Short answer: source-of-funds reviews ask two things: how the money was earned and how it was moved to the investment. Common mistakes include a vague timeline, gifts without the donor’s source, multi-account transfers without records, and inconsistent names or dates. Mapping a timeline and aligning details early cuts requests for evidence.
Six common mistakes
| Mistake | Effect | What to do |
|---|---|---|
| Showing “wealth” without a build-up story | Demands for years of income or sale records | Explain step by step from income, business or asset sales |
| Gift without the donor’s source | The gift link is challenged | Prove the donor’s lawful source too |
| Cash or missing early records | Hard to close the loop | Support with tax returns, contracts, affidavits |
| Transfers through several accounts with no slips | Broken path | Keep bank evidence at every step |
| Inconsistent names, amounts or dates | Credibility drops | Full consistency check before filing |
| Hiding a refusal or old record | Worse than the record itself | Disclose honestly |
Suggested order
- Map the timeline from earning to outward transfer.
- Collect tax returns, contracts and bank records along that timeline.
- Plan the shortest provable transfer path.
- Have counsel do a full consistency review.
EB-5 is generally the strictest; Caribbean CBI and European residence also require a lawful source. Start organising before you even choose a programme.