Source of Wealth (SoW)

Where source of funds looks at one payment, source of wealth looks at the whole picture. The firm builds a narrative of how someone came to hold the assets they have, and tests whether it fits their age, career and known circumstances. A founder might show company sale documents and tax returns; an heir, probate papers; an executive, employment history and bonus records. The check is standard for politically exposed persons, high-net-worth private banking clients and other high-risk customers. Staff look for gaps, such as wealth far beyond any plausible income, or vague claims that cannot be documented. Public sources, such as company filings and press, are used to cross-check what the customer says. Approval committees read it to decide whether a client's holdings are believable before any money moves.

A trust company is onboarding a client who says he made his fortune from a logistics business. The relationship manager collects company accounts for ten years, a share sale agreement and tax returns. The figures support about half of the wealth declared. The client gives no clear answer about the rest, and the company declines to take the relationship forward.