How to Transfer Money from Iran to the UK for a Property Deposit

Why this step is different for Iranian buyers

When a buyer in most countries sends a deposit to the UK, the money moves bank to bank in a way that every party recognises. For Iran the position is more complicated. UK solicitors who write about the subject note that transfers to and from Iran are not prohibited as such, but that there are very few direct banking routes, so many people rely on specialist money exchange businesses. (That article dates from 2017, so treat its detail as background and check the current position.)

The key phrase is not prohibited as such. A transfer is lawful when it is done through the right channels, does not involve anyone on a UK sanctions list, and is properly documented. Where people run into trouble is almost always the method, not the nationality.

Because UK banks, lenders and conveyancers have to follow anti-money-laundering rules, they will ask where the money came from and how it moved. If the answer is clean and documented, the process is usually manageable. If it is vague, expect delays, questions, or a refusal.

Use a UK-regulated provider

The first rule is to use a provider that is regulated in the UK. Firms that move money for customers in the UK need to be authorised or registered. In practice that means one of two things:

• An FCA-authorised payment or e-money institution, which you can look up on the FCA Register.
• A money service business supervised by HMRC for anti-money-laundering purposes. HMRC explains who needs to register and how, and keeps a public register.

Before you use any firm, check three things:

1. Look it up on the register. Do not rely on a logo or a claim on its website. Check the exact legal name and the permissions it holds.
2. Ask how the transfer works end to end. A reputable firm will explain how funds reach a UK account, which bank holds them, and what evidence it will give you.
3. Ask what paperwork you receive. You want an itemised record that shows the sender, the amount, the exchange rate, the date and the receiving UK account.

The same Blackstone guide makes a useful practical point: prefer firms that pay out from their own UK business bank account, rather than arrangements where several unrelated people deposit cash or small sums into your account. That is exactly the pattern UK banks flag.

What UK banks and lenders look for

To a UK bank’s monitoring system, certain patterns look unusual regardless of who you are. These are the ones most often mentioned by solicitors who deal with account problems:

• Cash deposits into your account, particularly several in a short period.
• Third-party payments from individuals or companies you have no obvious link to.
• Round-figure transfers split into many smaller ones.
• Payments with no reference or documentation to explain them.

When a bank sees these, it is legally obliged to review the activity. Some customers then find that an account is restricted or closed while the bank asks questions. The money is usually returned, but it can be a stressful and time-consuming experience, and it can wreck a purchase timetable.

A safe sequence for moving a deposit

1. Speak to your broker and your solicitor first. Confirm that the lender will accept funds from this source and by this route, and ask what evidence they will want. Never move the money first and ask afterwards.
2. Gather the origin documents. Collect evidence of how you came to hold the funds: property sale contracts, salary or business records, tax documents, inheritance papers. Our source-of-funds guide lists what to prepare.
3. Choose a regulated provider. Verify them on the FCA or HMRC register, compare the fee and rate, and confirm how they will deliver evidence.
4. Decide the destination. Depending on advice, funds may go to your own UK account or directly to your solicitor’s client account. The solicitor can tell you which suits the transaction.
5. Send a small test, if advised. Some providers and banks are comfortable with a modest first transfer to check the route before the full amount moves.
6. Keep every record. Receipts, rate confirmations, bank statements, emails with the provider. Save them in one folder, in date order.
7. Tell your UK bank if asked. Banks sometimes want to be told about large incoming payments. Answer plainly and supply the paperwork.
8. Allow extra time. Some conveyancers suggest allowing a couple of extra weeks when money comes from overseas. Do not make a non-refundable commitment before the funds have cleared.

Red flags to avoid

Please treat the following as a clear no:

• Anyone who offers to move money “without questions” or without a written record.
• A provider that cannot show it is on the FCA or HMRC register.
• Instructions to have friends, relatives or strangers pay money into your account to “keep amounts small”.
• Requests to pay in cash or to use a personal account that is not in your name.
• Anything that involves a sanctioned person, company or bank. UK sanctions on Iran are active and have been tightened more than once, so look at the current GOV.UK Iran sanctions guidance and the work of the Office of Financial Sanctions Implementation (OFSI).
• Pressure to move quickly because of an exchange-rate move. Rushed, undocumented transfers cause far more damage than a slightly worse rate.

We will never help with anything designed to avoid sanctions or anti-money-laundering checks. Our role is to help you do it cleanly so that the funds are accepted.

Exchange rates, fees and timing

Moving money between currencies means choosing a rate and paying a fee, and the combination varies a lot between providers. When you compare, look at the total you will receive in pounds, not just the headline fee. Ask:

• What rate will be applied, and is it guaranteed at the time you confirm?
• Is there a fixed fee, a margin, or both?
• How long until the funds are in a UK account and available?
• Will you receive written confirmation of the rate used?

Exchange costs are only part of the budget, so see our guide to deposits and stamp duty for Iranian buyers for the rest. Keep that confirmation. A lender or solicitor who sees a pound figure arriving in your account may want to reconcile it to the amount you originally held, and a record of the rate applied makes that easy.

Common situations and what each needs

How you came to hold the money shapes the paperwork you need and the questions you will be asked.

Questions to ask any money transfer provider

1. What is your exact legal name, and where am I able to confirm your authorisation or registration?
2. How will my money reach a UK account, step by step?
3. Will the payment arrive from your own UK business account, in one transfer?
4. What is the total cost: fee, exchange margin and any intermediary charges?
5. What rate will apply, and when is it fixed?
6. How long does the transfer take in practice?
7. What written confirmation will I receive, and what does it show?
8. Will you provide a letter or document confirming the source of the transfer for my solicitor or lender?
9. What happens if funds are delayed or queried by a UK bank?
10. Are there limits on amount, and do you need further documents from me?

Honest providers answer these clearly. Evasion is a warning sign.

If your UK bank restricts your account

It can happen even to people who have done everything correctly. If it does:

1. Stay calm and reply promptly to the bank’s requests. Delays make matters worse.
2. Send the evidence in an organised bundle: the transfer receipts, the funds statement and the origin documents.
3. Ask the bank what it needs and by when, and keep a record of every conversation.
4. Tell your solicitor and broker, because a restricted account can affect a purchase timetable and the lender’s view.
5. Take independent legal advice if the problem is not resolved quickly. A solicitor experienced with account restrictions can advise on your options.

This is one reason to agree the route before moving money, and to keep a separate, clean record for each transfer.

Where 23rd Homes fits in

We do not hold or transfer your money. Our role is practical and preparatory:

• We help you plan the order of steps so lender, solicitor and transfer provider are aligned before money moves.
• We help you assemble the documents that explain the funds.
• We introduce you to FCA-authorised money transfer firms and specialist mortgage brokers who understand Iranian cases.

If you would like us to look at your plan before you send anything, book a free 15-minute call.

Frequently asked questions

This article is general information, written on 11 November 2026. Lender criteria, tax rates and sanctions rules change, so we check the current position with you on your free call.