

accurate;

(b) You have disclosed all Third Party

Funds;

(c) You will notify Solicitors of any changes to

funding;

(d) You will cooperate with verification

requirements;

(e) Funds used are not proceeds of

crime;

(f) You are not seeking to launder money or evade

tax;

(g) You understand your indemnity obligations.

  1. Data Protection

40.1 Source of funds information:

(a) Will be processed in accordance with our Privacy

Policy;

(b) Will be shared with the Solicitor for AML

purposes;

(c) May be disclosed to regulators and law

enforcement;

(d) Will be retained as required by law.

  1. Governing Law

41.1 These Terms are governed by English law.

41.2 The courts of England and Wales have exclusive jurisdiction.

SCHEDULE 1: SOURCE OF FUNDS DECLARATION FORM

Source of Funds Declaration

I declare that the funds I will use to pay for legal services:

Question

Response

Are the funds your own? (from your own accounts, earned/saved by you)

☐ Yes ☐ No

Will any funds come from a third party? (gift, loan, payment by another)

☐ Yes ☐ No

If third party funds, have you disclosed this to the Solicitor?

☐ Yes ☐ No ☐ N/A

Primary Source of Funds

Tick all that apply and indicate approximate percentage:

Source

Applies

Approx %

Savings from employment income

☐

%

Business income/profits

☐

%

Sale of property

☐

%

Sale of investments

☐

%

Inheritance

☐

%

Gift from family/friends

☐

%

Loan (bank or other)

☐

%

Pension or retirement funds

☐

%

Compensation/settlement

☐

%

Other (specify below)

☐

%

If Other, please specify: _______________________________________________

Declaration

I declare that the information above is true and accurate. I understand that providing false information may have serious consequences including termination of legal services, regulatory reports, and liability under my indemnity to the Platform.

Signed: _______________________________________________

Name: _______________________________________________

Date: _______________________________________________

SCHEDULE 2: THIRD PARTY FUNDS DISCLOSURE FORM

Third Party Funds Disclosure

  • Complete this form if ANY funds used to pay for legal services are provided by someone other than you.

Third Party Details

Information Required

Response

Third Party Name

Relationship to You

Address

Is Third Party an Individual or Entity?

☐ Individual ☐ Company ☐ Trust ☐ Other

If Entity, Registration Number

Amount Being Provided

£

Is this a Gift or Loan?

☐ Gift ☐ Loan ☐ Other

If Loan, repayment terms

Reason Third Party is providing funds

Third Party's Source of Funds

How did the Third Party acquire the funds they are providing to you?

Declaration

I confirm that I have disclosed this

Third Party

funding arrangement to the Solicitor instructed through the Platform. I understand that the Solicitor may require additional verification of the Third Party.

Signed: _______________________________________________

Name: _______________________________________________

Date: _______________________________________________

Disclosed to Solicitor: ☐ Yes - Date disclosed: _______________

SCHEDULE 3: COMMON SOURCE OF FUNDS CATEGORIES

Category

Description

Typical Evidence

Employment Income

Salary, wages, bonuses saved over time

Payslips, bank statements, P60

Self-Employment

Income from freelance or consulting work

Accounts, tax returns, invoices

Business Profits

Profits from business ownership

Company accounts, dividend records

Property Sale

Proceeds from selling property

Completion statement, bank receipt

Investment Returns

Dividends, interest, capital gains

Investment statements, tax documents

Inheritance

Money inherited from deceased person

Probate documents, executor letter

Gift

Money gifted by another person

Gift letter, donor's source of funds

Family Loan

Loan from family member

Loan agreement, lender's source of funds

Bank Loan

Formal loan from bank/lender

Loan agreement, offer letter

Pension/Retirement

Pension income or lump sum

Pension statements

Compensation

Damages or settlement payment

Court order, settlement agreement

Redundancy

Redundancy payment

Termination letter, payment evidence

Insurance Payout

Insurance claim payment

Insurance documents, payment evidence

Savings

Accumulated savings

Bank statements showing accumulation

SCHEDULE 4: REQUIRED EVIDENCE BY SOURCE TYPE

Source Type

Standard Evidence

Additional Evidence (if requested)

Employment

Payslips, bank statements

Employment contract, P60, employer letter

Business

Company accounts

Tax returns, bank statements, contracts

Property Sale

Completion statement

Sale contract, estate agent confirmation

Investments

Investment statements

Purchase records, tax returns

Inheritance

Grant of probate/LOA

Death certificate, will, executor letter

Gift

Gift letter from donor

Donor's ID, donor's source of funds evidence

Bank Loan

Loan agreement

Facility letter, drawdown confirmation

Family Loan

Loan agreement

Lender's ID, lender's source of funds

Pension

Pension statement

HMRC notification, pension provider letter

Compensation

Settlement agreement

Court order, solicitor confirmation

ℹ The Solicitor may request any of this evidence. Provide it promptly to avoid delays.

SCHEDULE 5: INDEMNITY ACKNOWLEDGMENT

Acknowledgment of Indemnity Obligations - Source of Funds

I acknowledge and confirm that:

Acknowledgment

Confirmed

I must declare the source of funds for my legal services

☐

I must disclose any

Third Party

Funds to the Solicitor

☐

I must provide this information BEFORE the Solicitor accepts instructions

☐

I must provide truthful and accurate information

☐

I must cooperate with the Solicitor's verification requests

☐

I must notify the Solicitor if funding sources change

☐

I indemnify the Platform for claims arising from my source of funds

☐

I indemnify the Platform for false or misleading declarations

☐

I indemnify the Platform for failure to disclose Third Party Funds

☐

The indemnities are NOT capped

☐

The indemnities survive termination of my account

☐

I understand the Solicitor may decline instructions if source of funds cannot be verified

☐

I understand the Solicitor may report suspicions to the NCA

☐

Signed: _______________________________________________

Name: _______________________________________________

Date: _______________________________________________

Document Information​

─────────────────────────────────────

Regulatory Framework

Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 (as amended)

Legal Sector Affinity Group Anti-Money Laundering Guidance 2025

Proceeds of Crime Act 2002

Terrorism Act 2000

Sanctions and Anti-Money Laundering Act 2018

SRA Standards and Regulations 2019 (as amended 2025)

SRA Code of Conduct

Law Society AML Practice Note

FCA Consumer Duty 2023

Contracts (Rights of Third Parties) Act 1999

─────────────────────────────────────

Related Documents

Buyer Terms and Conditions V1.0

Buyer Terms for Individual Buyers V1.0

Buyer Terms for Corporate Legal Departments V1.0

Platform Privacy Policy V1.0

─────────────────────────────────────

Document Version: 1.0

Effective Date: January 2026

Last Updated: January 2026

Next Review: July 2026

─────────────────────────────────────

  • YOU MUST DECLARE YOUR SOURCE OF FUNDS. If funds are not your own, you MUST notify the Solicitor BEFORE they accept your instructions. Failure to do so may prevent your legal matter proceeding. You indemnify the Platform for all issues arising from your source of funds declarations.