Source of funds vs source of wealth
Source of funds is where the money in a specific payment or business relationship comes from. Source of wealth is how a person or company built up its total assets over time. Account providers check source of funds routinely, and ask about source of wealth when the risk is higher, for example when a beneficial owner is a politically exposed person.
Source of funds vs source of wealth
| Source of funds | Source of wealth | |
|---|---|---|
| The question | Where did this money come from? | How did this person or company become this wealthy? |
| Scope | One payment, or the funds moving through an account | Total assets, built up over years |
| Typical evidence | Invoices, contracts, statements showing the money arriving | Sale of a business, dividends, salary history, inheritance, investment statements |
| When it's asked for | Onboarding, and large or unexpected payments | Enhanced due diligence on higher-risk relationships |
When a provider asks for each
Source of funds comes up at onboarding, when the provider asks where the first deposits will come from, and again whenever a payment doesn't fit the expected pattern: a large transaction, a new counterparty or an unusual country.Source of wealth belongs to enhanced due diligence. AML rules require it in higher-risk situations, including relationships with politically exposed persons, links to high-risk third countries and complex or unusually large transactions with no obvious purpose. For a company, the question is usually asked about its ultimate beneficial owners rather than the company itself.Evidence that works for a business
| Where the money comes from | Evidence that usually satisfies the check |
|---|---|
| Trading revenue | Invoices and contracts matched to incoming payments |
| Investment from shareholders | Shareholder or subscription agreement, plus the investor's statement showing the transfer |
| A loan | Loan agreement and drawdown confirmation |
| Sale of an asset or business | Sale agreement and completion statement |
| Funding from another group company | Intercompany agreement and group accounts |
| A UBO's personal wealth | Sale documents for a previous business, dividend or salary records, investment statements, a will or probate document |
Funds that come from crypto activity
When euros in a business account come from selling crypto-assets, the provider needs the trail from the exchange to the account: statements from the exchange account held in the company's name, the withdrawal records, and the matching incoming transfer. The exchange's own licence matters too. Crypto-asset businesses should also read VASP onboarding.FAQ
Usually not on its own. It shows that money arrived, not where it came from or why, so providers ask for the underlying document as well: the invoice, contract or agreement.
Providers have to monitor relationships on an ongoing basis. A payment that's larger or different from what you declared at onboarding means they have to check it before or after it goes through.
Not always. It's an enhanced due diligence measure, so it's asked for when the relationship is higher risk, for example when a UBO is a politically exposed person.
Related terms and sources
Know your business (KYB) · Ultimate beneficial owner (UBO) · Risk-based approach · High-risk third country · Transaction monitoring · Debanking · Browse the full glossary
Last reviewed October 21, 2026Disclaimer
This publication is provided for general information purposes and does not constitute legal, tax, or other professional advice from Narvi Payments Oy Ab or its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
This publication is provided for general information purposes and does not constitute legal, tax, or other professional advice from Narvi Payments Oy Ab or its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
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