Module 3 · Chapter 6

Source of Funds and Source of Wealth Checks

A firm must know which account a client’s money comes from, and how the people behind it became rich. This chapter shows how to check both, and what to do when money arrives early.

≈ 8 min read 8-question test

In this chapter

  • The difference between where the money comes from and how the family became rich
  • What evidence fits each question, including money paid by someone else
  • Why money that lands before the checks are done is held and paid to no one

6.1Source of funds and wealth in one paragraph

Before money moves on a purchase, the firm asks two questions. Which account does the money come from, and how did it get there? How did the people behind the client become rich enough to pay? Each answer needs documents, not only the client’s word.

Money that arrives before the answers are in stays in the firm’s account and goes nowhere.

Key point

Trace the money back to where the wealth was made. Until both answers are proved, early money is held.

Also in this chapter

  1. Two questions about the money
  2. Why money that arrives early is held
  3. Money from a payer nobody mentioned
  4. Holding the money while questions are open
  5. Your job

Preview

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