Jurisdictional Logic System for Automated Financial Compliance
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
The complexity of international financial transactions is hindered by varying country-based regulations, requiring a system to automate and ensure compliance across different jurisdictions.
Innovation Solution
A method and system that generate a jurisdictional definition file based on financial regulatory requirements, creating a configurable transaction array to assess transaction feasibility using a decision tree, and determining necessary remediation steps to facilitate or block transactions accordingly, while updating regulatory files as requirements change.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If manual compliance checking is performed for international transactions, then regulatory accuracy can be maintained, but processing time and operational complexity increase significantly
Solution Approach 1:
The patent replaces manual mechanical compliance checking with an automated computer-based system that uses decision trees and jurisdictional definition files to evaluate transactions against regulatory requirements, thereby maintaining accuracy while reducing processing time
Solution Approach 2:
The system enables self-service compliance checking by automatically generating compliance assessments, required documentation lists, and remediation step recommendations without requiring manual intervention from compliance officers
2Reliability
If comprehensive regulatory requirements for all countries are implemented, then compliance coverage is improved, but system complexity increases
Solution Approach 1:
The patent segments the complex regulatory framework into manageable jurisdictional definition files for each country, with each file containing specific regulatory requirements, decision tree nodes, and remediation steps that can be independently maintained and updated
Solution Approach 2:
The system uses a universal decision tree structure and configurable transaction array that can handle multiple country-specific regulatory requirements through a single unified platform, reducing overall system complexity while maintaining comprehensive coverage
3Speed
If real-time compliance checks are performed, then transaction feasibility is determined quickly, but computational resources are consumed
Solution Approach 1:
The patent performs preliminary actions by pre-compiling jurisdictional definition files and decision tree structures during off-peak times, so that real-time compliance checks can quickly reference pre-prepared data without performing complex computations from scratch
Data Source
AI summary
Described is a method and system for automating financial regulatory compliance. The described subject generates a jurisdictional definition file based on a plurality of financial regulatory requirement for a plurality of countries. Responsive to receiving a transaction request, the method and system further generate a configurable transaction array for the transaction request that is a subset of the jurisdictional definition file based on a sender information and a receiver information. The jurisdiction logic system and method described above further maps the sender information and the receiver information into the configurable transaction array. Lastly, the jurisdiction logic system determines whether the transaction request will succeed or fail by using a decision tree that is populated by the configurable transaction array.