Why is a proof of origin possibly required for deposits to my company custody account?

The need for proof of origin for deposits is not just a formal requirement but an essential part of money laundering prevention. Money laundering is a serious problem that can lead to illegal activities being concealed in the financial system. Financial institutions are therefore required by law to take measures to prevent such practices. A proof of origin helps us to verify the legitimacy of funds and identify potential risks at an early stage. Failure to comply with these requirements can result in severe penalties for financial institutions. We must ensure that all transactions comply with the applicable laws. The Money Laundering Act requires us to thoroughly check the origin of funds deposited in a custody account. These regulations apply not only to cash deposits, but also to transfers, even if they originate from another German bank account. Even if the transferring bank has already carried out a check, this does not release us from our obligation to carry out our own checks. Each institution must independently ensure that its processes comply with the legal requirements. Therefore, we also require proof if the money comes from another German bank account. Ultimately, our high security requirements are in the interest of all our corporate clients.