What is proof of funds and why am I asked for it?

As it was announced the Fifth Anti-Money Laundering Directive was in effect starting January, 2020. At Lykke, compliance has always been at the center of our efforts. 

We are required to abide by certain laws and regulations that govern our business. As Lykke’s KYC and AML procedures were already in line with the requirements, the AMLD5 impact is limited to the introduction of a questionnaire to facilitate reporting obligations and the establishment of a country risk-rating approach.

Thus, using the country risk rating and the amounts to cash in/out we are obliged to request proof of funds along with a questionnaire. You have the questionnaire form incorporated in the app so you simply need to tick the necessary answer.

In simple words, a proof of funds document explains where the “money” from your fiat or crypto transaction originates from. This is to ensure that your funds came from a legitimate source, such as your salary, company profits, sale of your car, etc.

Here are some examples of valid proof of funds:

  • recent payslip from your employers
  • sale contract of a personal asset (a house, a car, a company, etc.)
  • bank statement (savings account extract, salary deposits, etc.)
  • Heritage / gift (copy of the will, notarized letter, etc.)
  • loan agreements
  • other supporting documents (a letter signed by a lawyer or a Notary Public, etc.)

Please do not worry! This is the standard process for many other platforms that comply with current regulations. 

Doing business in the right way and complying with applicable laws is the core of what we do to provide secure and trustworthy service here at Lykke.