Overview
A Source of Funds request collects two types of information from your client: their responses to the Source of Funds questionnaire — including their declared source of funds and the amount they are contributing — and their bank statement data. Together, these form the evidence used to support your firm's AML review.
The transaction amount and funding allocation
Before completing the questionnaire, the client is shown the transaction amount your firm has set — the sum they need to account for. They must declare sufficient funds or provide a reason for any shortfall before they can submit.
Where a discrepancy exists between the declared amount and the transaction value, the client's explanation is visible to your firm in the Source of Funds review.
What the client is asked to declare
Clients can declare funds from the following sources:
From the sale of propertyWe'll need the proceeds of sale, property's address and your Solicitor's details | From re-mortgage of other propertyWe'll need the remortgage amount, property's address and your mortgage lender's details |
From sales of investmentsWe'll need the type of investment, investment amount, your account details and documentation for the sale | From a gift from a 3rd partyWe'll need the gift amount, your account details, bank statement, gift letter and the 3rd party's contact details |
From savingsWe'll need your savings amount, account details, income source, and evidence of 12 months of statements from the savings account | From inheritanceWe'll need the amount of inherited funds, a letter from the Executor and a bank statement |
From a loan from a 3rd partyWe'll need the loan amount, your account details, bank statement, loan letter and the 3rd party's contact details | From other sourcesIf none of the other sources apply, use this one. You can include a description of the source and upload all supporting documentation |
The information and documentation requested for each source is as follows:
From the sale of property:
Amount
Property Address
Do any of your funds come from outside the UK? (Yes/No)
Has this money been received yet? (Yes/No)
Solicitors/ Conveyancers details (name and address)
From re-mortgage of other property:
Amount
Do any of your funds come from outside the UK? (Yes/No)
Has this money been received yet? (Yes/No)
Details for account receiving funds
Property Address
Mortgage lenders details (name and address)
From sale of investments:
Type of investment (including stocks, shares, ISAs, insurance and pension policies)
Amount
Do any of your funds come from outside the UK? (Yes/No)
Has this money been received yet? (Yes/No)
Details for account receiving funds
Document evidence upload (proof or bill of sale & Bank statement showing money has been received)
From a gift from a 3rd party:
Does the money require repayment? (Yes/No)
Has this money been received yet? (Yes/No)
Amount
Account details
Bank statement showing the transaction (if additional information required)
Information of 3rd party (including name, email address and address)
Gift deposit letter
Third party's contact details
From savings:
Amount
Do any of your funds come from outside the UK? (Yes/No)
Account details
Income source (Employed/Self employment/Retired/Other)
Annual Salary
How the payment appears on their statement
Document evidence upload (P60 and recent pay slip)
From inheritance:
Amount
Do any of your funds come from outside the UK? (Yes/No)
Has this money been received yet? (Yes/No)
Details of bank account receiving funds
Estate details plus the name of/a list of Executor(s) and their address(es)
Document evidence upload (Executors letter & bank statement showing money has been received)
From a loan from a 3rd party:
Amount
Do any of your funds come from outside the UK? (Yes/No)
Has this money been received yet? (Yes/No)
Account details
Bank statement showing money being received
Loan letter
Third party's contact details
There is also an option for 'other source':
Description of source
Amount
Do any of your funds come from outside the UK? (Yes/No)
Details of bank account receiving funds
Option to upload documents
Bank statement evidence
Clients are asked to provide bank statement evidence alongside their questionnaire responses. They can do this in one of two ways:
Open banking — the client connects their bank account directly, providing real-time, verified transaction data. Legl presents this option first.
Manual PDF upload — the client uploads a PDF bank statement. If they cannot connect via open banking, or prefer not to, they can use this option instead.
Your firm can configure the historic statement range to 3, 6, or 12 months. By default, this is set to 12 months.
For both methods, Legl's AI analysis automatically extracts the following from the client's bank statements:
Regular incoming transactions — recurring salary payments, standing orders, and other income streams
Regular outgoing transactions — recurring outgoings across accounts
Largest one-off transactions — significant individual credits or debits
Account balance trends — how balances have changed across accounts over the statement period
Higher-risk transactions — activity associated with elevated risk, such as non-GBP deposits, cash transactions, or cryptocurrency activity
ℹ️ Important
AI analysis of manually uploaded PDF bank statements has a 79–86% success rate. Where analysis cannot be completed, the review will display a message indicating that manual review is required.
Clients may also upload supporting documents — such as a mortgage offer letter or property purchase documents — where these are directly relevant to their source of funds. These document types cannot be analysed by the AI but may be used as supporting evidence.
Where a client connects via open banking and Legl detects high-risk transactions, Legl may automatically send the client follow-up questions (SoF Signals). Their responses are included in the Source of Funds review.
ℹ️ Further guidance
For how to interpret the Source of Funds review once a client has submitted:
Open banking transaction data
When a client connects their bank account via open banking, Legl retrieves their transactions over the required period. Transactions are organised using a classification system that assigns a category and subcategory to purchase-related activity, giving additional context to each transaction and helping your firm more efficiently understand the nature of incoming and outgoing funds.
Transaction classification is currently supported for banks in the UK, Ireland, and France.