Source of funds vs source of wealth: a practical Jersey guide

Why a bank asks

Banks and other regulated firms in Jersey are expected to understand their customers and the economic background to a relationship or transaction. That is part of customer due diligence and financial-crime prevention; it is not, by itself, a judgement about a customer.

The best response is factual and proportionate. Explain how the money arose, show the relevant path into the account, and answer any follow-up questions through a trusted channel.

The difference in plain English

Source of funds describes the activity or event that produced the particular money being used. It might be salary, pension income, a property sale, an inheritance, business income or the sale of an investment.

Source of wealth is the broader story of how a person accumulated their overall net worth over time. That might include a career, ownership of a company, long-term investing, property holdings or several of those things together. The evidence needed will depend on the relationship and the circumstances.

Build a clear evidence trail

Useful evidence is specific, independent where possible, dated and consistent with the explanation. Depending on the event, that could include a completion statement, employer or pension record, grant of probate, audited accounts, dividend record or investment sale statement.

A thick file is not automatically a clear file. Start with the documents that establish the event, the amount and the movement of money. If an institution needs more, it should tell you what gap remains.

• Use complete documents with the relevant names, dates and amounts visible.
• Keep the original file names and avoid screenshots when a formal statement is available.
• Add a short chronology when the money moved through more than one account or currency.

Explain the story, not just the pages

Documents are easiest to review when the narrative connects them. If proceeds moved through an intermediary account, say so. If a gift or loan is involved, identify the relationship and the terms. If currency conversion changed the number, make the conversion step clear.

Before submitting, check that spellings, dates and amounts match. A small inconsistency can create a large follow-up because the reviewer has to determine whether it is harmless or significant.

A five-minute preparation check

Ask yourself four questions: What generated the money? When did that happen? How did it reach this account? Which independent document supports each step? If your answer can be understood by someone who has never met you, you are usually in a good position to begin the review.