₦airaland Forum

You receive a large payment into your bank account.

Then your bank contacts you.

“Please provide the source of funds.”

For some Nigerians, the question can feel intrusive.

You may wonder why a bank needs to know where your own money came from.

The answer is largely connected to financial regulations, customer verification and efforts to prevent money laundering and other financial crimes.

Banks are expected to know their customers
Banks do not simply open accounts and ignore what happens afterward.

Financial institutions are required to conduct customer due diligence and monitor transactions under Nigeria’s anti-money-laundering framework.

The Central Bank of Nigeria’s Customer Due Diligence Regulations 2023 require banks and other financial institutions to implement procedures for understanding their customers and managing financial crime risks.

That means unusual activity can trigger additional questions.

What can make a transaction look unusual?
A transaction may attract additional attention when it is significantly different from the normal activity on an account.

For example, someone who normally receives a monthly salary may suddenly receive a very large transfer.

That does not automatically mean the money is illegal.

It simply means the bank may need more information to understand the transaction.

The same can apply to frequent large deposits, international transfers or transactions that do not appear consistent with the customer’s known activities.

What does “source of funds” mean?
Source of funds simply means where the particular money involved in a transaction came from.

It could be:

Salary.

Business income.

Payment for goods or services.

Property sale.

Investment proceeds.

Loan proceeds.

Inheritance.

Gift.

A legitimate source should generally be supported by appropriate evidence when the bank requests it.

For example, a salary may be supported by a payslip or employment records, while a business payment may be supported by an invoice, contract or other relevant documentation.

The exact documents required can depend on the circumstances.

Is the bank accusing you of a crime?
Not necessarily.

A request for information about the source of funds does not by itself mean the bank has concluded that a customer has committed an offence.

Banks have compliance responsibilities, and transaction monitoring can result in questions being asked before the institution understands the nature of a transaction.

The important thing is to provide truthful information and genuine supporting documents.

What happens if you cannot explain the money?
Ignoring the bank’s request may create additional problems.

Depending on the circumstances and applicable procedures, the bank may place restrictions on an account or transaction while it carries out necessary checks.

That is why customers should respond through official banking channels rather than ignoring compliance requests.

If the transaction is legitimate, keep documents that can establish how the money was obtained.

Be careful with your explanation
Do not invent a story simply because you think it will satisfy the bank.

If the money came from a business transaction, say so.

If it was a loan, provide the relevant evidence.

If someone transferred money to you, be able to explain the relationship and purpose of the payment where appropriate.

False documents or misleading explanations can create a much bigger problem than the original bank inquiry.

What should you do when your bank asks?
First, confirm that the request genuinely came from your bank.

Do not send sensitive banking information to an unknown person claiming to work for a bank.

Contact the bank through its official customer-service channels if you are uncertain.

Then provide accurate information and legitimate documents relevant to the transaction.

Keep copies of what you submit.

If you believe your account has been restricted unfairly or your complaint has not been resolved, use the bank’s formal complaint process and escalate through the appropriate regulatory channels where necessary.

The bigger picture
Your bank asking where your money came from does not automatically mean you have done anything wrong.

It is part of a financial system designed to identify unusual transactions, understand customer activity and reduce the risk of money laundering and other financial crimes.

The safest approach is simple:

Know where your money came from. Keep evidence. Tell the truth. And never share sensitive information with someone whose identity you have not verified.

Source: https://yaroinsider.ng/why-bank-asks-where-your-money-came-from/

Money and security of it is very important

Well, the banks use predictive analysis in algorithms to detect and check which transactions are valid or suspicious.

For example, if your highest transactional amount is ₦50, 000 and your account received a credit of ₦5,000,000, your account will be flagged by the algorithms. Then sometimes, the bank may post a temporary PND restrictions on your account and then write you an email or call you to confirm source of funds.

If you have experienced it, don't panic. If your money is legit, simply carry relevant documentation of the transaction to the bank. Fraud analysts will investigate properly. If it is legit, the bank will remove the PND restrictions on your account.

Huge transfer triggers financial services security.

Kidnapping, fraudulent and hacking .

The fear of money laundering and keepnaping ransom

yarofearless:
Source: https://yaroinsider.ng/why-bank-asks-where-your-money-came-from/

Money laundary for kidnappers etc

If I receive an unusually large amount of money, only a small fraction goes to the bank. The rest is kept in my non-custodial crypto wallets.
Not because the money isn't legit, but I value total control, privacy and peace of mind.

This kind of topic annoys me. Nigeria is only good at forming 'workings' for eye service sake.

All the scrawny looking yahoo boys who buy cars and properties worth hundreds of millions, and other political acolytes, drug dealers, criminals of all hues, and other nonentities who have billions of naira in their accounts and make transactions in hundreds of millions routinely, do their banks ever really care to ask bout the "source"?

These useless banks cannot suddenly start pretending to be following CBN compliance because one Kafayat or Okoro somewhere received a sudden inflow of a mere N5 million.

This question is actually meant for the poor...

turawaa:
This question is actually meant for the poor...

Is that the reason U replied to the question ❓

Person wey never chop chicken for compound wey em dey live for longtime, if em come one day buy goat kill chop landlord no go suspect am?

TheStoriesOfMan:
Well, the banks use predictive analysis in algorithms to detect and check which transactions are valid or suspicious.

For example, if your highest transactional amount is ₦50, 000 and your account received a credit of ₦5,000,000, your account will be flagged by the algorithms. Then sometimes, the bank may post a temporary PND restrictions on your account and then write you an email or call you to confirm source of funds.

If you have experienced it, don't panic. If your money is legit, simply carry relevant documentation of the transaction to the bank. Fraud analysts will investigate properly. If it is legit, the bank will remove the PND restrictions on your account.

Not always.

I once sold a domain for $200 about some years ago, payout was 187 or so.,I told the registrar to send it to my Nigerian Zenith bank naira account which was a big mistake because that was the first time I knew I had an account officer. He called me to come to the bank and I went with confidence since everything was legit.

He asked me to provide source of funds, I sent him the email I got from the sale, sent him confirmation from the registrar. Asked him to Google the registrar and see that everything is legit after all the sender details will show that it's from the registrar and everything is legit.

He called after some days and said the bank (fraud analyst team like you said maybe) rejected the proof I sent. I then told them to return the money back to the registrar and I collected I contacted those ones to send it to my PayPal account.

I use GTB and Zenith have never received such a message from GTB, except from Zenith Bank. This happened when foreign funds earned from my subscription-based SaaS platform was credited to my account through a payment gateway called Paddle.

I received a call from their head office, explained the source of the funds, and sent them the invoice from Paddle. The issue was resolved within an hour. Since then, I have never experienced such an issue with Zenith Bank again.

telim:
I use GTB and have never received such a message from them.

I remain loyal to you sir telim..


Respect.

telim:
I use GTB and have never received such a message from them.

Na fintech banks dey ask that mumu questions pass. Happy new month sir

I rather prefer they contact me than freezing my account. The process go long. Sometimes even after you have resolved with them, it will take time to unfreeze your account. As far as you don't have any hidden agenda, visit them. If possible with a lawyer in case there's more to it.

Okay okay okay okay okay okay

When the bridge comes, I will cross it. For now, I’m good with my almost millions of Naira trickling monthly into my accounts. It seems the banks raise their ears mostly for foreign currency deposits.

Hedonisco:
This kind of topic annoys me. Nigeria is only good at forming 'workings' for eye service sake.

All the scrawny looking yahoo boys who buy cars and properties worth hundreds of millions, and other political acolytes, drug dealers, criminals of all hues, and other nonentities who have billions of naira in their accounts and make transactions in hundreds of millions routinely, do their banks ever really care to ask bout the "source"?

These useless banks cannot suddenly start pretending to be following CBN compliance because one Kafayat or Okoro somewhere received a sudden inflow of a mere N5 million.

Na see finish dey mostly cause this thing. Nigeria is not a country for honest people. Banks are even the ones protecting and shielding them. I still believe some of these banks are a front for money laundering and fraud. Only God knows how much bank executives have scammed people of

Especially moniepoint

PlutoPJ:
Na fintech banks dey ask that mumu questions pass. Happy new month sir

If any bank call me because of the money deposit into my bank account, i will insult hell out of them. When the account was empty, did they managed to check on me and ask why the account is empty?

Until you wake up to a 404 page

BannedUser:
If I receive an unusually large amount of money, only a small fraction goes to the bank. The rest is kept in my non-custodial crypto wallets.
Not because the money isn't legit, but I value total control, privacy and peace of mind.

With this kind of mentality, that account would remain empty for a while

Smartjeezy01:
If any bank call me because of the money deposit into my bank account, i will insult hell out of them. When the account was empty, did they managed to check on me and ask why the account is empty?

Egbon show the way. SAAS go de alright for me too oo

telim:
I use GTB and Zenith have never received such a message from GTB, except from Zenith Bank. This happened when foreign funds earned from my subscription-based SaaS platform was credited to my account through a payment gateway called Paddle.

I received a call from their head office, explained the source of the funds, and sent them the invoice from Paddle. The issue was resolved within an hour. Since then, I have never experienced such an issue with Zenith Bank again.

Oxygen1998:
Until you wake up to a 404 page

I guess you don't know what a non-custodial crypto wallet is. Ask ChatGPT for help. I'm not your teacher.

telim:
I use GTB and Zenith have never received such a message from GTB, except from Zenith Bank. This happened when foreign funds earned from my subscription-based SaaS platform was credited to my account through a payment gateway called Paddle.

I received a call from their head office, explained the source of the funds, and sent them the invoice from Paddle. The issue was resolved within an hour. Since then, I have never experienced such an issue with Zenith Bank again.

Hi chief, I saw a smart and expert comment you made in an old thread and I have been trying to quote you and ask a question but NL bot keeps deleting it and temporarily banning me. I don't even know I should structure the question now. Pleasw I have sent you an NL email request.

frank417:
Hi chief, I saw a smart and expert comment you made in an old thread and I have been trying to quote you and ask a question but NL bot keeps deleting it and temporarily banning me. I don't even know I should structure the question now. Pleasw I have sent you an NL email request.

Telim this is the thread I was talking about here. You my mail request? NL bot no allow me ask here on on the old thread.
https://www.nairaland.com/5534645/email-marketing-worth-investing

frank417:
Telim this is the thread I was talking about here. You my mail request? NL bot no allow me ask here on on the old thread.
https://www.nairaland.com/5534645/email-marketing-worth-investing

Replied back to your email request.

telim:
Replied back to your email request.

Thank you. i have sent you a mail.

frank417:
Thank you. i have sent you a mail.

telim . good day chief. please did you get the mail? thank you.

telim:
Replied back to your email request.

good day chief, please have you seen my email?