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 from salary
🏢Government grants (retirement income, grants for veterans, research grants, etc.)
🏷️Sales (of property, goods, shares, etc.)
🏦Loan or investment
⚡Digital Assets (Crypto)