Analysis of bank requirements for the Source of Funds

Analysis of bank requirements for the source of funds

In the United Kingdom, opening a bank account or conducting a large financial transaction is often accompanied by a requirement to provide documents confirming the origin of funds — the so-called Source of Funds. This is standard practice in the banking sector to ensure compliance with anti-corruption, tax and AML (anti-money laundering) legislation.

If the documents are not properly completed or not submitted at all, the bank has the right to refuse to open an account, block a payment or even report suspicious activity to the regulator.

In which cases does the bank require confirmation of the origin of funds?

Before making a deposit or money transfer to an account, the bank may request additional documentation. Most often — in such cases:

• You are transferring a large amount from abroad for the first time.
• You are not a UK resident or have a complex tax residency status.
• The source of income is not obvious (e.g. cash deposit, gift, income from cryptocurrency).
• The deposit is made to a newly registered company.
• Your activity or country of origin is on the list of high financial risk.

In such cases, the bank is obliged to ensure that the funds are not of illegal origin and are not related to money laundering.

Typical documents for confirming the Source of Funds

To successfully pass the bank check and avoid delays in transactions, you need to have a prepared and logically structured set of documents. The bank assesses not only the availability of documents, but also their compliance with the declared source of funds, the sequence of money movements, the legality of their receipt, and the clarity of explanations.

The main list of documents most often required by banks includes:

1. Tax returns and certificates from tax authorities — confirming official income in Ukraine or abroad.
2. Purchase and sale agreements (for real estate, cars, securities) — with proof of transfer of funds.
3. Documents on inheritance or donation — notarised certificates, agreements, court decisions.
4. Employment contracts, salary certificates, bonuses — with the company seal and details for verification.
5. Entrepreneur (sole proprietor) reports or corporate contracts — accounts, invoices, acts of work performed.
6. Certificates from foreign banks or brokerage companies — if the funds were received from investment income.
7. Bank statements — confirming the actual receipt of funds into the account.

Documents must be translated into English (preferably with certification by a translator or notary) and comply with banking compliance requirements. All documentation must confirm the unbroken chain of origin of funds — from source to account.

Why it is important to consult a lawyer on banking requirements for the source of deposits

Proper preparation of the package of documents is only part of the success. The bank analyses not only the papers themselves, but also the logic of the origin of the funds, compliance with legislation and the validity of explanations. In many cases, it is legal support that allows you to avoid rejection, freezing of funds or lengthy consideration of your application.

A lawyer performs several important functions:

• Analyses the client's financial situation: determines which sources to indicate and which are better not to use in order to avoid additional questions.
• Forms a recommended list of documents for each specific bank or type of transaction.
• Checks compliance with AML/KYC legislation in the UK and Ukraine.
• Prepares accompanying letters and explanations in English — concisely and legally correctly.
• Represents the client's interests before the bank, assists with formulating responses in case of additional requests.

Support in analysing banking requirements is especially necessary in cases of cross-border transactions, investors, CFC owners, as well as for migrants who are transferring capital outside Ukraine or trying to open an account with a British bank.

Advantages of working with Consultant

Extensive experience in financial matters. We work with British banks and know the requirements of each of them.

Assistance with all types of income sources. Salary, inheritance, cryptocurrency, sale of assets — we will find a solution.

Support for residents and non-residents. Legal support for individuals and legal entities from any jurisdiction.

Quick response. We quickly prepare documents, translations and legal explanations.

Frequently asked questions about bank requirements for sources of funding