Source of funds and purpose of a transfer
What “source of funds” and “purpose of transfer” mean, which documents prove salary, savings, inheritance, sale proceeds, or business income, and why a vague purpose invites questions.
Source of funds is where the money came from (salary, savings, a sale, inheritance, a loan, business revenue); the purpose is what it is for, and a clear, documented answer keeps a transfer moving.
Key points
- Source of funds is the immediate origin of the money; source of wealth is the broader story of how you accumulated assets.
- Typical evidence: payslips and contracts for salary, historic statements for savings, sale or probate documents for one-off sums, invoices for business income.
- The purpose declaration (tuition, family support, salary, investment, property, goods) should match the amount and pattern.
- Vague labels such as “personal” invite follow-up questions when the amount or frequency is unusual.
What providers ask and why
Under anti-money-laundering rules, a provider may ask where the money came from and what it is for. Source of funds is the immediate origin — salary, savings, business revenue, an asset sale, inheritance, a loan, an investment liquidation, a pension, or a gift. Source of wealth is the broader explanation of how you built your overall assets. The purpose declaration identifies the economic reason: tuition, family support, living expenses, salary, investment, purchase of goods, property acquisition, or loan repayment.
These questions are not an accusation. They let the provider check that the amount, funding source, purpose, and pattern are plausible for you, which is exactly what keeps a legitimate transfer from stalling.
Documents that prove it
Salary: employment contract, payslips, tax withholding record, tax return, and matching bank credits. Savings: historic statements, salary records, investment redemptions, and a clear accumulation trail without unexplained gaps. One-off sums: a sale agreement, settlement statement, or probate/inheritance documents. Business income: invoices, contracts, service descriptions, and platform statements. Revolut’s published guidance, for instance, lists invoices and freelance contracts among acceptable evidence.
Keep these ready before a large or unusual transfer. Providing them promptly is the fastest way to clear a “pending review,” and having a consistent name across your account, residence card, and beneficiary record avoids a separate class of hold-ups.
Who this is for
- Anyone asked to prove where money came from
- People about to send a large or one-off amount
What this is not
- Advice on structuring around a review — that is not appropriate and can be a crime
- Do not let anyone route their money through your account; it can create money-mule, tax, and criminal exposure.