<p>Scenario:  Crazy Rich Foreigner shows up in another country and wants to buy some very expensive goods/property. They purport to have massive wealth back home in their country's currency. They are also best friends with the king back home. How is that wealth verified/audited? How can we know they aren't just having their friend add some zeros to the end of their bank balance which they can then convert to dollars with regular exchange rate and buy up all the &quot;stuff&quot; in the other country?</p>
<p>I'm new to this type of economic thinking... so I may not be asking the question correctly... happy to have any clarity!</p>

CC BY-SA 4.0
2023-12-28T19:32:45.307Z
Hi! Who is doing the verification? A local bank getting a transfer from their bank back home?
Giskard
CC BY-SA 4.0
2023-12-28T20:12:38.443Z
You should ask this question on law.se or some accounting site wealth is not being verified by economists but by auditors/accountants/lawyers
1muflon1
CC BY-SA 4.0
2023-12-28T21:21:26.770Z
@Giskard yeah I dont know.. but if the institutions "back home" are corrupt, and inflating balances, what would stop them from just buying up mass assets in the another country? or maybe it's a silly question because the USA does that all the time (if the US needs more oil it can just "print it" via the Fed)
Nicholas Franceschina
CC BY-SA 4.0
2023-12-29T07:17:48.513Z
So your question is "why do banks trust one another, what is keeping one from gaming credit, how does banking work?"
Giskard
CC BY-SA 4.0
2023-12-29T07:20:26.027Z
Does this answer your question? [Banks are allowed to print money out of thin air. Black magic or what?](https://economics.stackexchange.com/questions/35715/banks-are-allowed-to-print-money-out-of-thin-air-black-magic-or-what)
Giskard
CC BY-SA 4.0
2023-12-30T18:36:56.797Z
Thanks guys... I appreciate the feedback... other links are interesting reading but not quite what I'm after.  I see now the this SE is more about the concepts of economics and not really appropriate for the question
Nicholas Franceschina
<foreign-exchange>
How is wealth of a foreign investor proven, validated, audited?
Nicholas Franceschina
# How is wealth of a foreign investor proven, validated, audited?

(Asked by: username_0 on 2023-12-28)

Scenario: Crazy Rich Foreigner shows up in another country and wants to buy some very expensive goods/property. They purport to have massive wealth back home in their country's currency. They are also best friends with the king back home. How is that wealth verified/audited? How can we know they aren't just having their friend add some zeros to the end of their bank balance which they can then convert to dollars with regular exchange rate and buy up all the "stuff" in the other country?

I'm new to this type of economic thinking... so I may not be asking the question correctly... happy to have any clarity!

**Tags:** foreign-exchange
> **Comments:**
> **username_1**: Hi! Who is doing the verification? A local bank getting a transfer from their bank back home?  
> **username_2**: You should ask this question on law.se or some accounting site wealth is not being verified by economists but by auditors/accountants/lawyers  
> **username_0**: @Giskard yeah I dont know.. but if the institutions "back home" are corrupt, and inflating balances, what would stop them from just buying up mass assets in the another country? or maybe it's a silly question because the USA does that all the time (if the US needs more oil it can just "print it" via the Fed)  
> **username_1**: So your question is "why do banks trust one another, what is keeping one from gaming credit, how does banking work?"  
> **username_1**: Does this answer your question? [Banks are allowed to print money out of thin air. Black magic or what?](https://economics.stackexchange.com/questions/35715/banks-are-allowed-to-print-money-out-of-thin-air-black-magic-or-what)  
> **username_0**: Thanks guys... I appreciate the feedback... other links are interesting reading but not quite what I'm after.  I see now the this SE is more about the concepts of economics and not really appropriate for the question  

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