What is source of wealth?
Source of wealth (SoW) refers to the origin of a customer's total accumulated wealth, as distinct from the source of specific transaction funds. Understanding source of wealth is particularly important in EDD for PEPs and high-net-worth individuals, requiring evidence of how the customer built their overall financial position.
Verifying source of wealth
SoW verification may involve reviewing employment history, business ownership records, inheritance documentation, investment portfolios, or property ownership. For legal professionals and accountants handling high-value transactions, SoW checks are a critical component of the risk-based approach.
Related terms
- Source of Funds - specific transaction funds
- PEP - key trigger for SoW verification
- EDD - the enhanced process requiring SoW