Regulatory Compliance

Integrated Compliance

CreditLoop's regulatory compliance framework is designed to integrate KYC/AML requirements and tax reporting directly into the settlement process. This ensures full visibility and compliance while maintaining the efficiency of the network.

Key Features

  • Built-in KYC/AML verification
  • Automated tax reporting and calculations
  • Complete audit trail of all transactions
  • Real-time compliance monitoring

Compliance Framework

The system ensures compliance through:

  • Identity verification at network entry
  • Transaction monitoring and reporting
  • Automated tax calculations and withholding
  • Comprehensive audit trails

Compliance Flow

sequenceDiagram participant Users as Users (A/B/C) participant Diamond as Diamond Contract participant CoreF as Core Facets participant VerifF as Verification Facets participant OracleF as Oracle Facets participant ExtServ as External Services Note over Users,ExtServ: Phase 1: Identity Verification Users->>Diamond: Connect wallet Diamond->>VerifF: Request identity verification VerifF->>ExtServ: Verify identity (KYC) ExtServ-->>VerifF: Identity verified VerifF-->>Diamond: Cache verification status Diamond-->>Users: Access granted Note over Users,ExtServ: Phase 2: Debt Creation & Document Verification Users->>Diamond: Submit debt documents Diamond->>VerifF: Request document verification VerifF->>ExtServ: Extract terms (AI Analysis) ExtServ-->>VerifF: Terms extracted VerifF->>ExtServ: Generate ZK proof ExtServ-->>VerifF: ZK proof generated VerifF-->>Diamond: Document verified Diamond->>CoreF: Create debt with verified terms Note over Users,ExtServ: Phase 3: Chain Detection & Optimization CoreF->>CoreF: Auto-detect potential chain Diamond->>OracleF: Request chain optimization OracleF->>ExtServ: Optimize chain path ExtServ-->>OracleF: Return optimal path OracleF-->>Diamond: Update chain configuration Note over Users,ExtServ: Phase 4: Chain Resolution & Consent Users->>Diamond: Request chain resolution Diamond->>CoreF: Validate chain participants CoreF->>VerifF: Check identity statuses VerifF-->>CoreF: Identities confirmed Users->>Diamond: Provide consent Diamond->>CoreF: Record consent Note over Users,ExtServ: Phase 5: Payment Processing & Tax Users->>Diamond: Initiate payment Diamond->>OracleF: Calculate tax obligations OracleF->>ExtServ: Get tax rates ExtServ-->>OracleF: Return tax calculations Diamond->>CoreF: Process payment CoreF->>ExtServ: Route tax payment CoreF->>Users: Route remaining funds Note over Users,ExtServ: Phase 6: Status Updates Diamond->>CoreF: Update debt statuses CoreF->>VerifF: Update document states Diamond->>OracleF: Update tax records Diamond-->>Users: Notify completion Note over Users,ExtServ: All interactions through Diamond Proxy