Origin of Funds Declaration: Essential Requirements for Palace Auctions Buyers
What is an Origin of Funds Declaration?
At Palace Auctions, we require all buyers to complete an Origin of Funds (SoF) Declaration in compliance with section 327 of the Proceeds of Crime Act 2002 (POCA).
This declaration ensures transparency and legal compliance in all our auction transactions.
Acceptable Sources of Funds – We accept the following funding sources, each requiring specific supporting documentation:
Professional and Employment Income
- Professional income or salary
- Required proof: Payroll letter or tax statement
- Current employment details required:
- Employer information
- Occupation
- Annual salary with supporting pay statement
Property and Investment Income
- Rental income
- Required proof: Valid rental agreement
- Proceeds from previous real estate sales
- Required proof: Copy of deed or bill of sale
Financial Institution Sources
- Bank or building society loans
- Required proof: Offer letter or loan agreement
- Savings
- Required proof: Bank statement
- Additional occupation details required
Family-Based Sources
- Family loans
- Required proof: Letter from lender detailing amount and repayment terms
- Family gifts
- Required proof: Letter from the gift-giver
Other Valid Sources
- Inheritance
- Required proof: Certificate of inheritance
- Donations
- Required proof: Deed or account statement for individual donations
International Funding Requirements.
For funds originating outside the UK, additional documentation is required:
- Detailed explanation of fund origination
- Complete financial flow information
- Country of origin
- Pass-through details
- Identity of all involved banking institutions
- Specific details for non-UK bank branches
Declaration Process
To complete your Origin of Funds Declaration:
- Fill in personal details
- Select appropriate funding source(s)
- Provide required supporting documentation
- Include international funding details if applicable
- Sign and date the declaration
- Note location of signing
Ensure your auction participation proceeds smoothly by preparing your Origin of Funds Declaration in advance. Contact Palace Auctions’ compliance team for guidance on documentation requirements.
Frequently Asked Questions
Q: When should I submit my Origin of Funds Declaration? A: Submit your declaration before participating in any auction activities.
Q: Can I have multiple funding sources? A: Yes, but each source must be documented separately with appropriate proof.
Q: What if my funding source isn’t listed? A: Contact Palace Auctions to discuss alternative funding sources and required documentation.