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Source of Wealth/Funds/Crypto Explained

As part of our ongoing commitment to meeting our regulatory obligations, there are cases when we are required to collect more information and supporting documentation regarding our clients’ Source of Wealth and the Source of Funds/Assets, which they may have or intend to top up with us. In some cases, we might need to suspend certain operations of your account until the check is completed. We hope that the below information answers your questions on this review process and will facilitate faster and more efficient communication between you and us and hence shorter review completion.

What is a Source of Wealth  (“SoW”) request?

Source of Wealth describes the origin of your accumulated wealth or total net worth (i.e. how you obtained your funds/assets). SoW does not refer to the location of the funds (e.g. a bank account), but instead to the activity or the reason, which lets you accumulate those funds. For example, SoW could be the sale of real estate property, or in many cases, it could be employment income accumulated over past periods.

What is a Source of Funds (“SOF”) request?

Source of Funds is the source of the initial and ongoing funds used for your business transactions with Nexo. For example, the SOF you used to top up your Nexo account could be your employment income. 

Note: In some cases, your SoW and SOF could be the same. For example, you have accumulated your SoW from your employment income over the years and your SOF for the specific top-up with Nexo is your current paycheck. In those cases, the supporting documents you provide should prove both SoW and SOF. 

What is a Source of Crypto request? 

Source of Crypto refers to when and where you have acquired your crypto asset(s). 

What documents can be submitted for those checks?

Below is a non-exhaustive list of acceptable documents:

Fiat Source of Wealth and Source of Funds Supporting Documents for Individuals

  • Employment income - recent payslips or bank statement(s) displaying employment income for at least the last three months OR personal income tax return for the latest fiscal year;
  • Investments - investment statement(s), certificate(s) or agreements and bank statement(s) displaying clearly income from investment OR letter from a financial advisor detailing the nature of the investment and bank statement(s) displaying clearly income from investment;
  • Dividends or Profits from Company - latest company annual accounts / financial statements (audited, if available) and bank statement(s) displaying clearly income from dividends OR dividend statements and bank statement(s) displaying clearly income from dividends;
  • Loan - loan agreement(s) or statement(s) and bank statement(s) displaying clearly deposit(s) from Loan;
  • Sale of Assets - notarised sales contract (signed by all authorized parties) or other document reflecting sale of asset(s) and bank statement(s) displaying income from sale of asset(s);
  • Inheritance/Insurance/Gift - copy of will / check / grant or probate and bank statements reflecting the received insurance inheritance, insurance or gift proceeds OR Notarized letter from a donor and bank statements reflecting the received insurance inheritance, insurance or gift proceeds; 
  • Retirement - bank statement(s) reflecting clearly income from retirement for at least the last three months. 

 

Fiat Source of Wealth and  Source of Funds Supporting Documents for Corporate Clients?

  • Corporate income - latest company annual accounts / financial statements (audited, if available) OR corporate income tax return for the latest fiscal year;
  • Investments - investment statement(s), certificate(s) or agreements and bank statement(s) displaying clearly income from investment OR letter from a financial advisor detailing the nature of the investment and bank statement(s) displaying clearly income from investment;
  • Dividends or Profits from Company - latest company annual accounts / financial statements (audited, if available) and bank statement(s) displaying clearly income from dividends OR dividend statements and bank statement(s) displaying clearly income from dividends;
  • Loan - loan agreement(s) or statement(s) and bank statement(s) displaying clearly deposit(s) from Loan;
  • Sale of Assets - notarised sales contract (signed by all authorized parties) or other document reflecting sale of asset(s) and bank statement(s) displaying income from sale of asset(s).

 

Source of Crypto Supporting Documents (Individual and Corporate Clients) 

  • Crypto assets purchased on crypto exchanges/brokers 
      • Тransaction report or Screenshots reflecting purchase and withdrawal confirmation and displaying your account ID and all transaction details; OR
      • Confirmation emails which provide proof of purchase and withdrawal; OR
      • Receipts which provide proof of purchase (e.g. using an OTC)
  • Trading profits from exchanges/brokers 
      • Screenshots of the transaction history displaying profits; OR
      • Transaction history displaying withdrawals to Nexo; OR
      • Screenshots of the exchange/broker account displaying your account details.
  • Income from services (e.g. affiliate income or other services) 
      • Detailed description of the service; AND
      • Receipts for services which have been paid for in cryptocurrencies; AND
      • Explanations of the origin of the cryptocurrencies used for the payment transactions; AND
      • Screenshots of your wallets, which show their current income; AND
      • Screenshots of your transaction history and withdrawal history.
  • Initial Coin Offering (“ICO”) and token sales 
      • Copy of the contract or agreement confirming payment made in cryptocurrency; AND
      • Full name of the ICO, as well as the associated project's website; AND
      • Transaction history that documents the purchase and withdrawal of the token (wallet addresses and transaction ID); AND
      • Bank statement, if a fiat currency was used for investing; AND
      • Confirmation emails, which display the purchase.
  • Mining
      • Receipts for the purchase of mining hardware, on which the address of the buyer and seller are displayed; OR
      • Operating cost statements (e.g. electricity bills) also issued in your name; OR
      • Screenshots of mining revenues and rewards; OR
      • Screenshots displaying the transaction history from and to wallets, which display wallet addresses and transaction IDs (self-made “Excel lists” are not accepted).
  • Staking (Master Nods)
      • Screenshots of the transaction history on which deposits, withdrawals, and profits are visible; AND
        Screenshots of the transaction history on which withdrawals to Nexo are visible; AND
      • Wallet addresses and transaction IDs.
    • Airdrops 
      • Screenshots of the transaction history on which deposits, withdrawals and are visible; AND
      • Wallet addresses and transaction IDs
  • Coin or token swaps 
      • Screenshots of the transaction history (wallet addresses and transaction IDs)
  • Lending and liquidity pools 
    • Screenshots of the transaction history (wallet addresses and transaction IDs). Please clarify where you have deposited the assets as collateral, as well as in what amount and where the collateral that is being used has come from.

 

How do I submit my supporting documents? 

We will notify you via email if we require any information regarding your funds/assets. The email will contain detailed instructions on how to send us your documentation. 

All personal information sent to Nexo is kept strictly confidential. More information on our privacy policy is available here.

If you have any questions, please contact our customer support in-app, via the website, live chat, or write to support@nexo.io.

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