Source of Funds Guide
This article will explore Source of Funds on Credas. and contains the following information:
Source of Funds
What is Source of Funds?
'Source of Funds' refers to the origin or provenance of money or assets used in particular financial transaction or investment.
All anti-money laundering regulated entities, including Estate Agents and Conveyancers, are required to determine the Source of Funds as part of Customer Due Diligence. The regulations require regulated entities to assess whether the Source of Funds are consistent with their knowledge of the customer, the customer's business and their risk profile.
Source of Funds using Credas
Our solution was designed to easily obtain Source of Funds for property purchasers, using a dynamic funds totalizer, smart financial fact-finds and allows individuals to proof their funds by uploading documents or connecting to their bank using Open Banking. The aim of our Source of Funds to provide you with the information you need to confirm an individuals Source of Funds to meet regulations.
The individual who you have sent the Source of Funds check too, will be required to provide the property purchase price, before then submitting funds totaling the price entered. The individual will be able to select from the below list of funding sources and provide the following information/evidence. They can use as many or as little funding sources as they need, and they can use a funding source multiple times, for example if they have multiple savings account.
| Source | Information Requested | Accepted Evidence |
| Mortgage | Requires the mortgage amount, lender, agreement in principle expiry date and evidence of agreement in principle. | Agreement in principle document upload* |
| Savings | Requires the savings amount and evidence of funds. | Bank statement document upload or Open Banking |
| Gift | Requires the gift amount, confirmation of the giftor's personal details, their relationship to the individual, if the amount is repayable, whether the gift came from outside the UK and evidence of funds. | Bank statement document upload or Open Banking |
| Selling a property | Requires the sale amount, status of the sale and evidence of the sale. | Property sales document upload** |
| Selling an asset | Requires the amount the asset was sold for, the asset type and evidence of the sale. | Asset sales document upload |
| Inheritance | Requires the inheritance amount, evidence in the form of a letter from the solicitor/executor confirming inheritance received and evidence of funds. | Document upload of a letter from the solicitor/executor confirming inheritance and bank statements of the inheritance in their account |
| Lottery or Gambling | Requires the amount, details of the company/institution that paid out the winnings and evidence of the winnings. | Document upload of a winnings receipt/confirmation from the lottery/gambling company |
| Divorce Settlement | Requires the amount from the divorce settlement and a copy of the original/certified copy of the court order. | Document upload of the certified court order*** |
| ISA or LISA | Requires the ISA/LISA amount and evidence of funds. | Bank statement document upload or Open Banking |
*If the individual indicates that they have not yet accrued an agreement in principle, no evidence/document upload will be asked for so they can still proceed with their questionnaire.
**If the individual indicates that the property has not yet been sold/in the process of being sold, no evidence/document upload will be asked for so they can still proceed with their questionnaire.
***If the individual indicates that they do not have a certified court order for their divorce, no evidence/document upload will be asked for so they can still proceed with their questionnaire.
Open Banking
What is Open Banking?
Open Banking is embedded within our Source of Funds check and lets individuals securely share six months worth of their financial data straight to you giving a full breakdown of their account, highlighting any discrepancies for your review. This saves time for both you and the individual, eliminating the need for sharing bank statements over email, and questions back and forth. If you wish, you can also send an Open Banking standalone check to the individual without Source of Funds. To access the standalone Open Banking check, please reach out to our support team.
Open Banking in Source of Funds
Within the Source of Funds check, if the individual chooses one or more of the following funding sources, they will be given the choice to either upload bank statements or connect to their bank using open banking:
-ISA/LISA
-Gift
-Savings
They will be able to connect up to three bank accounts using open banking. Our Open Banking solution connects with 95% of UK banks, including the big 5 - Lloyds, HSBC, Barclays, Natwest and Santander; as well as challenger banks such as Starling, Revolut and Metro. If the individual does not have a UK bank account, they will be unable to use Open Banking.
If an individual connects to their banks via Open Banking, you will be presented with a report containing the following breakdown:
| Section | Description |
| Bank accounts | Summary of all connected accounts, account details and available balance. I multiple accounts have been selected an overall balance will provided. |
| Affordability overview | Analysis of total income vs total expenditure over the past six months showing the difference between the two overall and on a month-by-month basis. |
| Expenditure calculation | Analysis of all expenditure over the past six months will all outbound transactions automatically summarised and categorised including a month-by-month breakdown. |
| Income | Analysis of all inbound transactions and income over the past six months with inbound transactions automatically summarised and categorised as a single six month period. |
| Income calculation | Analysis of all inbound transactions and income over the past six months with inbound transactions automatically summarised and categorised including a month-by-month breakdown allowing you to quickly identify any unusual patterns such as an unaccounted for large transfer. |
| Regular outgoings | Summary of regular direct debit and standing orders associated with the connected account such as mortgage payments, credit cards and insurance. |
| All transactions | Six months full transaction history for each connected |
How do you send a Source of Funds to an individual?
If you wish to send a Source of Funds check to an individual who has already been created on Credas/has already been issued a journey (such as an AML journey), you can follow the steps here.
If you wish to send a Source of Funds check to a new individual who has not yet been created on Credas, please see the steps here. If you do not currently have access to our Source of Funds check, please reach out to our team at sales@credas.com.
Results
Once a Source of Funds check has been completed, you will see the Source of Funds module appear as green for completed on the individuals profile. If the individual has also connected to their bank using Open Banking, you will see a green Open Banking module within the profile to show it has been completed. We will present the Source of Funds questionnaire answers and any document uploads to you, as well as the Open Banking, for your manual review internally. You can learn more about Source of Funds & Open Banking results and how to interrupt them here.
Got any questions?
If you have any questions please reach out to the Credas support team by contacting us here
We are committed to continually improving our support resources for you. We would greatly appreciate your feedback below to help us enhance your experience.
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