SoW assessments are used to identify how a customer accumulated their wealth, while SoF information relates to understanding of how and for what reason an account is going to be funded.
Such checks are key elements of risk assessment and management, allowing FIs to recognise risks and suspicious activity, and note any inconsistencies which should be mitigated or escalated.
“In line with regulatory expectations, FIs should adopt a risk based approach with respect to the amount of information collected, and corroboration required, for SoW/SoF purposes.”
