If you are a foreigner planning to buy a property in Uruguay, you may be asked to provide documentation explaining where the money you are using for the purchase comes from.
This is a normal part of the real estate process in Uruguay and does not mean that there is any suspicion about you or your finances.
It is part of Uruguay’s system for preventing money laundering and terrorist financing.
What is SENACLAFT?
SENACLAFT stands for Secretaría Nacional para la Lucha contra el Lavado de Activos y el Financiamiento del Terrorismo — the National Secretariat for the Fight Against Money Laundering and Terrorist Financing.
Uruguay has specific laws and regulations requiring certain professionals and businesses to carry out customer due diligence when they participate in real estate transactions.
The purpose is to make sure that money entering the Uruguayan economy through property transactions comes from a legitimate and identifiable source.
Why do I have to prove where my money comes from?
If you are buying a property, the professionals involved may need to establish the legitimate origin of the funds being used for the transaction.
For example, your money may come from:
- personal savings;
- employment or business income;
- the sale of another property;
- investments;
- an inheritance;
- a gift;
- or a loan.
If the money is held in another country, you may be asked to provide documents such as bank statements, proof of income, tax documents, or documents related to the sale of an asset or an inheritance.
The exact documentation depends on your particular circumstances and the characteristics of the transaction.
An important point for foreign buyers
Having money in a foreign bank account does not necessarily prove its original source.
For example, if you have USD 300,000 in a bank account in the United States, the bank statement proves that you have the money, but additional documentation may be required to explain how those funds were obtained.
This is why it is strongly recommended to prepare the relevant documentation before the property closing.
Who is responsible for these checks?
Both the real estate agency and the Uruguayan notary (escribano) may have legal obligations regarding customer due diligence in a property transaction.
The real estate agency
Real estate agencies are subject to Uruguay’s anti money laundering regulations and must carry out the applicable due diligence procedures.
This can include identifying the parties involved in the transaction and obtaining information about the origin of the funds.
The notary (escribano)
The Uruguayan notary handling the purchase also has legal obligations under the country’s anti-money-laundering legislation.
The notary may therefore request information and documentation concerning the buyer, the transaction and the source of the funds.
These are legal professional obligations, not personal requests from the real estate agent or notary.
Does this apply only to foreigners?
No.
These requirements are not based simply on nationality.
Uruguayan citizens can also be subject to the same controls. However, international transactions and non-resident buyers may require additional documentation because the origin and movement of the funds may involve different countries and financial institutions.
What should you do if you are planning to buy?
If you are planning to purchase property in Uruguay with money held abroad, it is best to start preparing your documentation early.
Speak with your real estate agent and notary before the transaction is finalized and ask what documents they will need in your particular case.
Preparing everything in advance can help avoid delays at the time of signing.
Buying property in Uruguay should be a transparent and well organized process
Uruguay welcomes foreign buyers and investors. The source of funds requirements are part of a broader system designed to provide transparency, legal security and protection for the country’s financial and real estate markets.
Understanding these requirements before you buy can make the process much easier. Requirements may vary depending on the circumstances of each buyer and transaction.
At Welcome to Uruguay, we help foreigners understand how the property buying process works in Uruguay and connect them with the professionals they need to complete their transaction safely and correctly.
