Electronic Wallet

Electronic Wallet Creation and Verification #

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.

SEC regulation require financial institutions to verify customer identity using reliable 3rd-party KYC providers.

The wallet can be linked to a bank account and used for:

Data Handling & Security Compliance #

In compliance with Financial Industry Regulatory Authority (FINRA) guidelines, we follow NIST 800-63B standards for handling sensitive data ( View NIST 800-63B standards). 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.

Wallet Verification & Notification Compliance #

Once the verification process is successfully completed, the user receives a legally required email confirmation that their wallet is successfully created and verified. The wallet is now ready for linking with a bank account and for loading/withdrawing funds. The Electronic Wallet can be chosen as a payment method during the investment process and used for refunds or dividend payments.

Regulatory Compliance:

  • SEC Rule 17a-4(f) mandates that electronic records for financial transactions and communications be retained ( More on SEC Rule 17a-4).
  • FINRA Rule 4511 requires electronic communications (including verification emails) to be stored for at least five years ( More on FINRA Rule 4511).

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/created.pug - Required by Law/SEC

flowchart TD A[User enters personal details and submits for KYC verification] --> B{Identity verification check} B -->|Failed| C(KYC failed) B -->|Passed| D(Wallet is being created) D --> E{Request successful?} E -->|No| F[/Request failed/] E -->|Yes| G{{CUSTOMER VERIFICATION}} G --> H{Passed?} H -->|No| I[/ERROR/] H -->|Yes| K(VERIFIED) K --> L[WALLET CREATED] L --> M([LAW REQUIRED EMAIL : WALLET CREATED & VERIFIED])

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
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