What is the difference between source of funds and the origin of your assets?
In short: Paucitas substantiates both questions, but they are different questions. A source of funds request concerns one specific payment; the origin of your assets concerns how your whole holding was built up over the years.
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What Paucitas does
On a source of funds question we trace one specific payment: which amount, from which address, bought with which money and when. On an origin question we reconstruct the build up of the holding as a whole, across years and across platforms. The step that is most often underestimated is the distinction itself: people answer the wide question when the narrow one was asked, and the file becomes harder to read rather than easier.
Reading the request carefully therefore comes first. A UK bank asking about one incoming transfer wants the narrow answer, while HMRC asking about a tax year wants the wide one.
On a source of funds question we trace one specific payment: which amount, from which address, bought with which money and when. On an origin question we reconstruct the build up of the holding as a whole, across years and across platforms. The step most often underestimated is the distinction itself, because people answer the wide question when the narrow one was asked.
What you supply
You supply Paucitas with the question exactly as you received it, because the wording says which of the two it is. Beyond that, the exports, the addresses and the bank statements that belong to the period concerned.
Alongside the request itself we need the exports, the addresses and the bank statements for the period concerned. For a source of funds question that period can be a single week; for an origin question it is usually several years.
What you receive
For a question about one payment you receive from Paucitas a short report with the route of that payment, the source references and a conclusion in plain language. For a question about the origin of your assets you receive the full file with a timeline over the whole period.
Both are built on the same verification, so a narrow report can later be widened without the work being done twice.
For readers in the UK the practical rule is simple. A bank asking about one incoming transfer wants the narrow source of funds answer. HMRC asking about a tax year wants the wide one. Both rest on the same verification, so a narrow report can later be widened without the work being done twice.
A short report on one payment runs to a few pages: the route, the source references and a conclusion in plain language. The wide report carries a timeline over the whole period and the same source discipline per line.
How does an expert verify the origin of assets?
Paucitas explains: verification is not an opinion but a series of checks someone else can repeat. We start at the end point, the pound in your bank account, and work backwards: the payout from the exchange, the sell order, the address the tokens came from, the earlier movements between your own addresses and finally the first purchase with money from your bank account.
At each step we test three things: does the blockchain transaction match in amount, time and direction; does the line in the exchange export match it; and can the address be attributed to you. Where a link is missing, that goes into the report as an open point, with the reason. That lets a bank, civil proceedings or a regulator follow the reasoning without having to take our word for it.
Which of the two substantiations is sufficient in your case is decided by the party asking the question.
How to get started
You contact Paucitas and send the question that was put to you. We will tell you which of the two it is and what that means for the scope. A short message through the contact page is enough.
Send the request as you received it and we will tell you which of the two it is. That single reading usually saves more time than anything else in the process.
If you are unsure which you have been asked for, forward the wording. Guessing costs more than asking, and the wrong answer tends to invite a second and sharper question.
Would you like to know what this means for your situation? Ring us on +31 20 244 5774, day or night, or fill in our contact form and you will hear from us within 1 to 3 hours. We answer emails within 24 hours, usually the same day. The intake is free and without obligation.
Do you have a question about your own situation?
Feel free to get in touch with Paucitas. Paucitas can be reached by phone 24/7, including evenings and weekends. Through the contact form we usually reply within 1 to 3 hours, and we answer e-mail within 24 hours.
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Frequently asked questions
About your case
What does source of funds mean?
Paucitas explains: it is the question where one specific payment came from: the amount, the address it came from, what it was bought with and when.
What does the origin of assets mean?
Paucitas explains: it is the question how your holding as a whole was built up over the years, across platforms and wallets.
Which of the two do I need?
Paucitas advises: read the request. A question about one transfer needs the narrow answer; a question about a year or about your holdings needs the wide one.
How does an expert verify the origin of crypto assets?
Paucitas does this by working back from the pound in the bank account to the first purchase and testing, at each step, the blockchain transaction, the exchange export line and the attribution of the address.
Who asks about source of funds?
Paucitas: firms covered by the Money Laundering Regulations 2017, such as banks, conveyancers and cryptoasset businesses. They must carry out customer due diligence and, where needed, establish the source of the funds used in a transaction.
Is a source of funds request an accusation?
Paucitas: no. It is a legal duty of the firm, not a judgement about you. A large deposit coming from crypto is, for many firms, a standard reason to ask where the money came from.
How long does a source of funds investigation by Paucitas take?
Paucitas: from the same day to around two weeks, depending on the case. Every investigation is tailored: you receive a quote in advance that we go through with you, with no surprises afterwards.
From Amsterdam, for the whole of the UK
Everything can be done fully online. Prefer to meet in person? You are very welcome at our office in Amsterdam, by appointment.
Paucitas is an independent expert firm based in the Netherlands that, for clients across the UK, investigates investment fraud and crypto fraud, establishes the origin and legitimacy of crypto assets and prepares expert reports for legal proceedings and compliance.
Your own situation
If you are reading this, you probably have a question about your own situation. That is exactly what Paucitas does.
The first step is contact by phone. You can book that call by phone or through the contact form, so you do not have to wait. In the call we look together at what can factually be established in your case and what Paucitas can examine for you.