What is “Source of Funds” and what documents are accepted?


As a regulated financial services provider, we are occasionally required to collect and verify additional information and/or documents from Smart Valor customers in order to comply with Anti-Money Laundering and Customer Due Diligence laws. Proof of Source of Funds refers to a document that displays the origins of the money or assets used to fund your Smart Valor account. In some cases, such as large Crypto deposits, we may require you to provide us with an explanation and proof of where and when the funds were acquired.


What is considered a proper Source of Funds document?

 

In order for us to accept your Source of Funds documentation the document you send us needs to comply with the following requirements:

  • Must be in one of the following formats: .pdf, .png, .jpeg, .jpg

  • Should be visible in full, with all four corners of the document captured if you are sending us a photo or scan of a physical document.

  • Your full name, address, date of issuing of the document, and dates of transactions should be clearly visible

  • All transaction details should be clear and legible

  • While you are allowed to cover sensitive information (Full card numbers or similar), the inbound transactions (your income) and the outbound transactions (your deposits to Smart Valor) need to be clearly visible

  • Bank statements/payslips / other documents must be relevant to the time period in question and should also reflect your most recent balances


What are the possible sources of funds and what proofs are acceptable for each?

 

  • Employment income / Salary:

A description of your employment situation. The name and type of company you are working for, your work position and professional activity, your tenure in the company, and the amount of income you receive. 

We will require you to provide a recent payslip from your employer (and/or a tax statement declaring your income) as well as a bank statement showing your recent balances.

  • Savings:

A description of the origin of your savings, the name of the previous employer or business and the professional activity, if relevant, the time of building the savings, and the approximate amount of savings.

Copies of relevant bank statements describing the flow of the funds.

  • Property sale:

A description of the origin of your funds related to the property sale, the type of property, its location, time of the sale, and the income received.

A copy of a contract of sale (or a copy of a land registry, a title deed, or a letter from a real estate agent or a lawyer confirming the sale of a  property) as well as a bank statement that displays the proceeds of the sale being deposited.

  • Investment income (Crypto/Stock/Fiat):

A description of the origin of your funds related to the investment proceeds, the type of investment, its location, time of the investment activities, and the income received.

Copies of relevant bank statements describing the flow of the funds.

  • Company sale/shares sale:

A description of the origin of your funds related to the company sale, the name of the company, the industry the company was engaged in, its location, professional activity, time of the business activities and time of sale, and the income received.

Copies of relative statements involved in the sale of the company along with bank statements describing the proceeds of the sale being deposited.

  • Dividents:

A description of the origin of your funds related to the dividend proceeds, the name of the company, its location, industry the company is engaged in, professional activity, the type of dividends, time engaged, and the income received.

Copies of relevant bank statements describing the flow of the funds.

  • Crypto mining:

A description of the origin of the funds used to set up the crypto mining process, if done under a registered business its location, and name. Required will also be the time of the mining activities and proof of the received POW/POS rewards.

Copies of relevant bank statements describing the flow of the funds.

  • Inheritance:

A description of the funds related to the inheritance, the name of the testator and the relationship, the time of the inheritance, and the funds received.

Copies of a testament (or letter from the executor of the will/lawyer) along with a bank statement that displays the deposit of the funds into your account.

  • Gift:

A description of the funds received from the gift, the name of the provider and the relationship with them, the location and receiving time as well as the amount of the funds received. If the gift was not monetary a description of what was received along with when and where it was sold would be required as well.

Copies of an affidavit/letter from the donor explaining the nature of the gift as well as relevant bank statements reflecting the deposit of the funds in your account.

  • Social security:

A description of the type of social security, the name of the payee institution, its location, and the time of receiving the social payments.

Relevant documents that show the type of security being received, fund statements where relevant, along with relevant bank statements reflecting the deposit of the funds in your account.

 

Please be advised that in order to verify the legitimacy of each document it must be as lightly redacted as possible, i.e. in the case of bank statements, we need to clearly see all of the inbound and outbound transactions.