Bigger picture · Source of wealth
Source of wealth: how was the wider financial position built?
Source of wealth looks beyond one deposit or one bank account. It is about the events, work, assets and income that explain how a person built their overall financial position over time.
The wealth story
Usually it is a picture built over years
- 01
Earlier
Employment, starting a business or receiving an inheritance may begin the story.
- 02
Over time
Savings, investment returns and increases in asset value can add to it.
- 03
Later events
A property sale, business exit, pension release or substantial gift may change the picture.
- 04
Today
The operator is trying to understand whether the current financial position is consistent with that history.
Possible building blocks
There is no single normal way to build wealth
Employment and pension
Long-term earnings, bonuses, pension income or retirement savings may form part of the picture.
Business ownership
A business can create wealth through income, retained value or a later sale.
Property
Property ownership, rental income or sale proceeds may help explain accumulated wealth.
Investments
Savings and investments can grow over time and may be relevant to the overall financial position.
Inheritance
Inherited money or assets can be an important part of a person’s wealth history.
Settlement or gift
A genuine settlement or substantial gift may also explain part of the wider picture.
What is the operator trying to understand?
The point is usually whether the explanation for the customer’s overall wealth is coherent and can be supported where evidence is needed. That does not necessarily mean producing a complete inventory of every asset owned.
When it matters most
Some higher-risk situations require a closer look at wealth
PEP relationships
Casino enhanced due diligence can include taking adequate measures to establish source of wealth and source of funds.
Specified higher-risk countries
Certain casino relationships involving higher-risk third countries can carry additional source-of-wealth and source-of-funds requirements.
Other risk-based cases
Outside those explicit cases, the amount of information sought should still reflect the risk and the legal framework that applies.