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Source of Funds local deviations

Mason Friis-Burden
Updated

The article below discusses various types of sources of funds specific to the region, along with the local documentation needed.

BG Saxo (Italy)

MENA Region

SCML UK

 

BG Saxo (Italy) 

Income from employment 

In Italy, individuals have the possibility to retrieve from the INPS Italian National Institute of Social Security a document called “Estratto conto previdenziale”. The document lists all the social security contributions recorded for a worker. This includes contributions from employment, voluntary contributions, and any credited periods such as military service or other recognized activities. This document can be accepted as an alternative to document the SOF. 

Income from retirement 

In Italy, individuals have the possibility to retrieve from the INPS Italian National Institute of Social Security a document called “Estratto conto previdenziale”. The document lists all the social security contributions recorded for a worker. This includes contributions from employment, voluntary contributions, and any credited periods such as military service or other recognized activities. 

This document can be accepted as an alternative to document the SOF.  

Inheritance 

The complete declaration of Succession document that reflects the inheritance details can be collected instead of the signed letter from a solicitor or lawyer or the grant to probate (with a copy of the will). 

Generally, it is not necessary to request the grantor’s occupation background (if we have a clear understanding of the inheritance and that we have collected one of the above-mentioned mandatory documents). 

Dividends to an individual 

In case of Self-employed person, instead of collecting both the Audited Financial report of the company reflecting the dividend payout to the shareholders and the bank statement reflecting the same amount being credited to our client, we can request the latest tax statement reflecting the dividend payments received during the year. 

Sale of real estate 

A signed letter from the real estate agent is not an acceptable document. 

 

MENA Region

Income from employment 

Within the financial sector in the UAE it is common practice to use salary certificates when corroborating a person’s income and employment.  

Following information should be included in the salary certificate: 

  • Date of issue 
  • Name of the employee 
  • Job Title or position 
  • Joining date 
  • Basic monthly salary 
  • Allowances (if any) 
  • Benefits (if any) 
  • Name, signature and stamp/seal of employer 

Generally, salary certificates within the last 6 months are acceptable. However, in case of red flags, the analyst can either request a salary certificate issued within one month or latest salary slips to back up the information contained in the salary certificate. 

In case a client cannot provide a salary certificate, we may allow the use of salary slips to document their income under certain conditions. 

The salary slips must at least contain following: 

  • Name of the employee 
  • The position held by the employee in the organization. 
  • Gross and/or net salary 
  • Allowances (if any) 
  • Benefits (if any) 
  • Name, signature and stamp/seal of employer 

In addition to above, the client must provide an explanation to why a salary certificate could not be issued.  

Inheritance 

In the UAE the judicial system plays a big role in the validation of inheritances and the distribution of these to the rightful owners. The UAE courts will issue court orders wherein key information is available, such as the total estate, the beneficiaries of the estate and the share size is stated for each beneficiary. 

For UAE clients we therefore accept court orders as valid documentation of the inheritance. 

Sale of real estate 

In the UAE the judicial system plays a big role in the validation of inheritances and the distribution of these to the rightful owners. The UAE courts will issue court orders wherein key information is available, such as the total estate, the beneficiaries of the estate and the share size is stated for each beneficiary. 

For UAE clients we therefore accept court orders as valid documentation of the inheritance. 

Royalties 

Since there is no tax registration in the UAE, we cannot request Tax Documentation. Instead, request both documents: 

  • Royalty statements or settlement reports (the document must be issued from the royalty payer, showing payer details and amounts received). 
  • Bank statement (the bank statement must show the royalties paid out within the past 12 months and clearly show the dates of receipt, amounts credited and name of the payer). 

 

SCML UK

Income from employment

The bank statement does not need to show the 3 most recent salary payments, the latest payment suffices.

Company Sale

If collecting a copy of contract of sale as evidence of the company sale, this does not have to be signed by a solicitor/lawyer. Signatures from both parties (buyer and seller) are sufficient. 

Company Profits

If the client indicated company profits as SOF/SOW, we must collect the most recent financial statements from Companies House. If the financial statement in Companies House contradicts what the client has declared as their ITI, then it may be applicable to ask the client for further information (e.g. half yearly accounts, bank statement or other source of funds injection).

Loans

Loans are not an acceptable SOF in the UK.

Savings from fixed-deposits account

A Savings Statement dated within the past 3 months showing the name of the financial institution is sufficient for SOF documentation.

Dividends

The financial statement collected as part of the SOF documentation does not need to be audited.

 

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