Источник средств
Source of Funds
Source of funds (SoF) is the origin of the specific money a client deposits or withdraws in a particular transaction, for example salary, proceeds from a property sale, or a winning.
What is Источник средств (Source of Funds)?
Source of funds (SoF) answers the question of where the money in a given transaction or account came from. It is not the same as source of wealth (SoW), which describes how the client accumulated their overall wealth.
## How it works
A payment service provider (PSP), crypto exchange, or casino operator requests confirmation when risk is elevated or a large deposit is made: a card or bank statement, an income certificate, a sale and purchase agreement, or a declaration of the origin of funds. The check confirms that the document matches the amount, the sender, and the client's profile.
## Where it applies
In KYC and AML procedures during onboarding and ongoing monitoring. In enhanced due diligence (EDD) for high-risk clients, PEPs, large deposits, unusual activity, or transfers from third parties. In fintech and crypto when fiat or crypto funds are converted, and in gambling for large deposits and withdrawals, especially when declared income does not match the turnover.
## What it affects
Without a verified source of funds, a transaction may be delayed, a limit may be imposed, a withdrawal may be rejected, and the account may be blocked. Opaque inflows raise the risk of suspected money laundering and may lead to an internal decision to file a report with the competent authority. For merchants, it affects approval and risk scoring.
## Common mistakes
Confusing SoF with SoW and requesting only one of the two documents. Accepting screenshots without verifying their authenticity. Not recording in the history which documents were received and when. Skipping checks for transfers from third parties and for changes in payment method, such as a deposit made by card belonging to another person.
## Practical minimum
FAQ
How does source of funds differ from source of wealth?
Source of funds relates to the specific money involved in a transaction, while source of wealth relates to how the client built their overall wealth. Checks often require both, but the documents for each are different.
What documents are usually requested?
Most often bank statements, income certificates, property sale agreements, and documents on an inheritance or a winning. The list depends on the provider and jurisdiction.
Does every deposit need to be verified?
Not necessarily. Checks are usually triggered by amount thresholds, risk level, and unusual signals, such as a sharp increase in turnover or transfers from third parties.