Proof of Source of Funds for Crypto & More
Anti-money laundering and counter-terrorist financing legislation in the European Union (EU) has been greatly tightened in recent years and has recently been subject to strong momentum. The European legislator is making efforts to adapt its directives to the current requirements. As part of this, the regulations on proof of source of funds in Europe were also recently tightened.
However, the directives issued by the European Union are not directly applicable in the member states of the European Union. Thus, the European Union determines the rough guidelines for the member states through its directives. However, the detailed implementation in the law of the member states is the responsibility of the individual national legislators. For that reason the money laundering laws in the EU member states may differ from one another in terms of details.
As it is not possible to present the national regulations of all EU member states on this website due to the scope of the information, we present the legal situation in Europe using Germany as an example. As already mentioned, the regulations in other member states are likely to differ from this only in matters of detail.
Source of Wealth Declaration in Germany (exemplary for Europe)!
Recently, you may be asked questions about the origin of your financial resources in everyday life, for example when making cash deposits to your checking account. For most people, this represents an unexpected and, above all, unwanted invasion of privacy.
However, little detailed information exists about the so-called proof of source of funds oder source of wealth declaration. For as deeply as this proof encroaches on privacy, so little was heard about it in the media. Most of the reporting was limited to the case of cash deposits. But the obligation to provide proof goes much further. For example, proof of origin plays a role in the following asset classes in particular. Valuable assets can be precious stones, watches, works of art, vehicles, ships and other high-value goods.
Therefore, understandable, to the point and objective information is all the more important. We therefore provide this information in the form of our FAQ, in which we answer your most important questions in a clear and understandable way. The FAQ section will be continuously expanded by the questions you ask. We hope that you will not be too surprised and unsettled if you are ever asked to provide proof of the origin of your assets.
On the other pages, you will also find more detailed information on special topics and many useful tips on how to deal with the demand for proof of origin of funds in practice.
Proof of source of funds required from you everywhere in Europe?
The question of a bank or a crypto exchange about the source of the funds is usually irritating for those concerned at first. This is because very few people have ever had to answer such questions. It is true that in rare situations it has been customary to disclose one’s wealth (e.g. when applying for social benefits). Also a rough information about incomes and expenditures will have furnished many already once (e.g. with the credit inquiry with a bank).
However, until recently, it was generally not necessary to explain where financial resources came from.
The requirement of a proof of source of funds in Germany (exemplary for Europe) has its origin in the Money Laundering Act (“Geldwäschegesetz“, GwG) in connection with further special laws. Therefore, the source of wealth declaration to be provided basically places you under a general suspicion of money laundering under criminal law.
However, from the point of view of the rule of law, the presumption of innocence applies. Nevertheless, the European legislator took action in line with national legislators and obliged a number of entities to require proof of the source of funds from you in certain situations. As a result, since then, for example, every bank must ask its customers for proof of source of funds in the event of higher cash deposits and conspicuous account movements.
Important topics around the proof of source of wealth in Europe
On our website you will find important information on practice-relevant topics around the proof of source of wealth, for example:
- when an obligation to provide proof exists,
- suitable evidence regarding the source of wealth clarification,
- dealing with your own bank,
- proceedings against your crypto exchange for Bitcoin and other cryptocurrencies,
- correspondence with crypto exchanges like Binance, Kraken, Bitstamp, Coinbase and Bitpanda,
- legal basics and backgrounds in Germany and in Austria,
- current news on the source of wealth declaration,
- criticism from the point of view of the rule of law.
We would like to show banks and exchanges in their now used question practice in the legally permissible limits. For the presumption of innocence, which underlies every constitutional state, still applies. We strictly reject a control of blameless citizens that is similar to a dragnet.
We support you with our experience!
If you are in any way faced with problems due to the question of the origin of your financial resources that you cannot solve yourself, we will be happy to support you. Please feel free to contact us first without obligation and confidentially by e-mail or via our
Please describe your personal matter in detail and receive a free initial assessment from us, on the basis of which you can decide how to proceed.
- Published: November 17, 2021
- Latest Update: March 27, 2022
