Source of funds
Proof of Funds shows that money is available. Source of Funds explains where the money actually used came from — the latter is the relevant concept for source-of-funds checks.
The two are often conflated in practice but mean different things:
Only Source of Funds is the subject of the source-of-funds check. A bank statement showing sufficient funds therefore does not discharge the duty — it is Proof of Funds for as long as the origin of the money is not apparent from it.
Legal basis: FATF Recommendations; Ley 10/2010, Art. 6
Practical tip: Buyers and their advisers often supply a funds certificate unprompted and consider the matter closed — in international dealings Proof of Funds is the more familiar term. So label the request explicitly as evidence of origin, or you will receive the same document twice.
AI-assisted tools were used in preparing these FAQs; the content was subsequently reviewed and approved by the Doxario editorial team. They reflect the general state of the law as at the review date shown and do not constitute individual legal or tax advice. To assess your own case — particularly where complex structures are involved (offshore companies, trusts, foundations, communities of heirs) or where the new EU rules leave room for doubt — we recommend consulting a lawyer specialising in Spanish anti-money-laundering law and, on tax questions, a tax adviser. Doxario is a deal management and compliance platform for estate agents in Spain, operated by Blue Pepper S.L.; we therefore have an economic interest in the solutions described in these FAQs. Doxario accepts no liability for decisions taken solely on the basis of these FAQs.
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