Source of wealth
SoW
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How a person's total wealth came about, for example through entrepreneurship, inheritance or employment.
It is distinct from the source of funds: where the specific assets used in a relationship come from. Where the risk is higher, both must be clarified and evidenced.
In practice
A good source-of-wealth record fits on one page: it starts from today's wealth, lists the main sources in chronological order with amounts and refers to the supporting evidence – sale contracts, inheritance documents, tax assessments. Gaps are named openly and supported by independent sources rather than left out. Reviewers accept gaps more readily than contradictions.
Distinctions and common mistakes
Source of wealth is an explanation, not a list of documents. A common mistake is to collect statements and contracts without showing how they add up to the current wealth – amounts, dates and taxes must be consistent.
Relevant in: Switzerland · Germany · Austria · Liechtenstein · EU-wide
Related terms
- Source of funds
- The origin of the specific assets brought into a business relationship or transaction.
- Enhanced due diligence
- Additional measures where the money-laundering risk is higher, for example for PEPs, high-risk countries or unusually complex structures.
Mentioned in these guides
- The risk-based approach in a family officeHow the risk-based approach under Swiss, German and Austrian AML law and the FATF works: risk factors, risk classes, graduated due diligence and documentation.
- Enhanced due diligence in practiceWhen enhanced due diligence applies and what to do in practice: PEPs, high-risk countries, complex structures, senior management approval, source of wealth.
- The KYC process in a family office: from onboarding to periodic reviewThe full KYC process in a family office: pre-screening, identification, risk rating, approval, ongoing monitoring, event reviews, periodic review and exit.
- Evidencing source of wealth: the evidence matrixWhich documents evidence the source of wealth and funds – by source: earnings, sale of a business, inheritance, gift, real estate, investment income, crypto.
- Building the risk profile of a business relationshipStep by step to a robust risk profile: business profile, risk factors, weighting, reasoning and the triggers for a reassessment in a family office.
- The KYC file: structure, contents, auditabilityHow an audit-proof KYC file is structured in a family office: outline, mandatory contents, keeping it current, retention periods and typical audit gaps.
- PEPs: family members and close associatesWho counts as a family member or close associate of a politically exposed person, how long the status lasts and what it means for due diligence.
- Precious metals in a family office: custody, valuation, reportingHow family offices hold, value and report gold and other precious metals: physical or securitised, allocated or unallocated, and VAT treatment.