Overview
A Commercial Source of Funds request is a way for your law firm to collect information about where the money for your transaction is coming from. It is sent to you as part of their legal and regulatory obligations, and completing it is a required step in your matter progressing.
What you can use this for
Understanding why your law firm has asked for source of funds information
Knowing what types of funding sources you can declare
Understanding what bank evidence you will need to provide
Knowing what to do if part of the funding involves a third party
Why your law firm needs this
Law firms in the UK are required by anti-money laundering regulations to verify the source of funds in commercial transactions. This means they need to understand where the money is coming from and see evidence to support it. Completing this request is a normal and necessary part of the legal process for commercial matters.
What you will need to provide
You will be asked to:
Declare each source of funding and the amount it represents, for example a director's loan, a capital injection, or an external investment
Provide bank statement evidence, either by connecting your bank account directly or uploading bank statements as PDF files
Explain any transactions in your bank statements that may need further context, such as large cash deposits or foreign currency payments
If any of the funding is coming from a third party, such as an investor, you will be able to ask them to submit their own information separately.
Where to find this in Legl
You will receive a link from your law firm, either by email or shared directly. This link takes you to the Legl Engage interface, where you will complete your submission.
Important information
You do not need to create a Legl account to complete a Commercial Source of Funds request. The link your law firm sends you gives you direct access.
Your information is submitted securely to your law firm through Legl. It is not shared with any other party without your firm's involvement.
If you are unsure about any part of the request, contact your law firm directly. Do not guess at source types or amounts, as inaccuracies may delay your matter.
Completing this request is a legal requirement for your matter to proceed. If you have concerns about providing this information, speak to your law firm.