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by Undo Capital
December 15, 2025
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What Is Source of Funds/Wealth (SOF/SOW)?

Source of Funds (SOF) and Source of Wealth (SOW) are compliance checks that verify where an investor’s money comes from and how they accumulated their overall wealth.

Source of Funds/Wealth (SOF/SOW) Meaning

The SOF/SOW meaning centres on anti-money laundering (AML) obligations for companies and investment platforms. To define SOF/SOW in practice, Source of Funds confirms the specific money used for an investment, such as salary, savings, dividends or asset sales, while Source of Wealth explains the broader origin of a person’s financial standing, including career history, business ownership or long-term investments. A clear SOF/SOW definition is essential because companies must ensure investor capital is legitimate before issuing shares or completing a funding round. SOF/SOW checks stand for transparency, regulatory compliance and responsible fundraising.

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Disclaimer: Our services are designed to assist startups and businesses with company formation, legal agreements, and funding-related documentation. We do not provide investment advice, financial advice, or tax advice, nor are we regulated by the Financial Conduct Authority (FCA). Participating in startups and early-stage enterprises carries inherent risks, including limited liquidity, absence of dividends, potential loss of investment, and dilution. Any decisions regarding investments should be made independently by the investor as part of a well-diversified portfolio.