Bank Account Linking

Bank Account is Linked to Electronic Wallet #

The investor initiates the process to create an Electronic Wallet by passing Identity Verification (KYC) on the platform. This is a Securities and Exchange Commission (SEC) requirement prior to the creation of an investment account, in accordance with the Customer Identification Program (CIP) rules under the USA PATRIOT Act ( More on CIP requirements).

The investor fills in personal information (name, email, address, phone number, etc.) necessary for wallet setup. Once identity verification is approved by a KYC provider, the information is securely forwarded to the Customer Verification System of the Electronic Wallet provider. Depending on the user’s details, the verification may be instant (for individual investment profiles) or require manual review.

Bank Account Linking & Verification #

The user initiates the bank linking process by selecting an option like Link Bank Account in the Wallet section. The platform provides a bank selection interface, where users can manually enter bank details or use a bank-linking service, such as Plaid, for instant verification. The user may need to verify the linked bank account, often by confirming small test deposits sent by the payment provider.

Once verification is complete, a required by law email notification confirms that their bank account is successfully linked to their Wallet and is now available for fund transfers. The platform updates the user’s wallet to reflect the linked bank account, making it ready for investments, withdrawals, and refunds.

Regulatory Compliance:

  • SEC Rule 17a-4(f) mandates that electronic records for financial transactions and communications be retained ( More on SEC Rule 17a-4).
  • Email confirmation of linked accounts falls under FINRA and SEC record-keeping regulations ( More on FINRA Rule 4511).

Data Security & Compliance #

In compliance with Financial Industry Regulatory Authority (FINRA) guidelines, we follow NIST 800-63B standards for handling sensitive data. While this standard provides general recommendations for data security, it leaves some ambiguity regarding the exact requirements for storing sensitive information. To mitigate security risks, we never store sensitive data directly on our platform. Instead, we rely on trusted third-party partners to handle and secure payment information.

Email Notifications & Security Compliance #

Our email-service integrates with a trusted delivery and marketing platform to ensure security, compliance, and deliverability. It includes robust encryption and regulatory compliance with FINRA and SEC standards, protecting sensitive financial data and minimizing the risk of phishing or email spoofing. By adhering to SEC, FINRA, NIST, and PCI DSS standards, the platform ensures investor protection, transparent wallet verification, and secure handling of financial transactions.

Emails #

  • wallet/bank_account_connected.pug - Required by Law/SEC

  • wallet/bank_account_disconnected.pug - Required by Law/SEC

flowchart TD A{{Wallet is created and verified}} --> B[User initiates Bank Account Linking] B[User initiates Bank Account Linking] --> C(User provides Bank Account Details and Submits) C --> D{Bank Account Verification Instant/Deposits} D -->|Failed| E[/ERROR/] D -->|Successful| F[Bank Account Linked to Wallet] F --> G{{Wallet is being used}} G --> H[User initiates Bank Account Linking] H --> K[Bank Account UNLinked from Wallet] F --> L([LAW REQUIRED EMAIL: BANK ACCOUNT LINKED]) K --> M([LAW REQUIRED EMAIL: BANK ACCOUNT UNLINKED])

Notice: Provider Variability and Compliance Assurance

Please be advised that, depending on customer preferences, the specific providers involved in the investment and related processes, including identity verification, accreditation checks, electronic wallet provision, email communications, and other related services, may vary. However, rest assured that all such providers are carefully selected to meet the highest standards of security, compliance with applicable laws and regulations, and user experience best practices.

Each provider undergoes a rigorous vetting process to ensure they align with our commitment to safeguarding your personal and financial information. We prioritize full adherence to regulatory requirements, ensuring that your investment experience remains secure, compliant, and seamless.

Test Cases

All processes on our platform are thoroughly documented, including detailed test cases, which are especially critical whenever changes are made. Test cases ensure that every feature functions as intended, identify potential issues early, and maintain the platform’s reliability, security, and compliance for our investors.

Related Use-Cases:

Read more on the subject #

Calendar March 17, 2025
Edit Edit this page