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About Source of Funds

About Source of Funds

SoF
Kuna support 4 avatar
Written by Kuna support 4. Updated over a week ago

What does Source of Funds mean?

The term “Source of Funds” (“SoF”) refers to the funds that are being used to fund the specific transaction at hand - that is, the origin of the funds used for the transactions or activities that occur within the business relationship or occasional transaction.

Source of Funds refers to the funds used to fund the specific transaction in hand – i.e., the origin of the funds used for the transactions or activities that occur within the business relationship or occasional transaction. SoF tells us where the money comes from, which can be proven through bank statements, tax returns, company financials, etc. Typically, SoF is requested when establishing a business relationship or performing EDD, and SoF is asked for when there is a need to understand the origin of a transaction.

Why do I need to provide the source of funds?

UAB Kuna Pro is obliged entity according to the Republic of Lithuania Law on the Prevention of Money Laundering and Terrorist Financing.

Due diligence measures must be applied on a risk-based approach, and require enhanced due diligence in certain circumstances.

Due to KYC/AML standards and the requirements of financial regulators, as well as payment providers (for compliance with the same standards), in some cases, users may be required to confirm the source of funds for transactions. This is an additional measure to control the circulation of funds and guarantee financial security for all participants.

What documents are accepted?

Here are some examples of SoF (note, this list is not exhaustive and is given only as an example):

Income category

Documents required

💵 Income from salary

  • Pay slips for the past 3 months and bank statement showing the salary being paid into this bank account;

  • Audited personal tax statement;

  • Income tax declaration.

📃Inheritance

  • Grant of Probate (with a copy of the Will) clearly showing the amount of inheritance and a bank statement showing these funds being deposited into the account;

  • Signed letter from a licensed solicitor or estate trustees on letter-headed paper clearly indicating the amount of inheritance, accompanied by updated proof of the solicitor's regulated status and a bank statement showing these funds being deposited into the account.

🎁Gift/donation

  • Notarized gift/ donation letter and a bank statement showing these funds being deposited into the account;

  • Gift agreement and a bank statement showing these funds being deposited into the account.

👨‍🎓Scholarship

  • Documents confirming received scholarship and a bank statement showing these funds being deposited into the account;

  • Scholarship award letter and a bank statement showing these funds being deposited into the account;

  • Scholarship contract / agreement and a bank statement showing these funds being deposited into the account.

💰Savings/deposits

  • Savings statement;

  • Bank statement.

📑Divorce Settlement

  • Copy of court order clearly indicating the amount of settlement and a bank statement showing these funds being deposited into the account;

  • Letter detailing divorce settlement as well as clearly indicating the amount of settlement and signed by a licensed solicitor on letterheaded paper accompanied by updated proof of solicitor’s regulated status and a bank statement showing these funds being deposited into the account.

🏢Government grants (retirement income, grants for veterans, research grants, etc.)

  • Type of received grant and a bank statement showing these funds being deposited into the account;

  • Documents confirming/ proving received grant and a bank statement showing these funds being deposited into the account.

🧳Company profit/dividends

  • Dividend contract note or equivalent and a bank statement showing these funds being deposited into the account;

  • Copy of latest audited financial statements;

  • Tax declaration form.

🏷️Sales (of property, goods, shares, etc.)

  • Copy of contract of buy/sale/production and a bank statement showing these funds being deposited into the account;

  • Prove of e-shop sale report (screenshot) with the list of items sold and a bank statement showing these funds being deposited into the account;

  • Shipping documents and a bank statement showing these funds being deposited into the account;

  • Proof of delivery and a bank statement showing these funds being deposited into the account;

  • Customs declaration;

  • Audited financial report;

  • Tax report;

  • PayPal statement evidencing the money and a bank statement showing these funds being deposited into the account.

🏦Loan or investment

  • Loan/Investment agreement or other documents confirming the agreement and a bank statement showing these funds being deposited into the account.

⚡Digital Assets (Crypto)

  • Statement from the purchase transaction record

  • Bank statement reflecting the purchase

  • The contract if received as a payment

  • Trading Statements

  • Video of wallet transactions

  • Evidence of mining

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