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How to Configure KYC Requirements and Investor Accreditation

This guide provides step-by-step instructions for administrators on how to configure Know Your Customer (KYC) requirements, investor accreditation standards, and other compliance rules on the WhiteLabel Community Deals Platform.

Table of Contents​

  1. Overview
  2. Prerequisites
  3. Accessing Compliance Settings
  4. Configuring KYC Requirements
  5. Setting Up Approval Workflows
  6. Configuring Trading & Transfer Rules
  7. Setting Offering Configuration Rules
  8. Configuring Payment Options
  9. Best Practices
  10. Troubleshooting

Overview​

Compliance is a critical aspect of any investment platform. The WhiteLabel Community Deals Platform provides extensive configuration options to ensure your platform meets regulatory requirements while providing a secure environment for investors and issuers. This guide covers:

  1. Setting up KYC verification requirements
  2. Configuring approval workflows for deals and transfers
  3. Establishing trading and transfer rules
  4. Setting up offering configuration parameters
  5. Managing payment options

Properly configured compliance settings help protect your platform from regulatory issues while ensuring a smooth experience for legitimate users.

Prerequisites​

Before you begin, ensure you have:

  • Admin access to the WhiteLabel Community Deals Platform
  • Understanding of applicable regulations in your jurisdiction
  • Knowledge of your target market's KYC and accreditation requirements
  • Familiarity with securities laws relevant to your offerings

Accessing Compliance Settings​

  1. Log in to your admin account and navigate to the Admin Dashboard.

  2. Access Platform Settings by clicking on "Platform Settings" in the left sidebar navigation menu.

  3. Navigate to the Compliance tab by clicking on "Compliance" in the tab navigation at the top of the Platform Settings page.

  4. You'll now see the Compliance Settings interface with several sections:

    • KYC & Verification
    • Approvals
    • Trading & Transfers
    • Offering Configuration
    • Payments

Configuring KYC Requirements​

The KYC & Verification section allows you to set up identity verification requirements for platform users:

  1. Require KYC for Investors:

    • Toggle this setting ON to require all investors to complete KYC verification before investing
    • Toggle OFF to allow investments without KYC (not recommended for regulated securities)
    • When enabled, users must complete KYC before investing in any deal

  2. Enable KYC Verification System:

    • Toggle this setting ON to activate the platform's integrated KYC verification flow
    • This enables the automated identity verification process for users
    • When disabled, you'll need to manually verify users or integrate with an external KYC provider

  3. Allow Transfers for Unverified Users:

    • Toggle this setting ON to permit token transfers even if KYC is not complete
    • Toggle OFF to restrict transfers to only KYC-verified users
    • Consider regulatory requirements when configuring this setting

  4. Configure KYC Provider (if applicable):

    • If using an external KYC provider, enter the necessary API credentials
    • Set verification levels and requirements
    • Configure callback URLs and webhook endpoints

Setting Up Approval Workflows​

The Approvals section allows you to configure how deals and transfers are approved:

  1. Require Transfer Agent Approval:

    • Toggle this setting ON to require Transfer Agent approval for P2P trades
    • When enabled, all peer-to-peer trades must be reviewed and approved by a Transfer Agent
    • This adds an additional compliance layer to secondary market transactions

  2. Require Broker Approval for Offerings:

    • Toggle this setting ON to require Broker role approval for new offerings
    • When enabled, all new deals must be reviewed and approved by a user with the Broker role
    • This ensures regulatory compliance review before deals go live

  3. Auto-Approve P2P Transfers:

    • Toggle this setting ON to automatically approve transfers below a certain threshold
    • When enabled, small transfers can proceed without Transfer Agent review
    • This streamlines the process for low-risk transactions

Configuring Trading & Transfer Rules​

The Trading & Transfers section allows you to set rules for secondary market activity:

  1. Allow P2P Trading:

    • Toggle this setting ON to enable the peer-to-peer marketplace feature
    • When enabled, investors can list their tokens for sale to other investors
    • Toggle OFF to disable secondary trading entirely

  2. Max P2P Transfer Amount:

    • Enter the maximum USD value allowed for a single P2P transfer
    • This limits the size of individual secondary market transactions
    • Example: Setting this to 1,000,000 limits transfers to $1M or less
    • Leave blank or set to 0 for no limit

Setting Offering Configuration Rules​

The Offering Configuration section allows you to set rules for deal creation and documentation:

  1. Allow Manual Legal Entities:

    • Toggle this setting ON to permit manual entry of legal entity details
    • When enabled, issuers can manually input their legal entity information
    • When disabled, issuers must use pre-configured legal entity options

  2. SPV Token Issuance:

    • Toggle this setting ON to allow issuers to register Special Purpose Vehicles (SPVs)
    • This enables the built-in service provider for token issuance through SPVs
    • Toggle OFF to disable SPV creation functionality

  3. Allow Manual Regulatory Info:

    • Toggle this setting ON to permit manual entry of regulatory compliance information
    • When enabled, issuers can input custom regulatory details
    • When disabled, issuers must use standardized regulatory information

  4. Allow Custom Offering Docs:

    • Toggle this setting ON to allow issuers to upload custom offering documents
    • When enabled, issuers can provide their own legal documentation
    • When disabled, issuers must use platform-provided templates

  5. Allow Sale Without Legal Docs:

    • Toggle this setting ON to permit deal creation/publishing without attaching legal documents
    • This is NOT recommended for regulated securities offerings
    • Toggle OFF to require legal documentation for all deals

Configuring Payment Options​

The Payments section allows you to configure how investors can pay for investments:

  1. Allow Fiat Payments:

    • Toggle this setting ON to enable traditional currency payment options
    • When enabled, investors can use bank transfers, credit cards, or other fiat methods
    • Configure specific payment providers in the payment integration settings

  2. Configure Payment Providers (if applicable):

    • Set up integration with payment processors
    • Configure payment limits and verification requirements
    • Set up settlement accounts and reconciliation processes

Best Practices​

To ensure optimal compliance configuration:

  1. Align with regulatory requirements:

    • Consult with legal counsel to understand applicable regulations
    • Configure settings to meet or exceed regulatory standards
    • Document your compliance configuration decisions

  2. Balance security and user experience:

    • Implement appropriate KYC requirements without creating excessive friction
    • Consider using tiered KYC based on investment amounts
    • Automate approvals for low-risk transactions while maintaining manual review for higher-risk activities

  3. Regularly review and update:

    • Schedule quarterly reviews of compliance settings
    • Stay informed about regulatory changes
    • Update settings proactively when regulations change

  4. Test compliance workflows:

    • Regularly test the investor onboarding process
    • Verify that KYC requirements are properly enforced
    • Ensure approval workflows function as expected

  5. Document your configuration:

    • Maintain records of all compliance settings
    • Document the reasoning behind configuration choices
    • Create a compliance settings audit trail

Troubleshooting​

Common Compliance Configuration Issues​

IssueSolution
KYC verification not triggeringCheck that KYC Verification System is enabled and properly configured
Approvals not routing correctlyVerify that the appropriate approval toggles are enabled and users have correct roles
Transfer limits not enforcingEnsure Max P2P Transfer Amount is set correctly and the feature is enabled
Investors bypassing KYCVerify that "Require KYC for Investors" is enabled and functioning
Legal document requirements not enforcedCheck that "Allow Sale Without Legal Docs" is disabled

Regulatory Considerations​

RegulationConfiguration Recommendation
Securities lawsEnable Broker Approval for Offerings, require legal documentation
AML regulationsEnable KYC for all investors, limit transfers for unverified users
Accredited investor rulesConfigure investor accreditation verification in KYC settings
Data protection lawsEnsure KYC provider complies with relevant data protection regulations

If you encounter persistent issues with compliance configuration, consult with your legal team or compliance officer to ensure settings align with regulatory requirements.

By following this guide, you'll be able to effectively configure KYC requirements, investor accreditation standards, and other compliance rules on the WhiteLabel Community Deals Platform, ensuring a secure and compliant investment environment.