Template or Sample for Correspondence regarding Proof of Source of Funds

If you have been approached by your bank, broker or exchange where Bitcoin and other cryptocurrencies can be traded regarding a proof of source of funds, you may already be looking around for a sample or template proof of source of funds.

However, in our opinion, it is not possible to use a useful sample or template for proof of source of funds. This is because proving the source of your financial resources is not about submitting a “pro forma” letter. Rather, the proof of source of funds serves as a way for requesting agencies to know the history of your money. A template or sample – no matter how “cleverly” it may be designed – cannot reflect your specific situation.

Who Offers Any Template or Form for the Proof of Source of Funds at All?

On the Internet, you can find relevant websites that offer forms, templates and samples for all sorts of things. Sometimes these services are free of charge, sometimes a paid subscription or payment process must first be completed.

You certainly know this from samples, templates and forms about:

• Tax returns
• Cancellations of purchase contracts on the Internet
• Cancellations of ongoing continuing obligations
• Appeals against official administrative acts
• Rent reductions
• etc.

What all these procedures have in common is that the cases are somewhat similar in nature. For example, revocations of purchase contracts on the Internet are not subject to any special requirements, so that a useful template can actually be created and used for affected persons.

In many cases, prefabricated samples and forms that are not adapted to an individual case are quite useful. In particular, it saves having to go to a lawyer, who would basically end up charging high fees for the same letter.

However, the situation is different when it comes to proof of the source of funds. This is because proof of the funds you have used in financial dealings with a bank, stock exchange or broker cannot be provided “automatically” or in a very similar way to other parties concerned.

Why a Form for the Proof of Origin of Funds is Not Helpful!

The question for the proof of source of funds is indeed made by the requesting authorities with samples, templates and forms – i.e. the requests basically always look the same – but the answer to this request must not be equally standardized.

The proof of source of funds is about the bank, the stock exchange, or the broker finding out in detail where your funds come from. It is not enough to submit a prefabricated statement, but you must prove the source of your financial means.

It is important to bear in mind that this is, after all, a procedure based on the German Money Laundering Act (“Geldwäschegesetz“, GwG). In this situation, you are virtually exposed to a general suspicion of money laundering. The answer should therefore also be prepared with the corresponding seriousness.

Evidence in this context therefore basically means the provision of proof. The evidence, which can be relevant and must be created, we have listed on our page on possible evidence. A sample, a template or a form from the Internet will not be able to help you, because it does not show the evidence that only you could submit through your documents.

If you answer the question about the proof of source of funds of your assets in a standardized form, which shows that you do not want to give a real answer, this will probably lead to doubts at the inquiring office.

Isn’t There a Sample or Template That I Can Use as a Guide?

We recommend that those affected use the information we have published on this website as a guide. For the reasons mentioned above, we cannot provide you with a sample or template that will help you achieve your goals. Please take a look at our section “What to do?” to get a first overview on the topic of proof of source of funds.

In addition, we have compiled detailed information on the specific individual cases of proof of source of funds that you can use to provide the best possible proof of your financial resources:

• Proof of source of funds for cash, precious metals and cryptocurrencies.
• When the bank asks for proof of source of funds
• At what point does the proof of source of funds requirement even apply?
• Up to what limit do I not have to provide proof of source of funds?
• Is there a cash cap on the proof of funds requirement in Germany?
• Tax office and the proof of financial means
• Evidence that can be used
• Frequently asked questions (FAQ) about proof of source of funds

From this information, you can work out a concrete procedure for yourself.

The Cover Letter for the Proof of Source of Funds

Die Beweismittel zur Erbringung des Herkunftsnachweises können nur Sie selbst in anständiger Weise aufbringen. Allerdings müssen Sie diese Beweismittel letztlich der anfragenden Stelle übermitteln. Hierbei sollten Sie nicht „einfach so“ Ihre Dokumente einreichen, sondern ein vernünftiges Anschreiben verwenden.

Bei diesem Anschreiben können Sie sich gern an folgendem Muster orientieren:

“Dear Sir/Madam,

In your letter dated (DAY/MONTH/YEAR), you requested that I provide proof of source of funds.

I can understand that you are legally obliged to request this proof of source of funds. However, in doing so, I ask that you also understand my situation – a detailed request for my assets and the history of my money seems to me, as a private individual, to be an invasion of my privacy.

Nevertheless, I am submitting these documents to you below:

Order statement from my stock sale from (DAY/MONTH/YEAR).
Salary statement from (MONTH/YEAR)
Overview of my fixed costs and my monthly savings rate

I hope that these documents are sufficient for you to prove my financial means. If additional data is needed, please let me know – and provide a reason why additional data is being requested.

I ask that my submitted documents be kept strictly confidential.

Please do not hesitate to contact me if you have any questions.

Yours sincerely
(FIRST NAME/LAST NAME)“

 

Attention: This template is not a template for the proof of origin of funds per se, but only for the cover letter that you put in front of the evidence when sending it to the requesting agency. Please note that the above list after “Documents:” is only an example.

You are welcome to use this cover letter as a sample, or to adapt it as you wish. We hereby grant you the rights to use it. Of course, the documents listed in the cover letter must be attached to the cover letter.

If you wish to adopt a “harsher tone”, you can revise this template accordingly. It is also possible that you would like to remove the reference to your privacy in order to use a “softer tone”.