Find out what it means when you’ve been asked for proof of your source of funds and source of wealth by a business you’re a customer of.
Why we regulate some businesses
We regulate some businesses to combat money laundering, terrorism financing and proliferation financing. As part of this regulation, when you’re a customer of a regulated business (such as real estate, conveyancing, legal professionals, accountants and financial advisers) they may need to establish your source of funds and source of wealth. This is part of their customer due diligence obligations.
There are consequences for regulated businesses if they don’t verify this information.
Learn more about who and what we regulate.
Why you may be asked for source of funds and source of wealth
A business may ask for proof of your source of funds and source of wealth to determine that your funds come from a legitimate source. This helps us to combat financial crimes that enable serious criminal activity, such as:
- child exploitation
- drug and sex trafficking
- scams
- terrorism.
Source of funds
This is how and where you got the funds for a specific transaction. Examples of source of funds for a transaction include:
- salary and wages
- business income
- dividends and investment income
- proceeds from sales of real estate or personal assets
- gifts or inheritance.
This means how the money was originally earned or obtained for a specific transaction. It doesn’t refer to the account or place the money was transferred from.
Examples of proof of source of funds
Examples of acceptable evidence include:
- reliable and independent online sources such as government databases and credible media reporting
- a signed letter from your accountant confirming your source of funds
- a payslip summary or employer letter confirming employment and salary details
- a letter from the executor of an estate confirming the distribution of assets to you as inheritance
- a copy of the sale record or title deed from the sale of property.
Source of wealth
This is where your entire wealth and assets come from. This can be accumulated over time from a range of sources. For example, funds from salary, funds from business or commercial activities, returns from investments and inheritance.
If a business needs to know your source of wealth, they may ask you to provide documents or other forms of evidence on how you acquired your overall wealth and assets.
Examples of proof of source of wealth
Examples of acceptable evidence include:
- a signed letter from your accountant confirming your sources of wealth
- pay summaries from current and past employers that show wages accumulated over time
- a letter from the executor of an estate confirming the distribution of assets to you as inheritance
- a copy of the sale record or title deed from the sale of property.
Your privacy
The information you give these businesses protected under the Privacy Act 1988.
Related pages
This guidance sets out how we interpret certain Australian legislation, along with associated Rules and regulations. Australian courts are ultimately responsible for interpreting these laws and determining if any provisions of these laws are contravened.
The examples and scenarios in this guidance are meant to help explain our interpretation of these laws. They’re not exhaustive or meant to cover every possible scenario.
This guidance provides general information and isn't a substitute for legal advice. This guidance avoids legal language wherever possible and it might include generalisations about the application of the law. Some provisions of the law referred to have exceptions or important qualifications. In most cases your particular circumstances must be taken into account when determining how the law applies to you.