Playbook: Verification Issues
You've received a "verification needs action" or "verification rejected" ops alert. An investor's identity verification (KYC) or entity verification (...
You've received a "verification needs action" or "verification rejected" ops alert. An investor's identity verification (KYC) or entity verification (KYB) has run into problems, which is blocking their investment from proceeding to payment.
Diagnostic Flowchart
Step-by-Step Guide
Step 1: Identify the Problem
- Check the ops alert for the investor name and verification type (KYC or KYB)
- Find the investor in the admin panel (People section)
- Check their Identity status (for KYC) or Investment Profile status (for KYB)
- If available, check the compliance provider's dashboard for more detailed rejection reasons
Step 2: Understand Common Reasons
KYC (Individual) Issues
| Reason | What It Means | Solution |
|---|---|---|
| Name mismatch | Name on file doesn't match government ID | Help investor correct their name in the system |
| Address mismatch | Address doesn't match what's on file | Help investor update their address |
| SSN verification failed | SSN doesn't match (US investors) | Verify the SSN was entered correctly (no transposition errors) |
| ID number format invalid | Non-US ID number format is wrong | Check the country-specific requirements and help fix |
| Document unreadable | Provider couldn't read the submitted document | Ask investor to resubmit a clearer copy |
| Expired document | Government ID has expired | Investor needs to provide a current ID |
KYB (Entity) Issues
| Reason | What It Means | Solution |
|---|---|---|
| Entity not found | The entity isn't in registries | Verify the exact legal name and registration state |
| Entity not in good standing | Entity registration has lapsed | Investor needs to resolve with their state |
| Control person mismatch | Person claiming authority doesn't match entity records | Verify the control person details |
Step 3: Contact the Investor
- Reach out via email or phone
- Explain the issue in simple terms (avoid compliance jargon)
- Tell them exactly what's needed
- Offer to help them through the process
Example message for "needs info":
"Hi [Name], we need a bit of additional information to complete the verification for your investment. Specifically, [clear description of what's needed]. You can update this in your account at [portal link]. Let me know if you need any help!"
Step 4: Resolve and Re-submit
Once the investor provides updated information:
- Verify the updated information looks correct
- Enable retry on the identity (admin action)
- The system will re-submit verification
- Monitor the result
- If approved, the investment readiness evaluation will automatically proceed
Step 5: Consider the Wire Bypass Option
If verification is proving difficult and the investor is eligible:
- Discuss switching to wire transfer as a payment method
- Wire transfers currently bypass identity verification
- The investor would need to send a wire instead of having money pulled from their bank
- This is a legitimate operational option, not a loophole
Use judiciously -- this should be reserved for cases where:
- The investor is clearly legitimate but having documentation issues
- Time is a factor (the deal is closing soon)
- The verification issue is likely resolvable but needs more time
What NOT to Do
- Don't ignore verification alerts -- they represent blocked investments that won't proceed without action
- Don't override verification -- there's no "force approve" button, and there shouldn't be
- Don't share detailed compliance reasons with the investor -- keep explanations simple and focused on what they need to provide
- Don't use wire bypass routinely -- it's a specific option for specific situations, not a default workaround
Last updated Mar 26, 2026
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