Source of Wealth (SOW) requirement – ​​what is it?

Source of Wealth (SOW) requirement – ​​what is it?

What is a Source of Wealth (SOW) requirement? — a question that bank clients and investors often face when withdrawing large sums or opening accounts. Source of Wealth (SOW) translates as "source of state". Unlike source of funds (SOF), which confirms the origin of specific funds, SOW describes the general origin of the client's capital

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What is Source of Wealth (SOW)?

1. Definition Source of Wealth is a documented proof of the origin of the client's wealth as a whole.
2. Difference from SOF. SOF confirms an individual transfer, while SOW covers the entire capital.
3. Regulatory grounds. AMLD5 and AMLD6 require financial institutions in the EU and UK to carry out such checks.
4. For those who need it. SOW is most often requested by wealthy clients when making investments and opening corporate accounts.

When is a SOW request legal?

1. when opening a bank account with large turnovers;
2. when investing in real estate, business or the stock market;
3. for transfers over €100,000;
4. if the client belongs to the PEP (politically exposed person) category.

What documents confirm the Source of Wealth?

1. tax returns for recent years;
2. income certificates, employment contracts;
3. corporate reporting;
4. documents on the sale of a business or shares;
5. documents of inheritance or gift;
6. court decisions (for example, division of property);
7. investment reports and dividend payments.

When do scammers use SOW?

1. a broker or pseudo-bank requires payment for a “SOW check”;
2. the request comes from an unlicensed offshore company;
3. there is no specific list of documents, it is suggested to “buy a certificate”;
4. After submitting documents, new fees appear (“AML fee”, “unlock fee”).

What to do if they require a Source of Wealth?

1. Check the company

Check registration in the FCA, BaFin, CySEC, FINMA registers.

2. Preserve evidence

Correspondence, letters and details for transfer.

3. Prepare documents

Collect tax returns, income statements, and corporate reports.

4. Compose a SOW letter

A letter explaining the origin of the condition and attaching evidence.

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5. Contact lawyers

Jurisprudential verifies the legality of the request and supports the client in interactions with banks.

6. File a complaint

If we're talking about a fraudulent platform, file a complaint with the bank, regulator, and police.

Cases from practice

1. Investor in the EU — The bank requested a SOW for a €500,000 transfer. Lawyers prepared a package of documents, and the funds were unblocked.
2. Client in UK — The broker demanded payment for "SOW clearance." Jurisprudence proved fraud, and the £30,000 was returned.
3. Company in Switzerland — When opening an account, they required a Statement of Work (SOW). The prepared package allowed us to pass the verification process without delays.

Why Choose Jurisprudential

1. Experience working with SOW and SOF documents in international practice.
2. Expertise in AML/KYC procedures of the EU, UK and Switzerland.
3. Protecting clients from fraudulent claims.
4. Individual strategies for private and corporate clients.

Сonclusion

What is a Source of Wealth (SOW) requirement? This is a legal procedure if initiated by a licensed bank or broker under AML/KYC. The check is always free and is aimed at confirming the client's legal status. However, if SOW is used as a pretext for extortion, it is a fraudulent scheme. Jurisprudential helps investors and companies in the EU, UK, and Switzerland prepare SOW documents, undergo due diligence, and protect their assets.