Under AML considerations, which action helps establish the source of gifted funds?

• A. Accept donor's verbal confirmation
• B. Copy of donor's passport only
• C. Ignore if donor is family
• D. Request bank statements showing funds originate from their account

Answer: (D)

Under AML considerations, you must establish where gifted funds come from with verifiable documentation. Bank statements showing the funds originated in the donor’s account provide an auditable trail that confirms the donor had access to the money and that the funds were transferred to the recipient. This direct evidence of the source is far more robust than verbal confirmation, identity documents alone, or a family relationship, all of which do not prove where the money came from or that it’s clean funding. If the donor’s funds can be traced to their own account, it significantly reduces AML risk and supports the legitimacy of the gift.