The term "Source of Funds" refers to the specific origin of the financial resources that an individual or company uses to carry out a financial transaction. Clearly identifying these funds is mandatory in order to comply with national and international regulations related to financial transparency and anti-money laundering (AML) efforts.

Why is it important?

Accurately identifying the origin of funds helps ensure transaction transparency, demonstrate the legality of funds, and prevent suspicion or complications during the financial process.

What documentation is commonly used to validate the source of funds?

Depending on the specific case, the following types of documentation may be requested:

• Pay stubs, tax returns, or audited financial statements
• Recent bank statements
• Loan or credit agreements
• Property deeds or certificates for the sale of real estate or assets
• Notarized certificates of inheritance or donations
• Invoices or service contracts
• Reports or certifications issued by public accountants
• Corporate resolutions regarding dividend or profit distributions

Other less common but acceptable documents may include:

• Investment certificates or investment account statements
• Notarized reports that support specific transactions
• Court or administrative documents related to compensation or settlements
• Corporate meeting minutes or shareholder resolutions validating capital contributions or distributions

All submitted documentation must be properly supported and include the required signatures. This list is not exhaustive, and based on the documents initially provided, additional documentation may be requested.