Fact or fiction?
The regulations say that I must always evidence Sources of Wealth
Fiction: The regulations don’t require you to always provide evidence of a client’s Source of Wealth. It’s a risk based approach. For higher risk clients, you might want to do some research or ask for proof. For example, if someone claims to come from a wealthy family, you could verify that online. But for a normal risk client, it’s usually unnecessary to ask for evidence of their savings if nothing about the situation raises concerns. The key is to use your judgment and focus on the clients who present a higher risk.
The regulations say I must always perform open source checks on clients (for example, Google or other internet searches.)
Fiction: The regulations don’t require it, but it is highly advisable, especially for higher risk clients. Reviewers often do their own online searches before a review, and it’s a free, easy way to learn a lot about your clients. There’s a high amount of useful information available online, so it can be a valuable part of your due diligence.
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