CONCEPT
Source of funds verification?
What's on this page?The full concept entry as stored in Postgres. Definition, regulatory origin, risk consequence, and any per-jurisdiction overrides and role guidance authored for it. Sources at the bottom are the only citations the AI Generator is allowed to use when producing content about this field.
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What's on this page?The full concept entry as stored in Postgres. Definition, regulatory origin, risk consequence, and any per-jurisdiction overrides and role guidance authored for it. Sources at the bottom are the only citations the AI Generator is allowed to use when producing content about this field.
source-of-funds · domain compliance-aml-kyc · v1
risk · highpublished
Definition
Documentation establishing the origin of the funds being used in a particular transaction or business relationship. Distinct from 'source of wealth', which covers the customer's overall financial position.
Risk consequence
Unverified source of funds is the second-most common AML enforcement finding in EU member states (after PEP failures). For sums above EUR 15,000 or any cash-equivalent, verification is mandatory.
Jurisdiction variants
| Jurisdiction | Override | Note |
|---|---|---|
| LU | — uses base definition | Acceptable documentation includes bank statements, signed sale agreements, salary slips, or inheritance certificates. Verbal declarations are not sufficient under CSSF guidance. |
Role guidance
| Role | Guidance | Permission note |
|---|---|---|
| kyc-analyst | Collect at least one supporting document and cross-check against the declared origin. Mismatches must be flagged — do not 'best-effort' verify. | — |
| compliance-officer | Approve flagged mismatches only with documented rationale. If declared source is third-party funds (e.g. family transfer), the third party becomes subject to KYC themselves. | — |
Workflow hints
| App / module | Current step | Next step | Blockers / deadline |
|---|---|---|---|
elyxen kyc / onboarding | Source of funds verification | Risk scoring | — |
Sources
AMLD5 Art. 30 Directive (EU) 2018/843 — 5th Anti-Money Laundering Directive, Article 30 (Beneficial Ownership Information) https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32018L0843 | EU | v2018 |
FATF R.10 FATF Recommendation 10 — Customer Due Diligence https://www.fatf-gafi.org/en/publications/Fatfrecommendations/Fatf-recommendations.html | global | v2023-update |
Audit
Status
published
Version
1
Reviewed by
DEMO-ONLY (sample content, awaiting domain expert per KE-Q3)
Last reviewed
5/12/2026