Compliance Overview

interface ComplianceGovernance {
  leadership: {
    chiefComplianceOfficer: {
      name: 'TBD'
      reportsTo: 'CEO'
      responsibilities: [
        'Regulatory compliance oversight',
        'Policy development and maintenance',
        'Regulatory relationship management',
        'Compliance risk assessment'
      ]
    }
    complianceCommittee: {
      members: ['CEO', 'CCO', 'CFO', 'Legal Counsel']
      meetingFrequency: 'Monthly'
      responsibilities: [
        'Review compliance metrics',
        'Approve policy changes',
        'Oversee remediation efforts',
        'Review regulatory changes'
      ]
    }
  }
  reporting: {
    board: 'Quarterly compliance report'
    regulators: 'As required by regulation'
    internal: 'Monthly dashboards'
  }
}

risk_assessment:
  frequency: "Annual + significant changes"
  methodology: "COSO Framework"
 
  categories:
    regulatory_risk:
      - FINTRAC non-compliance
      - Provincial licensing gaps
      - Privacy breaches
      - Consumer protection violations
 
    operational_risk:
      - KYC/AML failures
      - Data quality issues
      - Third-party compliance
      - System failures
 
    reputational_risk:
      - Regulatory sanctions
      - Media coverage
      - Customer complaints
      - Partner concerns
 
  risk_matrix:
    high_impact_high_probability:
      - "Immediate remediation required"
      - "Board notification"
      - "Regulatory disclosure if required"
 
    high_impact_low_probability:
      - "Mitigation plan required"
      - "Quarterly monitoring"
      - "Insurance consideration"

interface ComplianceTraining {
  onboarding: {
    topics: [
      'Regulatory overview',
      'AML/KYC basics',
      'Privacy requirements',
      'Reporting obligations',
      'Red flags identification'
    ]
    duration: '4 hours'
    testing: true
    passingScore: 80
  }
  annual: {
    topics: [
      'Regulatory updates',
      'Policy changes',
      'Case studies',
      'Incident review',
      'Best practices'
    ]
    duration: '2 hours'
    testing: true
    passingScore: 80
  }
  roleSpecific: {
    customerFacing: [
      'KYC procedures',
      'Suspicious activity detection',
      'Customer privacy'
    ]
    technical: [
      'Data protection',
      'System security',
      'Audit logging'
    ]
    management: [
      'Oversight responsibilities',
      'Reporting requirements',
      'Risk management'
    ]
  }
}

interface ComplianceKPIs {
  regulatory: {
    filedReports: number           // Target: 100% on time
    regulatoryFindings: number      // Target: 0 critical
    licenseStatus: 'Active' | 'Pending' | 'Expired'
    lastAudit: Date
  }
  operational: {
    kycCompletionRate: number      // Target: 100%
    kycReviewBacklog: number       // Target: < 10
    suspiciousTransactions: number  // Track and report
    trainingCompletion: number      // Target: 100%
  }
  quality: {
    falsePositives: number         // Target: < 10%
    customerComplaints: number     // Target: < 5/month
    dataBreaches: number           // Target: 0
    privacyIncidents: number       // Target: 0
  }
}

dashboard:
  real_time_monitoring:
    - Transaction monitoring alerts
    - KYC verification queue
    - Sanctions screening results
    - System availability
 
  daily_reports:
    - New customer onboarding
    - High-risk transactions
    - Failed KYC attempts
    - System errors
 
  weekly_reports:
    - Compliance metrics summary
    - Training completion status
    - Policy violations
    - Regulatory updates
 
  monthly_reports:
    - Risk assessment update
    - Compliance scorecard
    - Incident summary
    - Regulatory filing status

class ComplianceAutomation {
  // KYC automation
  async performKYC(customer: Customer): Promise<KYCResult> {
    const checks = await Promise.all([
      this.verifyIdentity(customer),
      this.checkSanctions(customer),
      this.checkPEP(customer),
      this.checkAdverseMedia(customer),
      this.assessRisk(customer)
    ])
 
    return {
      status: this.determineStatus(checks),
      riskScore: this.calculateRiskScore(checks),
      requiredActions: this.getRequiredActions(checks)
    }
  }
 
  // Transaction monitoring
  async monitorTransaction(transaction: Transaction): Promise<MonitoringResult> {
    const alerts = []
 
    // Pattern detection
    if (await this.detectStructuring(transaction)) {
      alerts.push({ type: 'structuring', severity: 'high' })
    }
 
    if (await this.detectVelocity(transaction)) {
      alerts.push({ type: 'velocity', severity: 'medium' })
    }
 
    if (await this.detectGeographicRisk(transaction)) {
      alerts.push({ type: 'geographic', severity: 'high' })
    }
 
    return {
      alerts,
      requiresReview: alerts.length > 0,
      autoEscalate: alerts.some(a => a.severity === 'high')
    }
  }
}

incident_response:
  classification:
    critical:
      - Regulatory breach
      - Large-scale privacy breach
      - Systemic AML failure
      response_time: Immediate
      escalation: CEO, Board, Legal
 
    high:
      - Individual privacy breach
      - Missed regulatory filing
      - Failed audit finding
      response_time: Within 4 hours
      escalation: CCO, Legal
 
    medium:
      - Policy violation
      - Training non-completion
      - Process deviation
      response_time: Within 24 hours
      escalation: Compliance team
 
    low:
      - Documentation gap
      - Minor process issue
      response_time: Within 72 hours
      escalation: Team lead
 
  process:
    1_detection: "Identify and classify incident"
    2_containment: "Prevent further impact"
    3_investigation: "Determine root cause"
    4_remediation: "Fix underlying issue"
    5_notification: "Inform stakeholders/regulators"
    6_review: "Lessons learned and prevention"