Source of wealth explains how a person or business accumulated its overall assets or net worth over time. It is broader than the source of money used for one transaction.
Which sources can contribute to wealth?
- Employment or professional income
- Business ownership and profits
- Investments and property
- Inheritance or gifts
- Sale of a company or asset
- Other documented lawful activity
Source of wealth vs. source of funds
Source of wealth addresses the origin of total wealth. Source of funds addresses the money used in a particular transaction. A review may require both.
When is it assessed?
It may be reviewed for higher-risk customers, politically exposed persons, private banking relationships or transactions that are unusual relative to the profile.
What evidence may support it?
Tax records, audited statements, ownership documents, sale agreements, probate records and long-term account history may support the narrative. The evidence should be proportionate to the risk.
What makes an assessment credible?
Document the time period, major sources, estimated amounts, ownership and consistency with independent information. Avoid treating a generic statement such as “business income” as complete.
