bank wants to know how our liquidity is now what must I provide

Liquidity is part of the ongoing customer due diligence

The bank asks this as part of the ongoing customer due diligence, not because there is anything wrong with the relationship. Under the Anti-Money Laundering and Terrorist Financing Act, a bank must keep a client's risk profile current, and the current liquidity position is a common part of that. For companies with fluctuating cash flows — seasonal revenue, long-term projects, large inventory positions — the bank wants to see that the enterprise can meet its obligations in the short term. That is not a credit assessment such as with a credit assessment, but a snapshot: how much freely available funds are there, and how does that relate to short-term liabilities.

What you can usually provide: a recent overview of liquid funds, the current account balance at the bank(s) where your client is, and possibly a short forecast of cash flow for the coming months. Some banks also ask about the number and type of banking relationships, which overlaps with the question at which banks the enterprise maintains accounts. If you do not have a current figure available, it is more common to cite the last established annual figures as a basis than to provide an estimate — compare this with the question whether the annual accounts have been filed, where the same applies: the filed document is the only hard evidence.

Where this follows from: the client due diligence under the Wwft

The obligation to conduct ongoing customer due diligence is set out in the Anti-Money Laundering and Terrorist Financing Act. This act requires the bank not only at the beginning but also during the relationship to continue to assess a client's risks, and a liquidity question fits into this periodic updating. There is no separate article that mandates a liquidity figure; the bank supplements its own risk model with this.