What is SoW analysis?
SoW analysis is the process of understanding how a client’s overall wealth has been generated and accumulated over time, not just the origin of funds for a single transaction.
Traditionally, SoW checks have been treated as a one-time onboarding requirement. But as financial crime risks grow more complex and enforcement expectations rise, this approach is no longer sufficient.
Effective SoW analysis goes beyond declarations and documentation. It involves:
- Understanding key sources of income and asset accumulation
- Reviewing business interests and ownership structures
- Corroborating client disclosures using external and public-domain intelligence
- Assessing whether wealth patterns align with the client’s profile and activities
At its core, SoW analysis seeks to answer one fundamental question:
Does the client’s wealth make sense given who they are and what they do?
When applied thoughtfully, SoW analysis becomes a foundational element of proactive financial crime risk management, enabling institutions to identify inconsistencies and make more defensible risk decisions.
Author: Charu Goyal