Regulatory Report Compiler

The compiler automatically pulls raw transaction, wallet, and on-chain event data from multiple sources—including blockchain nodes, indexers, and internal databases—into a single, structured dataset. This eliminates manual data collection, which is prone to error and scale limitations.

• Sources: Direct RPC calls, subgraphs, internal ledger systems.
• Example: Compiling all DeFi transactions for a user across 10 protocols to calculate capital gains.

At its core is a configurable rule engine that applies jurisdiction-specific logic to raw data. It translates legal requirements (e.g., Travel Rule thresholds, MiCA liquidity reporting) into executable code that filters, categorizes, and flags transactions.

• Key Function: Determines if a transaction is reportable based on asset type, amount, and counterparty jurisdiction.
• Output: Creates a pre-formatted data layer ready for submission templates.

Ensures data integrity before report generation. This involves cross-referencing internal records with on-chain state, validating wallet addresses, and reconciling balances to prevent discrepancies that could lead to compliance failures.

• Processes: Hash validation, balance attestation, anomaly detection for suspicious activity.
• Critical for: Audits and providing a verifiable data trail to regulators.

Transforms the validated, rule-processed data into the exact file formats and schemas required by regulators. A robust compiler supports various outputs to avoid manual reformatting.

• Common Formats: XML (e.g., for FATF-style reports), CSV, PDF, and direct API submissions to regulator portals.
• Adaptability: Can be reconfigured for new reporting standards like the SEC's Form PF updates or EMIR.

Maintains a complete, tamper-evident record of all data sources, transformations, and rule applications used to generate each report. This audit trail is essential for demonstrating compliance processes during examinations.

• Components: Timestamps, data provenance hashes, user access logs, and version history of applied rules.
• Foundation: Provides the evidence for a regulator's "show your work" request.

Designed to plug into a firm's existing tech stack, not replace it. It acts as a middleware layer between core systems (like the trading ledger, KYC platform, and risk engine) and the regulator.

• Common Integrations: ERP systems (SAP, Oracle), CRM platforms, and internal data lakes.
• Benefit: Creates a single source of truth for compliance reporting across the organization.

The core component that pulls raw transaction and position data from multiple sources, including on-chain explorers, exchange APIs, and internal ledgers. It must handle diverse data formats and perform normalization and reconciliation to create a single source of truth before report generation.

• Key Function: Ingests and unifies disparate data streams.
• Challenge: Managing latency and consistency across data sources.

A rules-based system that encodes jurisdictional regulations (e.g., FATF Travel Rule, MiCA, SEC rules) into executable logic. It applies these rules to aggregated data to identify reportable events, calculate required metrics, and ensure the output adheres to the mandated schema and taxonomy.

• Example: Flagging transactions above a threshold for Travel Rule reporting.
• Output: Structured data ready for the formatting layer.

A mandatory feature that creates a cryptographically verifiable record of all data inputs, transformations, and submission attempts. This immutable audit log is essential for demonstrating compliance to auditors and regulators, providing non-repudiation and data provenance.

• Implementation: Often uses hash chains or writes to an immutable data store.
• Purpose: Answers the question "How was this report derived?"

The interface responsible for the final transmission of compiled reports to regulatory portals or APIs. It must handle authentication (e.g., digital certificates), encryption, acknowledgment receipts, and retry logic for failed submissions. Security and reliability are paramount.

• Protocols: Often uses REST APIs or SFTP with PGP encryption.
• Critical: Ensuring data in transit security and maintaining submission receipts as proof of compliance.

The compiler must validate generated reports against the exact XML, JSON, or CSV schemas specified by the regulator (e.g., ISO 20022). Furthermore, its architecture must be modular to allow rapid adaptation to new or updated reporting requirements without a full system overhaul.

• Tooling: Often integrates schema validation libraries (XSD, JSON Schema).
• Requirement: A configuration layer to manage rule and schema versions.

The core software component that automates the application of regulatory rules and business logic to raw transaction data. It is the processing layer that a report compiler depends on to identify reportable events, calculate obligations, and flag anomalies. Key functions include:

• Rule Execution: Applying jurisdiction-specific regulations (e.g., Travel Rule, FATF guidelines).
• Data Enrichment: Appending required metadata (e.g., VASP identifiers, beneficiary details).
• Risk Scoring: Flagging transactions for further review based on predefined risk parameters.

A key anti-money laundering (AML) regulation requiring Virtual Asset Service Providers (VASPs) to share originator and beneficiary information for transactions above a certain threshold. A regulatory report compiler must be configured to:

• Identify Travel Rule Triggers: Detect cross-border or cross-VASP transfers exceeding the jurisdictional threshold (e.g., $/€1,000).
• Format & Transmit Data: Package the required PII (Personally Identifiable Information) into standard formats like IVMS 101.
• Log Compliance: Create an immutable audit trail of all requests sent and received, which is a primary output of the compiler.

A surveillance system that analyzes transaction patterns to detect suspicious activity. It is a critical upstream data source for a report compiler. The TMS identifies patterns indicative of money laundering, terrorist financing, or sanctions evasion, generating alerts and Suspicious Activity Reports (SARs). The compiler aggregates these outputs for submission to regulators. Key integration points include:

• Alert Data: Ingesting flagged transactions and associated risk scores.
• Case Management: Pulling finalized investigation summaries and filing decisions.

The regulated entity (e.g., exchange, custodian) that is legally obligated to produce reports. The regulatory report compiler is the internal tool a VASP uses to fulfill its reporting duties to financial intelligence units (FIUs) and other authorities. Compliance requirements vary by how a jurisdiction defines a VASP, but typically include:

• Licensing Obligations: Demonstrating active compliance to maintain operational licenses.
• Reporting Scope: Determining which entity-level and transaction-level reports (e.g., capital, liquidity, transaction ledgers) are required.

An immutable, timestamped record of all data inputs, rule applications, and report generations performed by the compiler. This is the forensic ledger that proves the accuracy and integrity of submitted reports. It enables:

• Regulatory Examination: Providing verifiable proof of compliance processes.
• Internal Reconciliation: Allowing compliance officers to trace any figure in a final report back to the original on-chain transaction or user record.
• Non-Repudiation: Ensuring actions and submissions cannot be denied after the fact.

The national agency responsible for receiving, analyzing, and disseminating financial intelligence, including the reports generated by a compiler. Examples include FinCEN (USA), FIU-Netherlands, and AUSTRAC (Australia). The compiler's output format and transmission protocol (e.g., API, secure portal) must align with the specific technical requirements of the relevant FIU. Their role closes the compliance loop:

• Report Reception: Accepting structured data submissions (SARs, CTRs).
• Analysis & Enforcement: Using compiled data to investigate financial crimes.