What documents are accepted as proof of sources of wealth and funds?
Navigating the requirements for proving the legitimacy of funds within financial transactions is crucial in maintaining compliance and transparency. The type of income is generally split into two sources:
Source of wealth based on your occupation or industry: refers to the origin of an individual's overall financial assets, typically accumulated over time through means like employment, business ownership, investments, or inheritance.
Source of fund: specifies where the money for a particular transaction comes from, such as income, savings, loans, or the sale of assets.
Below, we outline the types of documentation accepted as proof for various sources of funds & sources of wealth.
What are the acceptable proofs of wealth based on your occupation or industry?
Source of wealth | Source of wealth proof type |
|---|---|
Employment income Recreation, tourism and hospitality Business and administration Farming and agriculture Teaching, research and academia Mining and energy Law and government Healthcare Tradecraft, construction, and manufacturing Real estate Retail | Paystubs (most recent) Tax returns (most recent) Bank statement (past 3 months worth) or bank letter showing salary earnings Employment verification letter that states position, date and salary Latest audited account statement or tax declaration [*Only applicable for self-employed] |
Investments | Bank statement (past 3 months of bank statements) or letter from bank/brokerage confirming assets under management Bank statement (past 3 months worth) or proof of balance from a crypto exchange |
Business ownership | Proof of business ownership, share registry, and/or equity statement Company tax returns (most recent) Audited financials (most recent) showing company profits, dividends, and/or bonuses |
Sale of assets (real estate, business, shareholding, etc.) | Copy of sales contract stating amount and receipt of money/proceeds Audited financials (most recent) |
Inheritance or gift | Will or grant of probate Letter from the donor explaining the reason for the gift, amount, and the source of the donor's wealth Bank statement showing receipt of funds/deposits from donor Court order for divorce and alimony/awards (monetary, property, etc.) |
Student | Paystubs (2x most recent) Tax returns (most recent) Employment verification letter from part-time employer or internship that states position, date, and salary Bank statement (past 3 months worth) or bank letter showing salary earnings |
What are the acceptable proofs for the source of funds?
Source of funds | Source of funds proof type |
|---|---|
Salary | Paystubs (most recent) Tax returns (most recent) Bank statement (past 3 months worth) or bank letter showing salary earnings Employment verification letter that states position, date and salary |
Sale of assets (real estate, business, shareholding, etc.) | Copy of sales contract stating amount and receipt of money/proceeds Audited financials (most recent) |
Business profits | Audited financials (most recent) Bank statements (past 3 months worth) from the business account Company tax returns (most recent) Compliance report issued by an independent third party Proof of business ownership, share registry, and/or equity statement |
Inheritance or gift | Will or grant of probate Letter from the donor explaining the reason for the gift, amount, and the source of the donor's wealth Bank statement showing receipt of funds/deposits from donor Court order for divorce and alimony/awards (monetary, property, etc.) |
Funding from a financial institution | Bank statement showing money received from a financial institution Proof of a financial agreement with a financial institution (e.g. Copy of loan agreement) |
Funding from decentralized finance (obtaining capital/returns through blockchain-based financial platforms) | Statements from an exchange (past 3 months worth) Bank statement showing receipt of funds from exchange Transaction receipts from decentralized exchanges showing funds swapped/obtained |
Personal savings | Tax returns showing previous income (most recent) Employment verification letter that states position, date and salary Will or grant of probate Letter from the donor explaining the reason for the gift, amount, and the source of the donor's wealth Court order for divorce and alimony/awards (monetary, property, etc.) |