Once you’ve onboarded a brand new client, the next steps are essential in ensuring you can fully identify and verify an individual or business’s information. The due diligence process is critical for lawyers, solicitors, conveyancers, and estate agents as they must not only fully clarify the accuracy of an individual or business information but also mitigate the potential harm and risk they could pose to their business.

Source of Funds Check – A Must in the Due Diligence Process

Completing due diligence will flag any concerns and confirm the legitimacy of the information presented to you. As you know, one of the most critical checks within the due diligence process is verifying an individual or business’s source of funds. The source of funds check is an essential element of the process, given the risk of working with illicit funds.

The purpose of the source of funds checks is to limit opportunities for criminals to use criminal property and ultimately mitigate against money laundering and financial crime. This is a mandatory check within the due diligence process, and not completing source of funds checks effectively can have serious consequences.

Our latest article delves into source of funds and how our source of funds checks are helping law firms complete due diligence to verify their clients and could help your due diligence processes.

Why You Must Complete Source of Funds Checks

Source of funds refers to the origin of money used during a transaction or a series of transactions. To determine the source of funds, it is essential you gather the correct financial information during the due diligence process to ensure that firstly they are legitimate but also traceable back to the original source, whether that be an individual or business.

With all checks, from your perspective, it is essential to gather as much information as possible so you can complete the due diligence process effectively. Source of funds checks are no different, and you need to obtain financial records as well as bank statements and evaluate this information to decipher the true source of funds.

The best practices for completing source of funds checks are assessing the risk involved and considering the factors, analysing the information to ensure it’s accurate and relevant to the due diligence process and making effective decisions based on the information presented to you.

Verify 365’s Comprehensive Source of Funds Checks Helping the Due Diligence Process

Verify 365’s comprehensive client onboarding platform enables you to complete source of funds quickly and effectively. Trusted by hundreds of law firms across the globe, our innovative combination of open banking technology, source of funds questionnaire and advanced AI analytics enables you to decipher an individual or business’s source of funds.

Connect with over 4,000 banks worldwide to access financial information and bank statements. As part of the due diligence process, with our technology, you are able to analyse funding data going back two years so you don’t miss any vital information. Combined with advanced analytics, you can analyse financial data and make informed decisions about the source of funds and wealth.

In addition to this, our effective source of funds checks enable you to mitigate risk and crucially tackle financial crime. By using Verify 365, you remove anonymity for criminals, prevent fraud and protect your business. The checks will highlight any financial anomalies which will flag any money laundering, illicit funds or financial crime concerns.

Our source of funds checks eradicate the paper trail, allowing for more efficient, effective workflows. All our source of funds are regulated by the Financial Conduct Authority ensuring you are limiting criminal opportunities while complete due diligence within the guidelines. Complete due diligence with peace of mind know our source of funds checks are comprehensive, effective and compliant within regulatory guidelines.

If you would like to learn more about our source of funds checks, click here to visit our dedicated source of funds solution page.