AML/KYC Procedures

interface IndividualKYC {
  required: {
    fullName: {
      first: string
      middle?: string
      last: string
    }
    dateOfBirth: Date
    address: {
      street: string
      city: string
      province: string
      postalCode: string
      country: string
    }
    identification: {
      type: 'drivers_license' | 'passport' | 'pr_card'
      number: string
      expiryDate: Date
      issuingJurisdiction: string
    }
    occupation: string
    employerName?: string
  }
 
  verification: {
    method: 'document' | 'credit_bureau' | 'dual_process'
    timestamp: Date
    verifiedBy: string
    result: 'pass' | 'fail' | 'pending'
  }
}

interface BusinessKYC {
  required: {
    legalName: string
    operatingName?: string
    businessNumber: string
    incorporationDate: Date
    jurisdiction: string
 
    address: {
      registered: Address
      operating?: Address
    }
 
    natureOfBusiness: string
    naicsCode: string
 
    ownership: {
      structure: 'corporation' | 'partnership' | 'sole_proprietorship'
      beneficialOwners: BeneficialOwner[]
      controllingPersons: Person[]
    }
 
    directors: Director[]
    signingAuthorities: SigningAuthority[]
  }
}

dual_process:
  option_1:
    source_1: "Credit bureau report"
    source_2: "Bank statement"
    requirement: "Both from different sources"
 
  option_2:
    source_1: "Government benefits statement"
    source_2: "Utility bill"
    requirement: "Different organizations"
 
  option_3:
    source_1: "Employment letter"
    source_2: "Insurance document"
    requirement: "Independent verification"
 
  timeline: "Within 30 days of account opening"
  documentation: "Retain copies of both sources"

class CustomerRiskAssessment {
  calculateRiskScore(customer: Customer): RiskProfile {
    let score = 0
 
    // Geographic Risk
    if (this.isHighRiskCountry(customer.country)) score += 30
    if (this.isMediumRiskCountry(customer.country)) score += 15
 
    // Product Risk
    if (customer.products.includes('wire_transfers')) score += 20
    if (customer.products.includes('cash_intensive')) score += 25
 
    // Customer Type Risk
    if (customer.isPEP) score += 40
    if (customer.isNonProfit) score += 15
    if (customer.isMSB) score += 30
 
    // Behavioral Risk
    if (customer.hasAdverseMedia) score += 20
    if (customer.hasComplexStructure) score += 15
 
    return {
      score,
      level: this.determineLevel(score),
      reviewFrequency: this.getReviewFrequency(score),
      enhancedDueDiligence: score > 60
    }
  }
 
  determineLevel(score: number): RiskLevel {
    if (score <= 30) return 'LOW'
    if (score <= 60) return 'MEDIUM'
    return 'HIGH'
  }
}

edd_triggers:
  mandatory:
    - Politically Exposed Persons (PEPs)
    - High-risk jurisdictions
    - Complex ownership structures
    - Adverse media findings
    - Unusual transaction patterns
 
  discretionary:
    - Large transaction volumes
    - Rapid movement of funds
    - Inconsistent information
    - Reluctance to provide information
    - Unusual business relationships

interface EnhancedDueDiligence {
  additionalInformation: {
    sourceOfWealth: {
      description: string
      documentation: Document[]
      verified: boolean
    }
 
    sourceOfFunds: {
      origin: string
      trail: TransactionRecord[]
      verified: boolean
    }
 
    purposeOfAccount: {
      stated: string
      expectedActivity: ActivityProfile
      verified: boolean
    }
  }
 
  ongoingMonitoring: {
    frequency: 'monthly' | 'weekly' | 'daily'
    transactionLimits: {
      daily: number
      monthly: number
      perTransaction: number
    }
 
    alertThresholds: {
      velocityIncrease: number  // percentage
      patternDeviation: number  // score
      geographicChange: boolean
    }
  }
 
  approval: {
    level: 'senior_management' | 'compliance_officer' | 'board'
    approvedBy: string
    approvalDate: Date
    conditions: string[]
  }
}

class BeneficialOwnershipAnalysis {
  async analyzeStructure(entity: Entity): Promise<OwnershipMap> {
    const layers: OwnershipLayer[] = []
 
    // First layer - direct ownership
    const directOwners = await this.getDirectOwners(entity)
    layers.push({ level: 1, owners: directOwners })
 
    // Subsequent layers - indirect ownership
    let currentLevel = directOwners
    let level = 2
 
    while (currentLevel.some(o => o.isEntity)) {
      const nextLevel = await this.getNextLayer(currentLevel)
      if (nextLevel.length === 0) break
 
      layers.push({ level, owners: nextLevel })
      currentLevel = nextLevel
      level++
 
      if (level > 5) {
        this.flagComplexStructure(entity)
        break
      }
    }
 
    return this.consolidateOwnership(layers)
  }
 
  consolidateOwnership(layers: OwnershipLayer[]): OwnershipMap {
    const ultimateBOs: UltimateBeneficialOwner[] = []
 
    // Calculate ultimate ownership percentages
    for (const layer of layers) {
      for (const owner of layer.owners) {
        if (owner.isPerson) {
          const ultimatePercentage = this.calculateUltimateOwnership(owner, layers)
          if (ultimatePercentage >= 25) {
            ultimateBOs.push({
              person: owner,
              percentage: ultimatePercentage,
              verified: false
            })
          }
        }
      }
    }
 
    return { ultimateBOs, structure: layers }
  }
}

sanctions_lists:
  canadian:
    - OSFI Consolidated List
    - Regulations Establishing a List of Entities
    - United Nations Al-Qaida and Taliban Regulations
 
  international:
    - OFAC SDN List (US)
    - UN Security Council Consolidated List
    - EU Consolidated Financial Sanctions List
    - UK HM Treasury Sanctions List
 
  pep_databases:
    - World-Check
    - Dow Jones Risk & Compliance
    - LexisNexis WorldCompliance
 
  adverse_media:
    - Major news sources
    - Regulatory enforcement actions
    - Court records

class SanctionsScreening {
  async screenCustomer(customer: Customer): Promise<ScreeningResult> {
    const results: ScreeningMatch[] = []
 
    // Name screening
    const nameMatches = await this.screenName(customer.name)
    results.push(...nameMatches)
 
    // Address screening
    const addressMatches = await this.screenAddress(customer.address)
    results.push(...addressMatches)
 
    // Associated parties screening
    for (const associate of customer.associates) {
      const associateMatches = await this.screenName(associate.name)
      results.push(...associateMatches)
    }
 
    // PEP screening
    const pepMatches = await this.screenPEP(customer)
    results.push(...pepMatches)
 
    // Adverse media screening
    const mediaMatches = await this.screenAdverseMedia(customer)
    results.push(...mediaMatches)
 
    return {
      matches: results,
      hasMatches: results.length > 0,
      requiresReview: results.some(r => r.score > 0.7),
      autoReject: results.some(r => r.isSanctioned)
    }
  }
 
  calculateMatchScore(customer: string, match: string): number {
    // Fuzzy matching algorithm
    const exactMatch = customer.toLowerCase() === match.toLowerCase()
    if (exactMatch) return 1.0
 
    const similarity = this.levenshteinSimilarity(customer, match)
    const soundexMatch = this.soundex(customer) === this.soundex(match)
 
    return (similarity * 0.7) + (soundexMatch ? 0.3 : 0)
  }
}

interface MonitoringRule {
  id: string
  name: string
  category: 'structuring' | 'velocity' | 'pattern' | 'geographic'
  threshold: number
  timeframe: 'daily' | 'weekly' | 'monthly'
  action: 'alert' | 'block' | 'review'
}
 
const monitoringRules: MonitoringRule[] = [
  {
    id: 'STR001',
    name: 'Potential Structuring',
    category: 'structuring',
    threshold: 9900, // Just below $10,000
    timeframe: 'daily',
    action: 'alert'
  },
  {
    id: 'VEL001',
    name: 'Unusual Velocity',
    category: 'velocity',
    threshold: 500, // 500% increase
    timeframe: 'weekly',
    action: 'review'
  },
  {
    id: 'GEO001',
    name: 'High-Risk Geography',
    category: 'geographic',
    threshold: 1, // Any transaction
    timeframe: 'daily',
    action: 'alert'
  }
]

suspicious_indicators:
  structuring:
    - Multiple transactions just below reporting threshold
    - Deposits followed by immediate withdrawals
    - Use of multiple accounts for similar transactions
 
  unusual_patterns:
    - Activity inconsistent with customer profile
    - Sudden change in transaction volume
    - Complex transaction chains
    - Round dollar amounts
 
  geographic:
    - Transactions with high-risk jurisdictions
    - Unexpected international transfers
    - Multiple geographic locations in short time
 
  behavioral:
    - Reluctance to provide information
    - Unusual concern about compliance
    - Request to cancel transaction after learning of reporting
    - Use of multiple identities

class STRManagement {
  async createSTR(alert: Alert): Promise<STR> {
    const str = {
      id: generateSTRId(),
      alert: alert,
      status: 'draft',
      createdAt: new Date(),
 
      narrative: await this.generateNarrative(alert),
 
      customer: {
        info: await this.getCustomerInfo(alert.customerId),
        accounts: await this.getCustomerAccounts(alert.customerId),
        transactions: await this.getRelevantTransactions(alert)
      },
 
      suspicion: {
        category: this.categorizeSuspicion(alert),
        indicators: this.identifyIndicators(alert),
        amount: this.calculateSuspiciousAmount(alert)
      }
    }
 
    // Quality review
    await this.qualityReview(str)
 
    // Management approval
    await this.getApproval(str)
 
    // File with FINTRAC
    const filed = await this.fileWithFINTRAC(str)
 
    // Update records
    await this.updateRecords(str, filed)
 
    return str
  }
 
  generateNarrative(alert: Alert): string {
    return `
      On ${alert.date}, unusual activity was detected on account ${alert.accountId}.
 
      The activity involved ${alert.description}.
 
      This activity is considered suspicious because ${alert.reason}.
 
      The customer's expected activity is ${alert.expectedActivity},
      however the observed activity was ${alert.observedActivity}.
 
      Investigation revealed ${alert.investigationFindings}.
 
      Based on the above, there are reasonable grounds to suspect that
      the transaction is related to money laundering or terrorist financing.
    `
  }
}

record_retention:
  customer_identification:
    what: "All documents used to verify identity"
    period: "5 years after last transaction"
    format: "Original or certified copy"
 
  beneficial_ownership:
    what: "Ownership structure and verification"
    period: "5 years after last transaction"
    format: "Electronic or paper"
 
  risk_assessments:
    what: "Initial and periodic assessments"
    period: "5 years from assessment date"
    format: "Electronic with audit trail"
 
  screening_results:
    what: "Sanctions and PEP screening"
    period: "5 years from screening date"
    format: "Electronic with timestamp"

interface TransactionRecord {
  required: {
    transactionId: string
    date: Date
    amount: number
    currency: string
 
    parties: {
      originator: Party
      beneficiary: Party
      intermediaries?: Party[]
    }
 
    purpose: string
    method: 'wire' | 'ach' | 'cash' | 'check' | 'other'
 
    audit: {
      recordedBy: string
      recordedAt: Date
      approvedBy?: string
      approvedAt?: Date
    }
  }
 
  retention: {
    period: '5 years'
    location: 'secure_database'
    encryption: 'AES-256'
    backups: 'daily'
  }
}

interface KYCMetrics {
  operational: {
    averageCompletionTime: number  // minutes
    firstPassRate: number          // percentage
    backlogCount: number
    overdueReviews: number
  }
 
  quality: {
    errorRate: number              // percentage
    missingDocumentRate: number    // percentage
    incorrectRiskRating: number    // percentage
    customerComplaints: number
  }
 
  compliance: {
    strFilingTimeliness: number    // percentage on time
    falsePositiveRate: number      // percentage
    regulatoryFindings: number
    trainingCompletion: number     // percentage
  }
 
  targets: {
    completionTime: '<30 minutes'
    firstPassRate: '>90%'
    errorRate: '<5%'
    strTimeliness: '100%'
  }
}

training_curriculum:
  new_employees:
    duration: "16 hours"
    topics:
      - Regulatory framework
      - Customer identification procedures
      - Document verification
      - Risk assessment methodology
      - Red flags and indicators
      - Sanctions screening
      - STR process
      - Record keeping
    assessment: "Required - 80% pass"
 
  annual_refresher:
    duration: "4 hours"
    topics:
      - Regulatory updates
      - Policy changes
      - Case studies
      - Common errors
      - Best practices
    assessment: "Required - 80% pass"
 
  specialized:
    compliance_team:
      - Advanced investigation techniques
      - STR quality and narrative writing
      - Regulatory examination preparation
 
    customer_facing:
      - Customer interaction best practices
      - Document collection procedures
      - Escalation protocols
 
    management:
      - Oversight responsibilities
      - Risk tolerance and appetite
      - Regulatory expectations

interface KYCPlatform {
  features: {
    documentCapture: {
      ocr: boolean
      mobileCapture: boolean
      liveness: boolean
    }
 
    verification: {
      governmentDatabase: boolean
      creditBureau: boolean
      biometric: boolean
    }
 
    screening: {
      realTime: boolean
      batchProcessing: boolean
      continuousMonitoring: boolean
    }
 
    workflow: {
      caseManagement: boolean
      escalation: boolean
      audit: boolean
    }
  }
 
  integration: {
    core: 'API' | 'batch' | 'realtime'
    screening: 'API' | 'file' | 'direct'
    reporting: 'automated' | 'manual'
  }
 
  security: {
    encryption: 'AES-256'
    mfa: true
    audit: 'comprehensive'
    dataResidency: 'Canada'
  }
}