What is a "Source of Funds" check?

We offer you the ability to virtually invest in local SME’s and make money transfers.
How can we differentiate, if the money passing through, is clean or dirty?
We’re obviously committed at every step of the way to halting fraud, money laundering, and other financial crime at its source, and preventing our platform from being used in this way. We do this by following the money.
Once money has entered our platform, it’s easy to track it from there. However, determining where it originally comes from is another story. This is where we employ a “Source of Funds” check.
What makes a Source of Funds check important?‍️ ☝️
While ‘source of funds check’ (SOF) may sound overly legalistic, this is just the terminology used for providing proof of money’s legitimacy. Whether the money comes from salary, capital gains, business profits, or bank loan – all legitimate source of money have some way to prove their origin.
Of course, your privacy is important to us, too – we’re not asking for your information just to store it. Source of Funds checks play a much more important role than simple data collection:
✅ They allow us to verify the identities of the people performing transactions;
✅ They protect our users from fraud and other financial crimes;
✅ They are required to be in compliance with financial regulations at most levels, so that we can stay a part of the FinTech ecosystem.
When does a Source of Funds check take place? 🤔
Our compliance department performs SOF checks and is responsible for all of the financial investigations and regulation compliance issues that take place on our platform. As a leader in FinTech, we use state-of-the-art automated systems to indicate, when and how a Source of Funds check should take place. These can be user behavior-triggered or through another set of undisclosed criteria.
If we need to do a SOF check on your account, you’ll receive a notification. Once you’ve been notified, you can carry out the requirements by providing an official document, which confirms the source of your funds. Bank statements, loan agreements, personal asset sale documents, paystubs, and other such documentation are all accepted. You can of course be in contact with our compliance team to confirm any details or ask any questions that you may have.
Should I be worried about anything during this process? 🔎
You generally won’t have to worry about anything on your end – as mentioned, we’ll simply notify you of what’s required when it’s required.
However, if you are performing any significant transfers or performing high trade volumes, it may be a good idea to submit your SOF in advance, to avoid triggering our automated compliance framework.
To do this, you can contact our compliance support team and provide them with the documents directly. Someone from the team will review your documents, and a flag will be placed on your account, to ensure no future SOF checks are triggered.
Published: 29 July 2022