Source of Funds & Red Flags
Understanding where the money really comes from
Source of Funds vs Source of Wealth
Source of Funds explains the origin of the specific money used in the transaction. Source of Wealth explains how the client built their overall financial position. Both must be plausible and documented for higher-risk clients.
Red flags in real estate
Be alert to:
- Cash payments or attempts to structure payments below thresholds
- Funds routed through multiple unrelated accounts
- Crypto-derived funds without clear traceability
- Inconsistent or evasive answers about the source of funds
- Reluctance to provide standard documentation
- Urgency to close without normal due diligence
Crypto-related concerns
Cryptocurrency proceeds require enhanced source-of-funds documentation: exchange statements, KYC evidence and proof of conversion through regulated venues.
Official sources for this module
Primary publications from SEPBLAC and the Spanish Tesoro underpinning the material above.
- TesoroPDFCatálogo de Indicadores de Riesgo — Inmobiliarias
Sector red flags — funding patterns, third-party payments and structuring signals.
- TesoroPDFCatálogo de Indicadores de Riesgo — Entidades de Pago, Cambio de Moneda y Dinero Electrónico
Cross-reference: when buyers fund through money remitters, bureaux de change or e-money, these indicators help contextualise the risk.
See the full list on the Sources page.