Source of Wealth (SOW) refers to the origins of a client’s entire body of wealth (i.e., total assets). In establishing the source of wealth, financial institutions must ascertain why the client has the assets they do and how they came to accumulate them.
Examples of sources of wealth include:
- Inheritances: details about the deceased; tax or legal documents that show the transfer of family funds, including dates and amounts.
- Investments: this would include income from the acquisition and sale of investments.
- Business ownership interests: a description of the business and its industry; income statements or other sales documents.
- Employment: a description of the job and employer; a recent pay stub; annual salary or tax information; other documentation that provides proof of employment income.