For solicitors, conveyancers, estate agents and people working within the financial sector know the critical importance of completing effective and enhanced due diligence on their clients to validate their identity as well as take a risk-based approach to protect their business from potential threats and report any suspicious findings to the authority figures. We’ll discuss exactly what to look for from your source of funds provider.
One of the common and most important checks within the due diligence processes is a source of funds check. These types of checks enable experts within their field to analyse financial data to distinguish exactly where the funds for a specific transaction have come from and confirm the true source of funds.
In our latest feature article, we dive into exactly what to look for from your source of funds check provider. What the benefits are for your business and if they match the needs of your business depending on what sector you are operating in. We also give you an insight into Verify 365’s source of funds checks and what we can provide your business to ensure you meet your due diligence and compliance obligations.
What to Look For From Your Source of Funds Check Provider
There are important elements to consider when looking for the right source of funds check providers to ensure your needs and requirements are met, these include:
Comprehensive Financial Data Availability – The most important element of a source of funds check is ensuring you have access to all the financial data required for the transaction. Anything that is missed or you are unable to access could be vital in first determining the true source but could be classed a suspicious activity that must be reported.
Verify International Funds – Not all transactions involve domestic funds so if you’re client is using funds from overseas, its essential your provider can validate international funds so you can analyse the financial data, establish the source and report any anomalies and unusual activity.
Meets your Due Diligence Obligations – Source of funds checks are a crucial part of the due diligence process, and businesses operating within the various different sectors will complete different levels of due diligence from lite to enhanced checks. Enhanced due diligence (EDD) is where you will likely complete source of funds checks and it’s crucial your provider ensures you are able to thoroughly analyse financial data and meet the due diligence protocols your business has set.
Analyse Financial Data in One Efficient Workflow – The due diligence process should be simple and smooth in one seamless workflow. Your provider should enable you and your staff to validate identity documents and analyse source of funds data in one efficient workflow so you then have access in one comprehensive report. Creating different workflows for one client could become time consuming especially in industries that strive for efficiency.
Protected and Regulated Checks – Any data presented by your client must be protected and secured. Your provider must ensure the financial data cannot be breached with the highest level of security and anything finance related must be regulated to ensure there is no criminal activity taking place.
Meets your Compliance Obligations – Quite simply, your provider must ensure your source of funds checks are compliant with the regulatory framework of the authority bodies. While each sector will likely have different authority bodies, all will have set out stringent guidelines that must be followed, and your provider must ensure you are meeting these, or you run the risk of potential fines and sanctions.
What Verify 365 Can Bring to Your Business
Verify 365’s comprehensive client onboarding platform enables you to complete source of funds quickly and effectively. Trusted by hundreds of law firms, conveyancers, estate agents and finance businesses 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, thereby meeting your compliance and due diligence obligations. If you’d like to find out more about Verify 365’s source of funds checks, download our source of funds leaflet through our website.
