Source of Funds

SOW/SOF/KYT Compliance Support

When platforms or institutions request explanation of fund origins, staging paths, or risk exposure, Delta & Capital helps organize SOW/SOF frameworks, map chain data to bank statements, and resolve compliance flags.

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Applicable Scenarios

  • Exchange compliance flags request formal SOW or SOF proof within a deadline
  • Bank freezes fiat withdrawals and demands tax returns or token source audit
  • On-chain KYT alerts require proof of non-association with sanctioned wallets or mixers
  • High net-worth OTC, early staking, or private sale yields lack bank statements
  • Frequent hopping across multiple wallets and chains creates a cluttered flow track

Support Scope

  • Building SOW/SOF audit framework dossiers aligned with global AML standards
  • Mapping digital asset hashes to real-world fiat transfers and invoices
  • Identifying risk sources and calculating passive taint percentages
  • Reconstructing clear fund lifecycle timelines to answer auditing doubts
  • Drafting formal Statements of Facts and providing third-party forensic reports

SOW, SOF & KYT Clarifications

In institutional compliance reviews, the requirements for these three pillars differ:

SOW

Source of Wealth

  • Concept: How your overall wealth was legally generated over your lifetime.
  • Proofs: Employment contracts, payroll history, dividend payouts, tax receipts, property inheritance docs.

SOF

Source of Funds

  • Concept: Where the exact cash/assets used for this transaction originated.
  • Proofs: Recent bank statements, fiat wire slips, exchange purchase receipts, loan agreements.

KYT

Know Your Transaction

  • Concept: Verification that on-chain transfer paths avoid illicit/sanctioned entities.
  • Proofs: Message signatures showing wallet ownership, forensic flowcharts, AML scoring reports.

Required Compliance Artifacts

Compliance audit relies entirely on objective evidence. We recommend having these core proofs ready:

  • Fiat Gateway Slips: Local P2P platform invoices, bank wire receipts, counterparty verifications.
  • Wealth Declarations: Income tax returns, business dividends ledger, salary statements, home deeds.
  • Exchange Statements: CSV files of trade histories, deposits, and withdrawal records.
  • Wallet Statements: Ownership statement of all private wallets, declaring they are self-custodied.