# Compliance

Built By DAO operates within legal frameworks while maintaining decentralized governance. This page outlines our compliance approach and member responsibilities.

***

{% hint style="info" %}

### ⚖️ Compliance Overview

{% endhint %}

| 📜 Legal Structure |       🔐 KYC/AML       | 📊 Reporting |         🌍 Jurisdictions         |
| :----------------: | :--------------------: | :----------: | :------------------------------: |
|   Wyoming DAO LLC  | Required for investors |   Quarterly  | US-focused, global participation |

{% hint style="info" %}
**🎯 Principle:** Compliance enables, not restricts, the DAO's mission

**🔒 Protection:** Proper structure protects members and the organization
{% endhint %}

***

{% tabs %}
{% tab title="📜 Legal Structure" %}

### 📜 Legal Structure

Built By DAO operates as a legally recognized entity to provide member protections.

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### 🏛️ Entity Type

| Property         | Value                                      |
| ---------------- | ------------------------------------------ |
| **Type**         | Wyoming DAO LLC                            |
| **Jurisdiction** | Wyoming, USA                               |
| **Formation**    | Under Wyoming DAO Supplement (W\.S. 17-31) |
| **Governance**   | Smart contract + operating agreement       |

***

### 🤔 Why a Legal Entity?

| Benefit                   | Description                               |
| ------------------------- | ----------------------------------------- |
| 🛡️ **Limited Liability** | Members protected from personal liability |
| 📋 **Contract Ability**   | Can sign leases, hire contractors         |
| 🏦 **Banking Access**     | Can hold traditional bank accounts        |
| 🏠 **Property Ownership** | Can own real estate directly              |
| ⚖️ **Legal Standing**     | Can sue and be sued as entity             |

***

### 📋 Operating Agreement

The operating agreement defines:

| Section            | Content                               |
| ------------------ | ------------------------------------- |
| 🗳️ **Governance** | Smart contract as primary governance  |
| 👥 **Membership**  | NFT-based membership recognition      |
| 💰 **Economics**   | Token relationships and distributions |
| 📊 **Reporting**   | Required disclosures and filings      |
| 🔄 **Amendments**  | How operating agreement can change    |

***

### 🔗 Smart Contract Integration

| Element      | On-Chain         | Legal Backup        |
| ------------ | ---------------- | ------------------- |
| Membership   | ✅ NFT-based      | Operating agreement |
| Voting       | ✅ On-chain       | Legally binding     |
| Treasury     | ✅ Multisig       | Bank account backup |
| Proposals    | ✅ Smart contract | Written record      |
| {% endtab %} |                  |                     |

{% tab title="🔐 KYC/AML" %}

### 🔐 KYC/AML Requirements

Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements apply to certain activities.

***

### 📊 When KYC Required

| Activity              | KYC Required? | Level           |
| --------------------- | :-----------: | --------------- |
| Basic membership      |      ❌ No     | —               |
| Earning EQTBLT        |      ❌ No     | —               |
| Voting                |      ❌ No     | —               |
| Investor NFT purchase |     ✅ Yes     | Full KYC        |
| Large BLTBY purchases |     ✅ Yes     | Full KYC        |
| Treasury withdrawals  |     ✅ Yes     | Verified member |

***

### 📋 KYC Levels

| Level          | Requirements                   | Enables                        |
| -------------- | ------------------------------ | ------------------------------ |
| **Basic**      | Email, wallet                  | Membership, earning            |
| **Verified**   | ID verification                | Proposal submission            |
| **Full KYC**   | ID + address + source of funds | Investment, large transactions |
| **Accredited** | Full KYC + accreditation proof | Trust tier investment          |

***

### 🔒 Data Handling

| Aspect        | Policy                                 |
| ------------- | -------------------------------------- |
| **Storage**   | Encrypted, off-chain                   |
| **Access**    | Compliance team only                   |
| **Retention** | As required by law                     |
| **Sharing**   | Only with legal requirement            |
| **Deletion**  | Upon valid request (with legal limits) |

***

### 🌍 Jurisdiction Considerations

| Region       | Status                                  |
| ------------ | --------------------------------------- |
| 🇺🇸 USA     | Primary jurisdiction, full compliance   |
| 🇪🇺 EU      | GDPR compliance for EU members          |
| 🌍 Other     | Country-specific restrictions may apply |
| {% endtab %} |                                         |

{% tab title="📊 Reporting" %}

### 📊 Reporting & Disclosures

Built By DAO maintains transparency through regular reporting.

***

### 📅 Regular Reports

| Report                     | Frequency | Content                            |
| -------------------------- | --------- | ---------------------------------- |
| 📊 **Treasury Report**     | Monthly   | Balances, inflows, outflows        |
| 🏠 **Property Report**     | Quarterly | Properties, occupancy, maintenance |
| 👥 **Membership Report**   | Quarterly | Member counts, rank distribution   |
| 💰 **Financial Statement** | Annual    | Full financial disclosure          |
| 🗳️ **Governance Report**  | Quarterly | Proposals, votes, Council activity |

***

### 📋 Required Filings

| Filing              | Jurisdiction        | Frequency   |
| ------------------- | ------------------- | ----------- |
| Annual report       | Wyoming             | Annual      |
| Tax filings         | IRS                 | Annual      |
| State registrations | Operating states    | Annual      |
| Securities filings  | SEC (if applicable) | As required |

***

### 🔍 Audit & Review

| Review Type             | Frequency        | Scope                  |
| ----------------------- | ---------------- | ---------------------- |
| 📊 Financial audit      | Annual           | Treasury, transactions |
| 🔐 Smart contract audit | Per major update | Security review        |
| ⚖️ Compliance review    | Annual           | Legal requirements     |
| 🏠 Property inspection  | Annual           | Physical assets        |

***

### 📢 Public Disclosures

| Information        | Availability         |
| ------------------ | -------------------- |
| Treasury balance   | Real-time on-chain   |
| Proposal results   | Public on-chain      |
| Member counts      | Public dashboard     |
| Property portfolio | Public documentation |
| {% endtab %}       |                      |

{% tab title="👤 Member Duties" %}

### 👤 Member Compliance Duties

Members have certain compliance responsibilities.

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### ✅ Member Responsibilities

| Duty                         | Description                        |
| ---------------------------- | ---------------------------------- |
| 📋 **Accurate Information**  | Provide truthful information       |
| 🔄 **Updates**               | Keep contact information current   |
| 🚫 **Prohibited Activities** | Don't use DAO for illegal purposes |
| 📊 **Tax Compliance**        | Report earnings appropriately      |
| 🗳️ **Good Faith**           | Participate honestly in governance |

***

### 🚫 Prohibited Activities

| Activity             | Consequence                       |
| -------------------- | --------------------------------- |
| Money laundering     | Immediate removal, legal referral |
| Fraud                | Immediate removal, legal referral |
| Market manipulation  | Removal, possible legal action    |
| Sanctions violations | Immediate removal, legal referral |
| Identity fraud       | Immediate removal                 |

***

### 💰 Tax Considerations

| Activity           | Tax Implications         |
| ------------------ | ------------------------ |
| EQTBLT earnings    | May be taxable income    |
| BLTBY transactions | Capital gains may apply  |
| NFT sales          | May be taxable events    |
| Rent payments      | Consult tax professional |

**⚠️ This is not tax advice. Consult a qualified tax professional.**

***

### 📋 Reporting Suspicious Activity

| Step         | Action                            |
| ------------ | --------------------------------- |
| 1️⃣          | Document concern with details     |
| 2️⃣          | Report through compliance channel |
| 3️⃣          | Maintain confidentiality          |
| 4️⃣          | Cooperate with investigation      |
| {% endtab %} |                                   |

{% tab title="🏠 Property" %}

### 🏠 Property Compliance

Real estate operations require specific compliance measures.

***

### 📋 Property Requirements

| Requirement            | Description                         |
| ---------------------- | ----------------------------------- |
| 🏗️ **Building Codes** | All properties meet local codes     |
| 🔥 **Safety**          | Fire, electrical, structural safety |
| ♿ **Accessibility**    | ADA compliance where required       |
| 🌿 **Environmental**   | Lead, asbestos, environmental laws  |
| 🏠 **Fair Housing**    | Non-discrimination in housing       |

***

### 📋 Lease Compliance

| Aspect                | Standard                      |
| --------------------- | ----------------------------- |
| **Lease Terms**       | Clear, legally compliant      |
| **Security Deposits** | State law compliance          |
| **Disclosures**       | Required property disclosures |
| **Eviction Process**  | Legal procedures followed     |
| **Rent Collection**   | Documented, consistent        |

***

### 🔍 Inspections

| Inspection Type | Frequency                   |
| --------------- | --------------------------- |
| Pre-lease       | Before each new tenant      |
| Annual          | Yearly property condition   |
| Safety          | As required by jurisdiction |
| Move-out        | End of each tenancy         |

***

### 📊 Record Keeping

| Record              | Retention                 |
| ------------------- | ------------------------- |
| Lease agreements    | 7 years after termination |
| Payment records     | 7 years                   |
| Maintenance records | Life of property          |
| Inspection reports  | 7 years                   |
| {% endtab %}        |                           |
| {% endtabs %}       |                           |

***

<details>

<summary>📋 Compliance Resources</summary>

#### Internal Resources

| Resource           | Purpose                |
| ------------------ | ---------------------- |
| Compliance Team    | Questions and guidance |
| Legal Counsel      | Complex issues         |
| Compliance Portal  | Document submission    |
| Training Materials | Self-service learning  |

#### External Resources

| Resource                   | Purpose             |
| -------------------------- | ------------------- |
| Wyoming Secretary of State | Entity filings      |
| IRS                        | Tax guidance        |
| Local Building Departments | Property compliance |
| Legal Professionals        | Individual advice   |

</details>

***

{% hint style="success" %}

### 🔗 Learn More

* 📜 [Ethics](/governance/ethics.md) — Governance ethics framework
* 🔐 [KYC Process](/investors/kyc.md) — Investor verification
* 🏛️ [Leadership Council](/governance/leadership-council.md) — Oversight structure
* ⚖️ [Legal Resources](/help-and-resources/legal.md) — Legal documentation
  {% endhint %}

***

## 🔗 Related Pages

{% content-ref url="/pages/zAODaCVNqr4Noy81YMh4" %}
[Ethics](/governance/ethics.md)
{% endcontent-ref %}

{% content-ref url="/pages/wCsHi9X5RfIeOlpdeVSV" %}
[Leadership Council](/governance/leadership-council.md)
{% endcontent-ref %}

{% content-ref url="/pages/sIrZcYwcVbqk5LKtzvGE" %}
[KYC & Compliance](/investors/kyc.md)
{% endcontent-ref %}

{% content-ref url="/pages/PNAkdNwiQE9IYrEvCvW5" %}
[Legal](/help-and-resources/legal.md)
{% endcontent-ref %}


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