A source of funds declaration is a buyer’s statement, supported by evidence, of where the money for a property purchase came from. It is a core AML requirement designed to confirm funds are legitimate.
Where you’ll see it
You’ll provide a source-of-funds declaration on higher-value purchases, especially involving large or cash payments. Supporting evidence might include salary records, business income, sale of other assets, or bank statements tracing the money.
Why it matters
Without satisfactory evidence of the source of funds, a transaction can be paused or refused. Preparing clear documentation in advance showing a legitimate, traceable origin for the money keeps a purchase moving smoothly.
What it is not
A source-of-funds declaration is not a tax filing, and it is not satisfied by a bare statement supporting evidence is usually expected. It is also distinct from proof of funds, which simply shows the money is available.
Example
A buyer funding a purchase from the sale of another property provides the sale documents and bank records as evidence of the source of funds, satisfying the agent’s AML checks.
Connected documents and parties
Bank statements, asset-sale records, salary/business evidence; buyer, agent/bank, regulators.
Going deeper: related reading: anti-money laundering.
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Last reviewed: June 2026