By
August 24, 2026
What Documents Can Be Used as Proof of Source of Funds?
Proof of source of funds is evidence showing where money received or used by a UK company actually came from. Banks, payment providers and other regulated financial businesses may request this evidence as part of their Know Your Customer (KYC), Customer Due Diligence (CDD) and Anti-Money Laundering (AML) checks.
The documents required depend on the origin of the money. Common examples include bank statements, customer invoices, contracts, loan agreements, investment documents and asset sale agreements.
Source of funds describes the origin of particular money.
For example, if £50,000 is transferred into a UK company's business account, the provider may want to understand:
Where did the £50,000 come from, and why did the company receive it?
The answer could be:
The supporting documents should create a clear and credible link between the stated source and the funds received.
Depending on the transaction, a financial provider may accept or request documents such as:
There is no single document that works for every source-of-funds check.
If the money comes from customers, invoices can be important evidence.
For example:
Customer contract → £20,000 invoice → £20,000 payment → Company bank account
The provider may ask for the invoice together with a bank statement or payment confirmation showing that the corresponding payment was received.
For larger or recurring customer payments, a contract can help explain the commercial relationship behind the transaction.
A contract may show:
Contracts can be particularly useful when a payment is significantly larger than the company's normal transactions.
Bank statements can demonstrate how money moved between accounts and where funds were received.
A statement may help show:
However, a bank statement may show where the payment came from immediately before reaching the account without necessarily explaining how the money was originally generated.
Additional evidence may therefore be required.
A new UK company may initially be funded by its director.
Evidence could potentially include:
For example:
Director's savings → Personal account → £30,000 transfer → UK company account
For significant amounts, the provider may ask for evidence showing how the director accumulated the money.
If a shareholder invests money into the company, evidence may include:
The documents should explain both the origin of the money and why it was transferred to the company.
If the company's funds come from borrowing, appropriate evidence might include:
The provider may also want to understand who the lender is and the nature of the lending arrangement.
If money originates from selling an asset, supporting evidence could include:
For example:
Company vehicle sold → Sale agreement → Buyer pays company → Funds received
The evidence should allow the transaction to be followed from the asset sale to the payment.
If funds originate from investments, possible evidence can include:
The documentation should demonstrate how the investment generated the funds being used.
Where funds originate from the sale of property, evidence might include:
The precise evidence requested will depend on the transaction and provider.
If a director or shareholder owns another business and money is being transferred to the UK company, simply showing the transfer may not always be sufficient.
The provider may want to understand:
Supporting evidence might include company accounts, invoices, bank statements, loan agreements or investment documentation.
Sometimes, but not always.
A bank statement can demonstrate that money came from a particular account, but it may not establish the underlying economic origin of the money.
For example:
Bank statement: Shows £100,000 transferred from the director.
Source-of-funds question: How did the director obtain the £100,000?
Additional evidence could therefore be requested.
The terms are sometimes confused.
Proof of funds generally demonstrates that money is available.
Source of funds explains where that money originated.
For example, a bank statement showing £100,000 in an account may prove the funds exist.
A property completion statement showing that the £100,000 came from selling a property helps demonstrate the source of those funds.
Source of funds relates to particular money involved in a transaction.
Source of wealth relates to how an individual accumulated their overall wealth.
For example:
Source of funds: £50,000 from the sale of shares.
Source of wealth: Wealth accumulated over 20 years through business ownership and investments.
A provider may request either or both depending on its due diligence requirements.
One document does not always provide the complete picture.
A provider might ask for additional evidence if:
Source-of-funds checks are risk-based, so requirements can vary significantly between transactions and providers.
No.
Documents submitted for KYC or source-of-funds verification should not be manually altered.
Do not change:
If information is incorrect, obtain a corrected or updated document from the original issuer.
Often, yes.
Financial providers may accept original electronic documents such as:
However, the provider may specify acceptable file formats and document requirements.
Original downloadable documents are generally preferable to manually created screenshots where official documents are available.
The easiest approach is to create a clear trail from the underlying source to the company's account.
For example:
Customer revenue
Contract → Invoice → Payment confirmation → Company bank statement
Director funding
Evidence of director's funds → Personal bank statement → Transfer → Company bank statement
Business loan
Loan agreement → Lender payment → Company bank statement
Asset sale
Sale agreement → Payment confirmation → Company bank statement
The clearer the transaction trail, the easier it can be for a provider to understand the source.
Acceptable evidence depends on where the money originated. Common documents include bank statements, invoices, contracts, loan agreements, investment statements and asset sale documents.
An invoice can provide important evidence where money comes from a customer, particularly when it can be matched to the corresponding payment.
It can form part of the evidence, but additional documents may be required to establish how the money was originally generated.
Yes, a director or shareholder can potentially fund a company using personal funds. The provider may request evidence demonstrating the origin of those funds.
Potentially, yes. Providers may accept foreign documents but can impose additional requirements, including translation or further verification.
The provider may need multiple documents to establish a complete trail showing where the money originated and how it reached the company's account.
The documents used as proof of source of funds for a UK company depend on where the money came from.
Common evidence includes bank statements, customer invoices, contracts, loan agreements, investment records, payment confirmations and asset sale documents.
The strongest evidence usually creates a clear trail:
Original source → Supporting document → Payment → UK company account
UK companies should keep accurate, complete and unedited records of significant transactions so they can demonstrate the legitimate origin of funds when requested by a bank or payment provider.
