Source of Funds and Source of Wealth
At Le Gallais & Luce we are legally required to ensure that any funds received from a client or on a behalf of a client are from credible sources. To assist you, we have put together some examples of documents that we may accept in order to confirm your source of funds and source of wealth.
“Source of funds” is the activity, which generates the funds for a relationship e.g. a client’s occupation or business activities. Information concerning the geographical sphere of the activities may also be relevant. *
“Source of wealth” is distinct from source of funds, and describes the activities, which have generated the total net worth of a person both within and outside of a relationship, i.e. those activities that have generated a client’s funds and property. Information concerning the geographical sphere of the activities that have generated a client’s wealth may also be relevant. **
In order to complete our due diligence requirements you will be asked to provide evidence of your source of funds and/or source of wealth. Please have this information and documentary evidence of the same to hand as any delay in providing such documentation may result in Le Gallais & Luce being unable to complete the required transaction or the withdrawal of all our legal services.
Depending on the circumstances of your transaction, we may ask for one or more of the below:
1. Information on your Occupation and Income (i.e. wages, bonus)
- Written confirmation of annual salary detailing your position at the firm signed by your employer.
- Original or certified copy of a recent pay slip.
- Statement from the savings institution and proof of source of wealth.
3. Property Sale
- Certified copy of contract of sale.
- Written confirmation of sale signed by advocate/solicitor on their headed paper by the firm who acted in the transaction e.g. completion statement.
4. Sale of Investments
- Original or certified copy of contract note(s).
- Written confirmation of sale/holding signed by accountant/broker.
- Original or certified copy of Will/Grant of Probate/Letters of Administration.
- Written confirmation of inheritance signed by advocate /solicitor/trustee/executor.
6. Company Sale/Dividend
- Original or certified copy of contract of sale.
- Written confirmation of sale signed by advocate/solicitor/accountant.
- Original or certified copies of any relevant minutes.
7. Divorce Settlement
- Original or certified copy of court order.
- Written confirmation of settlement signed by advocate/solicitor.
8. Lottery/Gambling win
- Evidence from the lottery company.
- Winnings’ receipt.
- Written Gifting Letter to be provided from third party making the gift, for sample letter, please go to https://www.lgl.je/wp-content/uploads/2019/07/gifting-letter.docx.
- Documentary evidence of the source of funds and source of wealth of the third party making the gift will be required.
- Third parties gifting funds towards a transaction will also be asked to provide their due diligence, for more information please refer to the guidance on Client Identification – Individual:
Should it be of assistance, certification of the original documents can be undertaken by one of the Le Gallais & Luce staff members. Otherwise, please note that certified copies must be signed by a suitable certifier. Acceptable persons to certify document may include any of the following, who must state their full name and capacity in which they are signing (self-certification or certification by a family member or close relation is not acceptable):
a) a member of the judiciary, a senior civil servant, or a serving police or customs officer;
b) an officer of an embassy, consulate or high commission of the country of issue of documentary evidence of identity;
c) an accountant, doctor, practicing lawyer or notary public who is a member of a recognised professional body; and
d) a director, officer or manager of a regulated financial services business which is operating in a well-regulated jurisdiction.
Please also note that for certification to be effective, a person will need to personally present an original document to an acceptable suitable certifier and that certifier will need to be subject to professional rules (or equivalent) providing for the integrity of the certifier’s conduct.
Suitable wording of the certification
Should the certification be done externally, please note that the person carrying out the certification must state:
- “I hereby certify that I have seen the original of this document and that this is a complete and accurate copy of that document.”
Certifiers need to provide their details, sign and date the certification documents.
Should you have any difficulty in obtaining the above documentation in order to support source of funds and source wealth for a particular transaction, then please contact us to discuss.
Le Gallais & Luce is a Member Firm of The Law Society of Jersey and is registered with the Jersey Office of the Information Commissioner in their capacity as the Data Protection Authority. The Firm obtains client personal information in the course of the Client Due Diligence process and satisfactory completion of our take-on procedures. The personal information held is restricted to that required for Anti-Money Laundering/Counter-Terrorist Financing purposes.