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What Are Source of Funds and Source of Wealth?

What Are Source of Funds and Source of Wealth?

2023-10-20 03:16

What are Source of Funds and Source of Wealth?

Source of Wealth (SoW) is where your wealth (money or assets) originated from. It’s the root of origin of your financial resources, the activities that generated or significantly contributed to your overall net-worth.
For example, your Source of Wealth could be your salary, an inheritance you received, a business you’ve built, or investments that have grown in value.
Source of Fund (SoF) specifically refers to the origin or the place where your particular funds being used comes from. In many cases, they are interconnected with your Source of Wealth. This is because the Source of Fund often reflects the use/movement of the wealth generated from a particular source.
For example, your Source of Fund is your bank account where you hold your personal savings. The funds in your bank account come from your salary, which is your Source of Wealth.

Why do I need to provide proof for Source of Funds and Source of Wealth to Binance?

To ensure users' account safety and security, Binance is committed to complying with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations. In our continuous efforts to fulfill regulatory obligations, we may need to gather additional information and supporting documents related to users’ Source of Funds (SoF) and Source of Wealth (SoW) in certain instances.

Acceptable documents for Source of Funds and/or Source of Wealth

Below is a non-exhaustive list of acceptable documents. Click to expand each box to view more details.

Acceptable Source of Funds documents

Please expand the sections below based on your Source of Wealth or Source of Fund type to view more details. Uploading the correct documents will help to expedite the verification process.
  • Recent payslips (for at least the last 3 months);
  • Bank statement (showing transaction history with payroll details for at least the last 3 months);
  • Employment contract that outlines salary and bonus terms;
  • Income tax return for the latest fiscal year.
Note: The document should be issued in the name of the person(s) of interest (UBO or shareholder).
  • Personal savings account bank statement (showing transaction history of self-explanatory deposits and savings over time).
Note: Personal savings are the accumulated wealth itself, not a method or means of acquiring wealth. The document provided should be able to articulate how that wealth was generated or accumulated. The document should be issued in the name of the person(s) of interest (UBO, Shareholder).
  • Loan agreement (detailing the terms, conditions, and amounts);
  • Bank statement (showing the transaction history of the received funds from the business loan).
Note: The document should be issued in the name of the company or person(s) of interest (UBO or shareholder).
  • Debenture agreement (detailing the terms and conditions);
  • Bank statement (showing the transaction history of the received funds from the issuance of debentures).
Note: The document should be issued in the name of the company or person(s) of interest (UBO or shareholder).
  • Investor agreement or contract (detailing the terms, conditions, and investment terms agreed upon);
  • List of investor's purchases of shares;
  • Company's bank statement (showing the transaction history of the incoming funds from investors).
Note: The document should be issued in the name of the company.
  • Latest financial statement/annual report;
  • Personal tax return (detailing the report of dividends and capital gains from sale of shares);
  • Personal brokerage account statement (showing share transactions and capital gains from sale of shares, etc.).
Note: The document should be issued in the name of the company.
  • Bank statement (showing the transaction history of the received dividend deposits/income).
Note: The document should be issued in the name of the company or person(s) of interest (UBO or shareholder).
  • Latest financial statement/annual report.
Note: The document must confirm the profit of the company in its latest fiscal year.
  • Sales agreement or contract (outlining the terms, conditions, and sale price);
  • Deed of sale or title transfer;
  • Bank statement (showing the transaction history of the received funds from the sale proceed);
  • Tax records (showing the property or capital gains taxes paid on the sale, if any).
Note: The document should be issued in the name of the company or person(s) of interest (UBO or shareholder).
  • Leaseback agreement (outlining the terms, conditions, and financial details of the transaction);
  • Bank statement (showing the transaction history of the received funds from the leaseback transaction).
Note: The document should be issued in the name of the company or person(s) of interest (UBO or shareholder).
  • Bank statement (showing the transaction history of the received funds resulting from the inheritance);
  • Last will and testament (outlining the distribution of assets and property in accordance with the deceased person’s wishes);
  • Probate documents;
  • Asset or property transfer records (confirming the transfer of ownership of specific assets or properties from the deceased to the heirs).
Note: The document should be issued in/containing the name of the company or person(s) of interest (UBO or shareholder).
  • Deed of gift (specifying the donor, recipient, and details of the gifted asset or funds);
  • Bank statement (showing the transaction history of the gifted funds);
  • Donor affidavit (attesting to the source of the gifted funds and their intent to provide the gift).
Note: The document should be issued in the name of the company or person(s) of interest (UBO or shareholder).
  • Grant award letters (official letters or notification from government agencies, institutions, etc., announcing the approval of the grant and grant amount);
  • Grant agreements (outlining the terms and conditions of the grant, purpose, duration, etc.);
  • Bank statement (showing the transaction history of the received grant).
Note: The document should be issued in the name of the company or person(s) of interest (UBO or shareholder).
  • Bank statement (showing the transaction history of the received pension deposits);
  • Retirement account statements (indicating the source of wealth, contributions, and subsequent pension distributions);
  • Pension award letter/document (statements from the pension administrator, detailing the accumulated pension funds and periodic payment amount).
Note: The document should be issued in the name of the company or person(s) of interest (UBO or shareholder).
  • Court orders or judgements (specifying the details of legal ruling, or award that includes the amount granted);
  • Receipts of legal settlement payments (receipts or records of payments received).
Note: The document should be issued in the name of the company or person(s) of interest (UBO or shareholder).
  • Bank statement (showing transaction history of received funds from gambling winnings);
  • Tax returns (detailing the related income tax payments of those gambling winnings).
Note: The document should be issued in the name of the person(s) of interest (UBO or shareholder).

Acceptable Source of Wealth documents

Please expand the sections below based on your Source of Wealth or Source of Fund type to view more details. Uploading the correct documents will help to expedite the verification process.
  • Company’s business bank statement (showing transaction history of funds received from customers);
  • Sales invoices and receipts (showing details of products/services rendered and the corresponding amounts);
  • Company’s latest annual report/financial statements;
  • Contracts and agreements (outlining the terms and payments for products/services provided to customers).
Note: The document should be issued in the name of the company.
  • Bank statement (showing transaction history of funds that originate from investment activities; returns on investments, dividends or interest payments, etc.);
  • Latest financial statement;
  • Investment/Brokerage account statement (detailing the investments held; a snapshot of the portfolio’s composition and performance).
Note: The document should be issued in the name of the company or person(s) of interest (UBO or shareholder).
  • Investor agreements or contracts (detailing the terms, conditions and investment terms agreed upon);
  • List of investors’ purchases of shares;
  • Company's bank statement (showing the transaction history of the incoming funds from investors).
Note: The document should be issued in the name of the company.
  • Family wealth statement (prepared by family offices that outlines the family’s overall wealth that includes investments, properties, and other assets, etc.);
  • Bank statement (showing the transaction history of the received funds resulting from the inheritance);
  • Last will and testament (outlining the distribution of assets and property in accordance with deceased person’s wishes);
  • Asset or property transfer records (confirming the transfer of ownership of specific assets or properties from the deceased to the heirs).
Note: The document should be issued in the name of the company or person(s) of interest (UBO or shareholder).

Unacceptable documents for Source of Funds and/or Source of Wealth

These are typically documents that do not correspond with the information you've declared or do not clearly demonstrate the origin of your wealth or funds. It will be reviewed on a case-by-case basis.