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How to Verify and Approve Compliant Trade Transactions

Overview​

Approving compliant P2P trade transactions is a critical responsibility for Transfer Agents on the WhiteLabel Community Deals Platform. This process ensures that secondary market transactions meet all regulatory requirements and platform policies before tokens change hands. This guide focuses specifically on the verification and approval process for trades that meet all compliance criteria.

Prerequisites​

Before approving P2P trade transactions, you should:

  • Have an active Transfer Agent account on the platform
  • Have completed the initial review of the trade request
  • Be familiar with the compliance requirements for the specific deal
  • Understand the platform's approval workflow
  • Have authority to approve transactions for the deal in question

Step-by-Step Instructions​

Step 1: Access the Trade Request Details​

  1. Log in to your Transfer Agent account
  2. Navigate to the "P2P Requests" section
  3. Locate the trade request you want to approve
  4. Click on the request to open the detailed view

Step 2: Perform Final Compliance Verification​

Before approving, conduct a final verification of key compliance factors:

  1. Seller Verification:

    • Confirm seller's identity verification is complete and valid
    • Verify seller's ownership of tokens
    • Check that tokens are not subject to lockup or vesting restrictions
    • Confirm seller has passed all required KYC/AML checks

  2. Buyer Verification:

    • Confirm buyer's identity verification is complete and valid
    • Verify buyer's eligibility to purchase the tokens
    • Check buyer's accreditation status if required
    • Confirm buyer has passed all required KYC/AML checks

  3. Transaction Verification:

    • Verify the transaction amount is within acceptable parameters
    • Check that the price is reasonable and not suspicious
    • Confirm the transaction complies with any volume restrictions
    • Verify that all required documentation has been provided

Step 3: Review Automated Compliance Checks​

  1. The platform performs several automated compliance checks:

    • Restricted party screening
    • Transfer restriction validation
    • Holding period verification
    • Investment limit checks
    • Jurisdiction compliance

  2. Review the results of these automated checks:

    • Green indicators show passed checks
    • Yellow indicators require your attention and judgment
    • Red indicators typically indicate non-compliance issues

  3. Click on any indicator for more detailed information about the check

Step 4: Add Approval Notes​

  1. Click on the "Add Note" button

  2. Select "Approval Notes" from the dropdown

  3. Document your verification process and findings:

    • Specific checks performed
    • Any special considerations
    • Reasoning for approval
    • Any conditions attached to the approval

  4. Select note visibility:

    • Internal only (visible only to platform administrators and other transfer agents)
    • Include with notification (visible to the buyer and seller)

  5. Click "Save Note"

Step 5: Initiate the Approval Process​

  1. After completing all verifications, click the "Approve" button

  2. Review the approval summary screen:

    • Transaction details
    • Compliance check results
    • Your approval notes
    • Any system warnings or notices

  3. If everything is in order, click "Confirm Approval"

  4. Enter your security code or use two-factor authentication if prompted

Step 6: Apply Digital Signature​

  1. The system will prompt you to apply your digital signature

  2. Options for signature application:

    • Use your pre-configured digital signature
    • Draw a new signature
    • Type your name for a text-based signature

  3. Review the legal statement regarding your approval

  4. Apply your signature

  5. Click "Submit Signed Approval"

Step 7: Verify Approval Notification​

  1. After approval, the system will:

    • Update the trade status to "Approved"
    • Send notifications to the buyer and seller
    • Record your approval in the audit log
    • Initiate the blockchain transaction (if configured for automatic execution)

  2. Review the confirmation screen showing:

    • Approval timestamp
    • Your digital signature
    • Notification status
    • Next steps in the process

Step 8: Monitor Transaction Execution​

  1. Navigate to the "Approved Trades" section

  2. Locate the recently approved transaction

  3. Monitor its execution status:

    • Pending: Transaction has been approved but not yet executed on the blockchain
    • In Progress: Transaction has been submitted to the blockchain
    • Confirmed: Transaction has been confirmed on the blockchain
    • Completed: All post-transaction processes have been completed

  4. Click on the transaction to view execution details:

    • Transaction hash
    • Block confirmation count
    • Estimated completion time
    • Any execution issues

Step 9: Handle Post-Approval Actions​

  1. If the transaction requires additional actions after approval:

    • Coordinate with the settlement team if manual settlement is required
    • Monitor for successful token transfer
    • Verify that transaction fees have been properly processed

  2. Address any post-approval issues:

    • Failed blockchain transactions
    • Settlement delays
    • Buyer or seller questions

Step 10: Document the Completed Transaction​

  1. Once the transaction is fully completed:

    • Verify that tokens have been transferred to the buyer
    • Confirm that the transaction record is complete
    • Add any final notes to the transaction record

  2. The system will automatically:

    • Update the transaction status to "Completed"
    • Archive the transaction details
    • Update token ownership records
    • Generate transaction receipts for the buyer and seller

Best Practices​

  • Thorough Verification: Always complete all compliance checks before approval
  • Clear Documentation: Document your verification process and reasoning in the notes
  • Consistent Standards: Apply the same approval standards to all transactions
  • Four-Eyes Principle: For high-value transactions, consider having a second transfer agent review
  • Timely Processing: Process approvals promptly to provide good service to investors
  • Audit Trail: Maintain comprehensive notes for audit purposes
  • Verification Depth: Increase scrutiny for higher-value transactions or first-time traders
  • Stay Updated: Keep informed about changing regulations and compliance requirements
  • Continuous Learning: Learn from each transaction to improve your verification process
  • Regulatory Awareness: Be aware of regulatory reporting requirements for approved transactions

Troubleshooting​

Common Issues​

  1. Signature Application Failures

    • Solution: Refresh the page and try applying the signature again
    • Solution: Try a different signature method (typed vs. drawn)

  2. Delayed Transaction Execution

    • Solution: Check blockchain network status for congestion
    • Solution: Verify that gas fees are sufficient (if applicable)
    • Solution: Contact technical support if delays exceed expected timeframes

  3. Post-Approval Buyer/Seller Questions

    • Solution: Direct them to the transaction details in their investor portal
    • Solution: Provide clear explanations about next steps and timelines

  4. Compliance Check Discrepancies

    • Solution: Refresh compliance data if checks were performed some time ago
    • Solution: Contact compliance team for guidance on borderline cases

  5. Token Transfer Failures

    • Solution: Verify wallet addresses are correct
    • Solution: Check for any technical issues with the token contract
    • Solution: Escalate to technical support if the blockchain transaction fails

Getting Help​

If you encounter any issues during the approval process:

  1. Navigate to the /support Support center by clicking on the "Support" link in the main navigation
  2. Select the appropriate category for your issue:
    • "Trade Approval" for process-related questions
    • "Compliance" for regulatory questions
    • "Technical" for platform or blockchain issues
  3. Provide specific details about your issue, including the trade request ID
  4. Submit your support request
  5. Support staff will respond through the platform's notification system