Source of funds and source of wealth are two different concepts which together provide an understanding of a customer’s background, financial history and how and where their capital has been generated. They are each defined as
Source of Funds – Means the origin of the particular funds or other assets involved in a business relationship or occasional transaction and includes the activity that generated the funds used in the business relationship or occasional transaction, and the means through which the funds were transferred.
Source of Wealth – Means the origin of a customer’s entire body of wealth and includes the total assets of the customer.
Source of funds and source of wealth are key elements in recognising and understanding potential money laundering and terrorism financing (ML/TF) transactions. Capital International as a business and theIsle of Man as a financial jurisdiction want to ensure we play our part in eradicating ML/TF and follow guidance from our regulator (The Isle of ManFinancial Services Authority) as well as global best business practices to achieve this.
In all instances, we will require basic information regarding the outlined source of funds. Please see the below table which details the required information to be provided at outset.
In some circumstances, supporting evidence may be requested in order to verify a client’s outlined source of funds. Please see the below table which outlines the relevant requirements. When source of funds is requested, please note that this will always be required to be submitted as a certified copy of the original.
By providing answers to the below questions, we will be provided with a clear overview of a client’s total wealth and how this has been generated.