Navigating financial compliance requires transparency about the origins of your funds. Understanding Source of Funds (SoF) and Source of Wealth (SoW) is essential for regulated transactions. Here’s a breakdown:
- Source of Funds (SoF): Identifies the immediate origin of money for a specific transaction (e.g., salary, savings, or asset sales).
- Source of Wealth (SoW): Traces the broader accumulation of assets over time (e.g., business profits, investments, or inheritance).
Below, we outline accepted documentation for both categories and explain why they’re required.
Why Proof of SoF and SoW Matters
Regulated financial institutions must verify fund legitimacy to combat fraud and meet anti-money laundering (AML) standards. Providing proof ensures:
- Compliance with global financial regulations.
- Security by preventing illicit fund flows.
- Trust through transparent financial practices.
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How to Submit Documents
Follow these steps for seamless verification:
- Update your app to the latest version.
Ensure document clarity:
- Full visibility of all content (no cropped sections).
- Accurate, current details matching your income/business.
- Legible amounts and dates.
Accepted Proof Documents
Salary
| Document Type | Requirements |
|--------------|-------------|
| Payslip | Issued within 3 months |
| Bank Statement | Shows salary deposits (past 3 months) |
| Tax Document | Reflects employment income (past 12 months) |
👉 Explore salary verification tips
Business Ownership
- Bank statements (3 months of income payments).
- Tax documents (annual business income).
- Accountant letters confirming ownership.
Investment Returns
- Brokerage statements (3-month validity).
- Retirement account summaries.
Crypto Assets
- Exchange statements (e.g., OKX, Binance) showing wallet addresses.
- Tax records for crypto sales.
Inheritance/Gifts
- Certified wills or probate documents.
- Notarized gift letters.
FAQ Section
Q: Why is SoW broader than SoF?
A: SoW covers lifetime wealth accumulation, while SoF pinpoints transaction-specific funds.
Q: Can I use expired documents?
A: No. Most proofs must be issued within 3–12 months.
Q: What if my income source isn’t listed?
A: Contact support with alternative proofs (e.g., contracts or invoices).
Key Takeaways
- Keep documents current and legible.
- Match details to your declared income/wealth.
- FAQs and anchor texts enhance clarity and engagement.
For further guidance, consult your financial advisor or institutional policies.