Related Terms
DEFINITION
Source of Funds (SoF)
In contrast to source of wealth, source of funds refers specifically to the origin of the money or assets used in a particular transaction or business relationship.
Synonyms
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Acronyms
SoF
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Synonyms
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Acronyms
SoF
Examples
For the large real estate purchase, the bank requested SoF documentation to verify the funds were from the proceeds of a legitimate business sale.
FAQ
In what situations is SoF information required?
SoF should be documented for large, complex or unusual transactions, as well as for high-risk clients.
What documents can be used to verify SoF?
SoF can be evidenced through bank statements, sale agreements, loan documents, payslips, invoices, or receipts.
How does SoF tie into AML transaction monitoring?
Understanding expected SoF helps banks spot deviations in transaction monitoring that could indicate money laundering.
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