What is Source of Funds / Wealth (SoF/W)?

LSAG guidance states:

"Source of Funds refers to the funds that are being used to fund the specific transaction in hand – i.e., the origin of the funds used for the transactions or activities that occur within the business relationship or occasional transaction. The question you are seeking to answer should not simply be, “where did the money for the transaction come from,” but also “how and from where did the client get the money for this transaction or business relationship. It is not enough to know the money came from a UK bank account."

Thus, Source of Funds means establishing the provenance of the particular funds for use in a transaction. This includes the remitting account details, but also an understanding of the activity that generated those specific funds, for example, savings from employment or inheritance.

Why is NearPay requesting the Source of Funds/Wealth?

A Source of funds/wealth (SoF/W) document along with the supporting documentation explains where the funds used for the deposit originated.

NearPay has a regulatory requirement to collect the following information and to collect documentary evidence to support the source of any deposit (fiat & crypto).

And therefore reserves the right to request proof of source of funds for clients depositing or withdrawing cash.

NearPay wants to make sure that the funds we’re interacting with and that we are processing belong to our clients and them only, and do not pass through as part of a criminal money-laundering scheme. This is a question of the safety for our service and our clients — not “client evaluation” for possible methods of making money on it.

How to fill the Source of Funds declaration?

We usually attach the SoF document to the email/chat message along with the details. But, all in all, the algorithm is rather simple.

You can download the form, fill it in using Adobe or any other applicable document redacting programme, add your digital signature and send back to us the finalised document along with the supporting documentation.

Alternatively, you can print out the downloaded SoF document, fill it in by hand and send us a photo of the document via email or the live chat on the website.

What do I need to know when filling the SoF/W?

In order to make this process much easier for the end-user, we wanted to create this guide and explain the most important parts.

For the person filling the SoF/W in, it's crucial to provide all the essential information requested in the form, answer all the questions and add supporting documentation to the form.

The list of documents acceptable as the supporting ones is provided on the second page of the Source of Funds form.

Still have questions left? Please don't hesitate to contact us at [email protected] or via chat.

Did this answer your question?