Source of Funds for Crypto Wealth: What Swiss Banks Ask Before Onboarding

By Thomas Contin, Managing Partner

More and more Swiss banks accept clients whose wealth comes wholly or partly from crypto-assets. Under the Anti-Money Laundering Act and FINMA's rules, however, a bank must clarify the economic background of assets that present higher risks, and crypto-assets usually fall into that category. In practice, the onboarding succeeds or fails on the source of funds file.

What the bank wants to understand

Source of wealth is the story of how the client built their overall wealth. Source of funds is the narrower question of where these specific assets come from. For crypto, the bank wants to see an unbroken chain: the fiat money used to buy, the platforms involved, the wallets that held the coins over time, and the transfer that brings them to the bank.

The documents that usually make the difference

Statements from the exchanges where the assets were bought, ideally covering the whole holding period. Bank statements showing the original fiat transfers to those exchanges. Tax returns in which the crypto-assets were declared for wealth tax. For mining, staking or business income, the contracts, invoices or accounts that explain it.

Proof that the client controls the wallets: a signed message or a small test transfer from the address to be used. A list of the addresses involved, with the period of use.

Why a blockchain analysis report helps

Exchange statements stop where the coins leave the exchange. A blockchain analysis report closes the gap: it follows the funds on-chain from the exchange withdrawals to the wallet that will transfer to the bank, and screens every address involved against sanctions lists and known illicit services. The bank's compliance team can verify each step independently, because every transaction is public.

The report should state its method, its sources and its limits. A report that only says the funds are clean, without showing the path, rarely convinces a compliance officer.

Common obstacles

Holdings bought years ago on platforms that no longer exist. Funds that passed through mixers, privacy protocols or high-risk services. Gaps where coins moved between many self-hosted wallets. Undeclared holdings that create a tax question before a compliance one. Each of these can usually be addressed, but only if it is explained before the bank discovers it.

Conclusion

A well-prepared file shortens onboarding from months to weeks and reduces the risk of a refusal that is then recorded internally. Advisorn prepares source of funds files for crypto wealth, combining legal analysis with blockchain analysis reports that banks' compliance teams can verify.