What is a source of funds document?
A Source of funds document refers to the origin of the funds involved in the business relationship or a particular transaction. We need to understand where the source of the funds come from that you are paying with - for example is it from a salary, your business income, sale of assets, a loan, etc.
Why do we ask for a source of funds document?
As a regulated financial institution, we must follow “know your customer” guidelines and adhere to the regulatory environment.
Based on your individual situation, the source of fund document could be any one of the following:
- Bank statement - salary payments from your employer should be clearly visible in the transaction history
- Salary payslip
- Tax return
- Employment contract
- Latest accounts or tax declaration if self-employed
- Bank statement - the source of incoming must be clearly visible e.g. salary, annuity, and the amount of savings is growing in the bank account over time.
Sale of assets (e.g. a car, real estate)
- Bank statement showing incoming payment from the sale of goods or assets during a particular period.
- Loan agreement between you and the lender
- A copy of the letter from the executors stating how much you are being paid as a beneficiary and a copy of your bank statement showing the money being received from the solicitor/executor’s bank account
Gift from a relative
- Bank statement which shows the incoming payment from the relative making the gift. The person making the gift will also have to provide the source of funds in the same manner.
- Statement from investment account with transaction receipt/confirmation
- Copy of contract
- Shareholder certificate
- Copy of latest audited financial statement
- Bank statement showing income from dividend distribution
- Tax declaration
If you have any questions please contact us at email@example.com