Lexicon

Source of Funds (SoF)

Evidence of where a customer's money comes from; requested at risk thresholds under AML rules.

The evidence trail behind a customer's money: payslips, bank statements, sale documents — requested when deposits or losses cross risk thresholds. It operationalises AML: identity says who the customer is; source of funds says whether their spending makes sense.

It is also where compliance meets customer friction hardest, since the request lands mid-relationship rather than at signup. Licensed operators must hold the line regardless — published UK enforcement actions repeatedly cite six-figure losses accepted without a single source-of-funds document.

Source-of-funds is the moment compliance stops being a checkbox and becomes an investigation: payslips, bank statements, sale contracts — evidence that the money being gambled has a legitimate origin. British operators conduct these checks under AML obligations and the affordability expectations layered on by the 2023 White Paper programme; the threshold question — how much play before evidence is demanded — is one of the most contested lines in the regime.

The check sits at the intersection of two regulatory goals that pull the same direction: anti-money-laundering wants provenance, player protection wants affordability. The same bank statement answers both. The friction cost is real — document requests interrupt play and drive some customers offshore — which is why the calibration is argued about in consultations rather than settled.

The term earns its glossary entry because it is where players most often collide with regulation in person: an account restricted pending documents is usually a source-of-funds hold. In this atlas it appears in the United Kingdom profile and the responsible-gambling comparison, because Britain has pushed the practice furthest — and because the rest of the regulated column tends to follow British compliance practice after a lag.

Frequently asked questions

When does a source-of-funds check happen?
When deposits or losses cross the operator's risk thresholds, or when monitoring flags a pattern inconsistent with what is known about the customer. There is no universal trigger figure — operators set risk-based thresholds under regulatory expectations.
What documents count as evidence?
Payslips, tax returns, bank statements, audited accounts, sale or inheritance documents — anything establishing that the funds have a legitimate, sufficient origin. Screenshots and informal declarations generally do not survive a regulator's file review.
Is source-of-funds the same as affordability?
Related but distinct: source-of-funds asks where the money came from (an AML question); affordability asks whether the customer can sustain the losses (a player-protection question). British practice increasingly runs them together, since the same evidence serves both.
Can a player refuse?
Yes — and the licensed operator must then restrict or close the account, because continuing to take deposits it cannot explain is itself a compliance failure. This is a structural difference from unlicensed sites, which rarely ask at all.
Do other countries run affordability checks like Britain's?
Elements travel: the Netherlands and Germany cap deposits by statute rather than assessing affordability case-by-case, which reaches a similar end by a blunter route. Britain's evidence-based model remains the deepest — and the most-watched experiment for regulators considering the same step.

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