Building a comprehensive compliance infrastructure that meets regulatory requirements while enabling efficient operations.

🎯 Executive Overview

A robust compliance framework forms the foundation of safe stablecoin operations. This phase focuses on developing processes that satisfy regulatory requirements while maintaining operational efficiency. The framework must be both comprehensive and adaptable to evolving regulatory landscapes.

🔍 A. AML/KYC Process Design

Comprehensive Risk-Based Approach

The AML/KYC framework must balance regulatory compliance with operational efficiency. We'll implement a tiered approach that adjusts due diligence requirements based on transaction risk profiles.

1. Customer Due Diligence Framework

graph TD
    A[Initial Assessment] --> B[Risk Scoring]
    B --> C[Due Diligence Level]
    C --> D[Basic KYC]
    C --> E[Enhanced DD]
    C --> F[Advanced DD]
    D --> G[Ongoing Monitoring]
    E --> G
    F --> G

2. 📊 Risk Assessment Matrix

Risk Factor Low Risk Medium Risk High Risk
Geography Tier 1 Tier 2 Tier 3
Volume <$100K/day $100K-1M/day >$1M/day
Entity Type Listed Corp Private Corp Complex Structure
Activity Standard Complex High-Risk

Implementation Guidelines: Understanding the nuanced requirements of KYC in the stablecoin context requires special consideration of:

  1. Digital identity verification methods
  2. Blockchain address attribution
  3. Cross-border transaction flows
  4. Ultimate beneficial ownership tracking

🔄 B. Transaction Monitoring Framework

Real-Time Risk Detection

The transaction monitoring system must provide comprehensive coverage while minimizing false positives. We'll implement a multi-layered approach that combines traditional and blockchain-specific monitoring.

1. Monitoring Architecture