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What is 'Source of funds'?

Fred_Bear_2
Fred_Bear_2 Posts: 392 Forumite
in Savings & investments
My daughter applied for a Post Office fixed rate bond but because she did not state the 'source of funds' within 28 days they refused to open the account. Her payment was a personal cheque from her Nationwide account. She assumed the source of funds was her Nationwide account. My question is what should she have told the Post Office was her source of funds? Help please.
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Comments

  • gozomark
    gozomark Posts: 2,069 Forumite
    they want to know where the money came from originally - things like

    sale of house
    inheritance
    employment income
    gift

    its basically for money laundering purposes, so don't put things like

    prostitution
    drugs
    gun running
    robbed a bank

    :rotfl:
  • nzseries1
    nzseries1 Posts: 2,240 Forumite
    It's more like "where did the money *originally* come from"? Was it wages saved over a period of time... was it inheritance... perhaps from the sale of a house... was it from the sale of a large crop of drugs... something like that.
    They're required to ask this as part of the UKs Anti-Money-Laundering laws.

    EDIT: gozomark, ya beat me to it :D
    You're spelling is effecting me so much. Im trying not to be phased by it but your all making me loose my mind on mass!! My head is loosing it's hair. I'm going to take myself off the electoral role like I should of done ages ago and move to the Caribean. I already brought my plane ticket, all be it a refundable 1.
  • dunstonh
    dunstonh Posts: 120,277 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    They're required to ask this as part of the UKs Anti-Money-Laundering laws.

    EU rather than UK.

    Savings built up from surplus income is a common response for small amounts.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Fred_Bear_2
    Fred_Bear_2 Posts: 392 Forumite
    Thanks for your quick replies. In my daughter's case the money in her Nationwide account has come from lots of places e.g. student loan, grants, allowance from grandparent, earnings etc. So it didn't come from one lump sum. Any suggestion what she can state honestly but also comply with the anti-money laundering regulations?
    Written before dunstonh's reply.
  • gozomark
    gozomark Posts: 2,069 Forumite
    is one (or two) of the above list big enough to cover the amount ? - if so put that down
  • Fred_Bear_2
    Fred_Bear_2 Posts: 392 Forumite
    Thanks again everyone. I think I have got the idea. I wonder how many criminals get tripped up by this question by telling the truth? :rotfl:
  • nzseries1
    nzseries1 Posts: 2,240 Forumite
    Fred_Bear wrote: »
    Thanks again everyone. I think I have got the idea. I wonder how many criminals get tripped up by this question by telling the truth? :rotfl:

    Exactly my thoughts too !!!!
    You're spelling is effecting me so much. Im trying not to be phased by it but your all making me loose my mind on mass!! My head is loosing it's hair. I'm going to take myself off the electoral role like I should of done ages ago and move to the Caribean. I already brought my plane ticket, all be it a refundable 1.
  • Robert_Sterling_3
    Robert_Sterling_3 Posts: 7,112 Forumite
    This money laundering check is not infallible.;)
    ...............................I have put my clock back....... Kcolc ym
  • withnell
    withnell Posts: 1,629 Forumite
    Fred_Bear wrote: »
    Thanks for your quick replies. In my daughter's case the money in her Nationwide account has come from lots of places e.g. student loan, grants, allowance from grandparent, earnings etc. So it didn't come from one lump sum. Any suggestion what she can state honestly but also comply with the anti-money laundering regulations?
    Written before dunstonh's reply.

    With that list I'd just put "Income"
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I always just put 'savings.' seems to work.

    It's a bit akin to the airline asking if you've got any explosives packed in your luggage.
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