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Why Do We Ask for Your Source of Funds and Source of Wealth?

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by Samantha

Remsea Assistant


At our company, Know Your Customer (KYC) verification is an essential process that helps us comply with regulations and protect everyone from illegal activities like money laundering and terrorism financing. As part of this process, we may ask you for details about your Source of Funds (SoF) and Source of Wealth (SoW).


  • Source of Funds (SoF)     is simply where the money you’re sending comes from—whether it’s your salary, business income, or money transferred by family.


  • Source of Wealth (SoW) refers to how you’ve built your overall wealth over time. This could include things like your income from employment, investments, business success, or inheritance.




Why Do We Need This Information?


  1. Preventing Money Laundering:     We ask for these details to ensure that the funds you're sending are clean and not connected to illegal activities like money laundering.


  2. Regulatory Compliance: We have to follow financial regulations that require us to verify that the funds being transferred are legitimate. This helps us stay compliant with anti-money laundering (AML) laws.


  3. Building Trust and Transparency: By ensuring the legitimacy of your financial activities, we create a safer, more trustworthy environment for everyone involved.


  4. Risk Management: Understanding where your funds come from and how you’ve accumulated wealth helps us assess and minimize the risk of fraud or illegal activities.


  5. Preventing Terrorism Financing: We do this to ensure that your funds aren’t being used to support terrorism or other illegal causes.




What Information Might We Ask For?


You might need to provide:


  • Proof of income (payslips, tax returns, etc.)


  • Bank statements showing where your funds come from


  • Investment records


  • Documents proving the sale of assets or inheritance




What Happens If You Don’t Provide This Information?


If you’re unable to provide the necessary details, we may be unable to proceed with the transaction request or provide services.


We understand that providing your Source of Funds and Source of Wealth information may require some effort, but it’s a vital part of maintaining a secure and transparent service. This process helps us comply with regulations, prevent financial crimes, and ensure that our services are used for legitimate purposes. We appreciate your understanding and cooperation as we work together to create a safe and trustworthy environment for all.


We appreciate your understanding and cooperation as we work together to create a safe and trustworthy environment for all.



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