Proof of Source of Funds from Ukraine

Proof of Source of Funds from Ukraine for a Foreign Bank

A foreign financial institution may ask you to explain where the money came from and provide documents confirming the relevant transaction. Typical situations include:

• the money was received from the sale of an apartment or house in Ukraine;
• the property was sold many years ago;
• the original sale and purchase agreement has been lost;
• the notary who certified the transaction no longer practices;
• the documents remain in Ukraine while the client is abroad;
• the bank asks for proof of the source of a large transfer;
• it is necessary to confirm the source of accumulated savings;
• the funds moved through several bank accounts;
• some documents exist only in archives;
• the foreign bank has requested additional explanations regarding the source of funds.

If the funds were received from the sale of real estate, the following may be used as supporting evidence:

• the sale and purchase agreement;
• a duplicate of the notarial document;
• an archival copy or extract;
• documents confirming ownership before the sale;
• registry information regarding the property;
• bank statements;
• payment documents;
• documents confirming receipt of funds from the buyer;
• documents confirming subsequent movement of the funds;
• a written explanation from the client regarding the source of funds.

Not every bank requires the same set of documents. Therefore, it is advisable to first obtain the specific request from the financial institution and only then prepare the document package.

Benefits of Working with Prikhodko & Partners

We help:

• analyze the foreign bank’s request;
• reconstruct the documentary history of the transaction;
• locate the notary or determine where the notary’s documents are stored;
• obtain notarial and archival materials;
• find registry confirmations of the transaction;
• analyze bank statements and the movement of funds;
• reconstruct a logical chain showing the origin of the money;
• prepare requests and applications;
• prepare a package of documents for a foreign bank;
• organize legal work remotely for a client who is abroad.

Where to Start When Searching for an Old Sale and Purchase Agreement

First of all, it is necessary to establish:

• when the transaction was concluded;
• which real estate property was sold;
• who the seller and buyer were;
• which notary certified the agreement;
• in which locality the transaction was formalized;
• whether any copies of the documents have been preserved by the parties;
• whether information about the transaction is available in registers;
• through which bank accounts the funds were transferred.

After that, it is determined which person or institution should be contacted to obtain the document or confirmation of the notarial act.

Can a Duplicate of a Lost Notarial Agreement Be Obtained?

Ukraine provides for the possibility of issuing a duplicate of a lost notarial document to persons in respect of whom or on whose behalf the relevant notarial act was performed. Depending on the circumstances, obtaining the document may require establishing:

• which notary certified the agreement;
• whether the notary continues to practice;
• where the notarial file is stored;
• who is entitled to receive a duplicate;
• which documents the applicant must provide;
• whether it is possible to act through a representative.

What to Do If the Notary No Longer Practices

If a notary has ceased practicing, this does not mean that documents relating to transactions certified by that notary should disappear. In such a case, it is necessary to determine where the documents were transferred. Depending on the circumstances, they may be stored:

• in the relevant state notarial archive;
• with another notary to whom the documents were transferred;
• with a territorial authority or another authorized institution;
• in an archival institution;
• in another place of storage designated after the notary ceased practicing.

A lawyer can determine the appropriate search route, prepare the necessary request, and check which documents may be issued to the specific applicant.

Which Registry and Archival Documents May Help

The following may be used for analysis:

• information about ownership rights to the property;
• archival registration materials;
• information about the transfer of ownership;
• copies of decisions and registration documents;
• notarial registry information;
• archival documents relating to the real estate property;
• technical documentation;
• other materials connected with the history of the property.

Once the registration and notarial history has been established, it is possible to determine which additional evidence is still needed to respond to the foreign bank’s request.

How to Confirm the Movement of Funds After the Sale of Property

Proof that the real estate was sold may not be sufficient for a foreign bank. For example:

• the apartment was sold for a certain amount;
• the money was credited to a Ukrainian bank account;
• it was then transferred to another bank;
• part of the funds was converted into another currency;
• the money was later transferred to a foreign account;
• several years passed between the sale and the transfer abroad.

In such a situation, it may be necessary to reconstruct not only the agreement, but the entire available chain of financial transactions. For this purpose, the following may be analyzed:

• bank statements;
• payment orders;
• receipts;
• documents relating to currency exchange transactions;
• transfers between the client’s own accounts;
• international bank transfers;
• dates and amounts of transactions;
• other financial documents.

A simple explanation such as “this is money from the apartment” may not be sufficient.

How to Prepare a Source of Funds Package for a Foreign Bank

It is necessary to prepare the most consistent package possible:

1. a document confirming the original ownership of the property;
2. a document confirming its sale;
3. confirmation of the transaction amount;
4. documents confirming receipt of the funds;
5. bank statements;
6. confirmation of subsequent transfers;
7. where necessary, a written explanation of the source of funds;
8. translations and certifications in the format required by the bank.

The final decision as to whether such a package is sufficient is made by the foreign financial institution in accordance with its own verification procedures.

The main task is not simply to provide a single agreement, but to build a clear and consistent documentary history: from the acquisition of the property to its sale and the subsequent movement of the funds.

Which Other Sources of Funds Can Be Confirmed

It may also be necessary to confirm the source of funds if they were received from:

• the sale of an apartment, house, or land;
• the sale of a vehicle or other property;
• an inheritance;
• a gift;
• business income;
• dividends;
• the sale of corporate rights;
• repayment of a loan;
• income accumulated over several years;
• another lawful transaction.

A separate evidentiary approach is developed for each source.

What a Foreign Bank May Require

The bank may determine:

• the list of required documents;
• the period for which bank statements are needed;
• whether an explanation of the economic purpose of the transactions is required;
• the required form of transaction confirmation;
• the language of the documents;
• whether a notarized translation is required;
• whether an apostille or another form of certification is required;
• the format for submitting the documents;
• additional information about the seller or buyer.

It is not advisable to immediately translate and certify every document that has been found without first checking the bank’s requirements. A legally and financially coherent package should be prepared first, after which its final format can be determined.

Can Documents Be Restored While You Are Abroad?

Legal work can be started remotely:

• provide the lawyer with available scans and photographs of documents;
• provide information about the old transaction;
• provide the foreign bank’s request;
• identify the notary and the real estate property;
• prepare the necessary requests;
• organize the collection of documents through a representative;
• analyze bank statements remotely;
• prepare the final document package.

This is especially relevant for Ukrainians who permanently reside in EU countries, the United Kingdom, the United States, Canada, or other countries.

Cost of Legal Assistance

The cost is affected by:

• the year in which the transaction took place;
• the type of property sold;
• whether a copy of the agreement is available;
• whether the notary is known;
• whether the notary still practices;
• the need for archival searches;
• the volume of registry documents;
• the number of banking transactions;
• the period for which the movement of funds must be reconstructed;
• the requirements of the specific foreign bank;
• the need for representation in Ukraine.

In one case, obtaining a duplicate of an old agreement may be sufficient. In another, it may be necessary to reconstruct the notarial, registry, and banking history over several years.

Common Situations When Confirming the Source of Funds

Conclusion

Proof of source of funds from Ukraine for a foreign bank requires a consistent documentary history. If the sale and purchase agreement has been lost or the notary has ceased practicing, it is necessary to determine where the documents are stored, obtain available notarial, archival, and registry confirmations, and match them with the relevant banking transactions. The more completely the path of the funds from the original source to the current account is documented, the clearer the package will be for the bank’s financial review.

Is a foreign bank asking you to confirm the source of funds from the sale of property in Ukraine, but the documents have been lost? Submit a request on the Prikhodko & Partners Law Firm website. A lawyer will help recover notarial and archival materials, review the banking history, and prepare a document package for the bank.