Overview
Commercial Source of Funds is a dedicated Legl product for collecting, verifying, and reviewing the source of funds for corporate and commercial matters. It is built for the complexity of commercial transactions, where multiple parties may need to contribute funds, sources are corporate rather than personal, and the evidence needs to be understood in the context of what is already known about the business entity.
While it shares the same foundations as Legl's individual Source of Funds, Commercial Source of Funds is a meaningfully different product with its own workflow, submission experience, and review capabilities.
What you can use Commercial Source of Funds for
Collecting source of funds evidence from multiple parties in a single commercial transaction
Capturing corporate funding sources such as director's loans, capital injections, and external investments
Allowing clients to delegate a funding source directly to a third party, such as an investor, without the firm needing to be involved in the handoff
Automatically analysing bank statements for high-risk signals including cash deposits, cryptocurrency transactions, and foreign currency payments
Running five automated anomaly checks against all analysed bank statements to surface patterns that may warrant further investigation
Reviewing declared sources alongside company financial data pulled from the associated entity's company report
Automatically generating follow-up questions for clients when high-risk transactions are identified, reducing manual back-and-forth
Downloading a full PDF report of the application for your file
How Commercial Source of Funds works
Firm side
Commercial Source of Funds is added as a step within a workflow. When configuring the step, you set the bank statement period you want clients to cover. The available options are 3, 6, 12, or 24 months, with 12 months as the default.
Once the workflow is configured, you send an Engage request to your client and associate the contact with the relevant business entity, including their relationship to the business and ownership percentage.
Client submission
The client opens their request, selects the transaction type, and enters the total transaction amount they need to account for. They then declare each source of funding by selecting the source type, such as a director's loan, capital injection, or external investment, and entering the relevant amount and details.
For each source, the client provides bank statement evidence. They can either connect their bank account directly via open banking, or upload bank statements manually as PDF files. If they choose to upload manually, Legl will attempt to extract and analyse the transaction data automatically.
Where a source involves a third party, such as an investor, the client can delegate that source. They generate a link and share it directly with the third party, who completes their own submission independently. Their contribution is connected to the main application automatically once submitted.
If Legl identifies any high-risk transactions during analysis, the client is asked to provide an explanation for each one before submitting.
Firm review
Once the client has submitted, the firm reviews the consolidated results in Legl. The review brings together all declared sources, bank statement analysis, and company data in a single page rather than requiring the firm to work through a PDF.
What the review includes
Sources: each declared source, the amount, who provided it, and whether any delegated sources are still pending
Verified accounts: bank accounts connected via open banking, with transaction data retrieved automatically
Insights: regular incoming and outgoing transactions, large one-off transactions, and flagged high-risk activity across all analysed accounts
Bank statement anomalies: five automated checks run against all analysed bank statements, flagging patterns such as pass-through funds, round number credits, and credit patterns that do not match the declared source
Company financials: financial data from the associated entity's company report, where one has been run, providing context for the declared sources
Questionnaire: the client's responses to the source of funds questions
Transaction follow-ups: the client's explanations for any high-risk transactions identified during analysis
PDF report: a full downloadable report of the application including all of the above
How it goes beyond individual Source of Funds
Individual Source of Funds is designed for a single personal client providing evidence of personal funds. Commercial Source of Funds addresses a different and more complex set of challenges:
Multiple parties: commercial transactions often involve more than one person or entity contributing funds. Commercial Source of Funds is designed to collect and consolidate information from multiple parties as part of a single review.
Corporate funding sources: rather than personal income, savings, or gifts, commercial funds may come from business accounts, corporate reserves, investment vehicles, or other entities. Commercial Source of Funds captures the financial information relevant to these sources.
Entity-linked intelligence: the review is designed to be read in the context of what is already known about the corporate entity, connecting source of funds evidence with company data and creating a more complete picture for your firm's AML assessment.
Automated analysis: bank statements and open banking data are analysed automatically, with insights, anomaly checks, and transaction follow-ups generated without manual intervention.
Where to find Commercial Source of Funds in Legl
Commercial Source of Funds is added as a step when building or editing a workflow. Once configured, it can be included in any Engage request sent to a client.
ℹ️ Important
Only Admins can create or amend workflows in Legl.
Important information
Commercial Source of Funds is a distinct product from individual Source of Funds. It is not an extension of the same feature but a purpose-built solution for commercial and corporate matters.
Individual Source of Funds for personal clients is a separate product and is unaffected by Commercial Source of Funds.
Automated bank statement analysis requires either an open banking connection or a successfully processed manual upload. Where Legl cannot process a statement, that source will need to be reviewed manually.
If you do not have access to Commercial Source of Funds, contact your Legl account manager or contact our Support team.