# WIA-FIN-004: RegTech Standard Specification v1.0

**Version:** 1.0.0
**Status:** Final
**Date:** January 2025
**Authors:** WIA Standards Committee
**Organization:** World Certification Industry Association (WIA)

---

## Abstract

This specification defines the WIA-FIN-004 RegTech Standard for regulatory technology and compliance automation in financial services. It provides comprehensive data formats, API specifications, security protocols, and integration guidelines for implementing automated compliance, AML/KYC verification, and real-time monitoring systems.

**Philosophy:** 弘益人間 (Benefit All Humanity)

---

## Table of Contents

1. [Introduction](#1-introduction)
2. [Scope](#2-scope)
3. [Normative References](#3-normative-references)
4. [Terms and Definitions](#4-terms-and-definitions)
5. [Data Formats](#5-data-formats)
6. [API Specifications](#6-api-specifications)
7. [Security Requirements](#7-security-requirements)
8. [Integration Guidelines](#8-integration-guidelines)
9. [Compliance](#9-compliance)
10. [Examples](#10-examples)

---

## 1. Introduction

### 1.1 Purpose

The WIA-FIN-004 RegTech Standard provides a unified framework for implementing regulatory technology solutions across financial institutions. This standard aims to:

- Reduce compliance costs through automation
- Standardize regulatory data formats and processes
- Enable interoperability between different compliance systems
- Support multi-jurisdiction regulatory requirements
- Facilitate real-time compliance monitoring and reporting

### 1.2 Background

Financial institutions face increasing regulatory complexity and compliance costs. Manual compliance processes are inefficient, error-prone, and difficult to scale. This standard addresses these challenges by providing a technology-first approach to regulatory compliance.

### 1.3 Design Principles

- **Automation First:** Maximize automation while maintaining human oversight
- **Interoperability:** Enable seamless integration between systems
- **Security:** Protect sensitive compliance data with robust security measures
- **Scalability:** Support institutions of all sizes and transaction volumes
- **Adaptability:** Allow for regional regulatory variations

---

## 2. Scope

This standard covers:

- **Compliance Automation:** Transaction monitoring, risk assessment, and rule enforcement
- **AML/KYC:** Anti-money laundering screening and customer verification
- **Regulatory Reporting:** Automated generation and submission of regulatory reports
- **Audit Trails:** Comprehensive logging and record keeping
- **Multi-jurisdiction Support:** Support for global regulatory frameworks

This standard does NOT cover:

- Specific regulatory requirements (which vary by jurisdiction)
- Internal risk management policies (which vary by institution)
- Non-financial regulatory compliance

---

## 3. Normative References

The following documents are referenced in this specification:

- ISO 8601: Date and time format
- ISO 3166: Country codes
- ISO 4217: Currency codes
- JSON Schema Draft 2020-12
- OAuth 2.0 (RFC 6749)
- TLS 1.3 (RFC 8446)
- GDPR (EU Regulation 2016/679)
- CCPA (California Civil Code §1798.100)

---

## 4. Terms and Definitions

### 4.1 Core Terms

- **RegTech:** Regulatory Technology - the use of technology to manage regulatory processes
- **AML:** Anti-Money Laundering
- **KYC:** Know Your Customer
- **PEP:** Politically Exposed Person
- **SAR:** Suspicious Activity Report
- **CTR:** Currency Transaction Report
- **SupTech:** Supervisory Technology - technology used by regulators

### 4.2 Data Terms

- **Compliance Event:** Any action or transaction subject to compliance review
- **Risk Score:** Numerical assessment of compliance risk (0-100)
- **Verification Status:** State of customer identity verification
- **Sanctions Match:** Positive identification in sanctions databases

---

## 5. Data Formats

### 5.1 Compliance Event Schema

```json
{
  "$schema": "http://json-schema.org/draft/2020-12/schema",
  "type": "object",
  "properties": {
    "eventId": {
      "type": "string",
      "format": "uuid",
      "description": "Unique event identifier"
    },
    "timestamp": {
      "type": "string",
      "format": "date-time",
      "description": "ISO 8601 timestamp"
    },
    "eventType": {
      "type": "string",
      "enum": ["transaction", "customer_action", "system_event"]
    },
    "jurisdiction": {
      "type": "string",
      "pattern": "^[A-Z]{2}$",
      "description": "ISO 3166-1 alpha-2 country code"
    },
    "riskScore": {
      "type": "number",
      "minimum": 0,
      "maximum": 100
    },
    "complianceFlags": {
      "type": "object",
      "properties": {
        "requiresReview": {"type": "boolean"},
        "requiresSAR": {"type": "boolean"},
        "requiresCTR": {"type": "boolean"}
      }
    }
  },
  "required": ["eventId", "timestamp", "eventType", "jurisdiction", "riskScore"]
}
```

### 5.2 Customer Record Schema

```json
{
  "type": "object",
  "properties": {
    "customerId": {
      "type": "string",
      "description": "Unique customer identifier"
    },
    "personalInfo": {
      "type": "object",
      "properties": {
        "fullName": {"type": "string"},
        "dateOfBirth": {"type": "string", "format": "date"},
        "nationality": {"type": "string", "pattern": "^[A-Z]{2}$"}
      },
      "required": ["fullName"]
    },
    "verification": {
      "type": "object",
      "properties": {
        "kycStatus": {
          "type": "string",
          "enum": ["pending", "verified", "rejected", "expired"]
        },
        "verificationDate": {"type": "string", "format": "date-time"},
        "documentType": {
          "type": "string",
          "enum": ["passport", "drivers_license", "national_id"]
        },
        "documentNumber": {"type": "string"}
      }
    },
    "riskProfile": {
      "type": "object",
      "properties": {
        "riskLevel": {
          "type": "string",
          "enum": ["low", "medium", "high", "prohibited"]
        },
        "isPEP": {"type": "boolean"},
        "sanctionsMatch": {"type": "boolean"},
        "lastReviewDate": {"type": "string", "format": "date-time"}
      }
    }
  },
  "required": ["customerId", "personalInfo", "verification", "riskProfile"]
}
```

### 5.3 Transaction Record Schema

```json
{
  "type": "object",
  "properties": {
    "transactionId": {"type": "string"},
    "timestamp": {"type": "string", "format": "date-time"},
    "amount": {"type": "number", "minimum": 0},
    "currency": {"type": "string", "pattern": "^[A-Z]{3}$"},
    "customerId": {"type": "string"},
    "type": {
      "type": "string",
      "enum": ["deposit", "withdrawal", "transfer", "payment"]
    },
    "jurisdiction": {"type": "string", "pattern": "^[A-Z]{2}$"},
    "metadata": {"type": "object"}
  },
  "required": ["transactionId", "timestamp", "amount", "currency", "customerId", "type"]
}
```

### 5.4 Regulatory Report Schema

```json
{
  "type": "object",
  "properties": {
    "reportId": {"type": "string"},
    "reportType": {
      "type": "string",
      "enum": ["sar", "ctr", "eft", "atr"]
    },
    "jurisdiction": {"type": "string", "pattern": "^[A-Z]{2}$"},
    "filingDate": {"type": "string", "format": "date-time"},
    "data": {"type": "object"},
    "narrative": {"type": "string"},
    "submissionStatus": {
      "type": "string",
      "enum": ["draft", "pending", "submitted", "accepted", "rejected"]
    },
    "confirmationNumber": {"type": "string"}
  },
  "required": ["reportId", "reportType", "jurisdiction", "data"]
}
```

---

## 6. API Specifications

### 6.1 RESTful API Endpoints

#### 6.1.1 Compliance Check

**Endpoint:** `POST /api/v1/compliance/check`

**Request:**
```json
{
  "transactionId": "string",
  "amount": "number",
  "currency": "string",
  "customerRiskProfile": "low | medium | high",
  "jurisdiction": "string"
}
```

**Response:**
```json
{
  "riskScore": "number (0-100)",
  "status": "pass | review | fail",
  "requiresSAR": "boolean",
  "requiresCTR": "boolean",
  "recommendation": "string",
  "timestamp": "ISO 8601 string"
}
```

#### 6.1.2 KYC Verification

**Endpoint:** `POST /api/v1/kyc/verify`

**Request:**
```json
{
  "customerId": "string",
  "documents": [{
    "type": "passport | drivers_license | national_id",
    "documentNumber": "string",
    "issuingCountry": "string",
    "image": "base64 string (optional)"
  }]
}
```

**Response:**
```json
{
  "status": "verified | pending | rejected",
  "confidence": "number (0-100)",
  "documentValid": "boolean",
  "identityMatch": "boolean",
  "nextAction": "string"
}
```

#### 6.1.3 AML Screening

**Endpoint:** `POST /api/v1/aml/screen`

**Request:**
```json
{
  "entity": {
    "name": "string",
    "type": "person | organization",
    "dateOfBirth": "string (optional)",
    "nationality": "string (optional)"
  }
}
```

**Response:**
```json
{
  "sanctionsMatch": "boolean",
  "pepStatus": "boolean",
  "watchList": "boolean",
  "riskLevel": "low | medium | high",
  "actionRequired": "string"
}
```

#### 6.1.4 Report Submission

**Endpoint:** `POST /api/v1/reports/submit`

**Request:**
```json
{
  "reportType": "sar | ctr | eft | atr",
  "reportId": "string",
  "data": "object",
  "narrative": "string",
  "jurisdiction": "string"
}
```

**Response:**
```json
{
  "status": "submitted | rejected",
  "confirmationNumber": "string",
  "timestamp": "ISO 8601 string"
}
```

### 6.2 Authentication

All API requests MUST include authentication using one of:

- **OAuth 2.0 Bearer Token:** `Authorization: Bearer <token>`
- **API Key:** `X-API-Key: <key>`

### 6.3 Rate Limiting

API endpoints are subject to rate limiting:

- Standard tier: 1,000 requests per hour
- Premium tier: 10,000 requests per hour
- Enterprise tier: Unlimited

Rate limit headers are included in responses:
```
X-RateLimit-Limit: 1000
X-RateLimit-Remaining: 999
X-RateLimit-Reset: 1640995200
```

---

## 7. Security Requirements

### 7.1 Transport Security

- **MUST** use TLS 1.3 or higher for all communications
- **MUST** validate SSL/TLS certificates
- **SHOULD** implement certificate pinning

### 7.2 Data Encryption

- **MUST** encrypt sensitive data at rest using AES-256
- **MUST** encrypt PII (Personally Identifiable Information) end-to-end
- **SHOULD** implement field-level encryption for high-sensitivity data

### 7.3 Access Control

- **MUST** implement role-based access control (RBAC)
- **MUST** enforce principle of least privilege
- **SHOULD** implement multi-factor authentication (MFA)

### 7.4 Audit Logging

- **MUST** log all compliance-related activities
- **MUST** include timestamp, user ID, action, and result in logs
- **MUST** protect audit logs from tampering (immutability)
- **SHOULD** retain logs for minimum 7 years

---

## 8. Integration Guidelines

### 8.1 Implementation Phases

1. **Assessment:** Evaluate current compliance processes
2. **Design:** Plan system architecture and data flows
3. **Development:** Implement APIs and integrations
4. **Testing:** Validate compliance rules and workflows
5. **Deployment:** Roll out to production environment
6. **Monitoring:** Continuous monitoring and optimization

### 8.2 Multi-jurisdiction Support

Implementations **MUST** support:

- Jurisdiction-specific compliance rules
- Localized regulatory report formats
- Regional data residency requirements
- Cross-border transaction monitoring

### 8.3 Legacy System Integration

Systems **SHOULD** provide:

- Adapter patterns for legacy system integration
- Data transformation utilities
- Backward compatibility where possible

---

## 9. Compliance

### 9.1 Regulatory Compliance

This standard supports compliance with:

- **US:** FinCEN, SEC, CFTC regulations
- **EU:** GDPR, MiFID II, AMLD5
- **UK:** FCA, PRA regulations
- **APAC:** MAS, HKMA, JFSA regulations

### 9.2 Data Privacy

Implementations **MUST** comply with:

- GDPR (General Data Protection Regulation)
- CCPA (California Consumer Privacy Act)
- Other applicable data privacy laws

### 9.3 Standards Compliance

This standard is compatible with:

- ISO 27001 (Information Security)
- SOC 2 Type II (Service Organization Controls)
- PCI DSS (Payment Card Industry Data Security Standard)

---

## 10. Examples

### 10.1 Complete Compliance Check Flow

```typescript
// 1. Initialize client
const client = new RegTechClient({
  apiKey: 'your-api-key',
  jurisdiction: 'US'
});

// 2. Check transaction compliance
const result = await client.checkCompliance({
  transactionId: 'TXN-001',
  amount: 15000,
  currency: 'USD',
  customerRiskProfile: 'medium'
});

// 3. Handle result
if (result.status === 'fail') {
  // Block transaction
  await blockTransaction(result.transactionId);
} else if (result.requiresSAR) {
  // Generate SAR
  await client.submitReport({
    reportType: 'sar',
    reportId: 'SAR-2025-001',
    data: result.details
  });
}
```

### 10.2 KYC Verification Flow

```typescript
// Verify customer documents
const kycResult = await client.verifyKYC({
  customerId: 'CUST-001',
  documents: [{
    type: 'passport',
    documentNumber: 'P12345678',
    issuingCountry: 'US'
  }]
});

if (kycResult.status === 'verified') {
  // Onboard customer
  await onboardCustomer('CUST-001');
} else if (kycResult.status === 'pending') {
  // Request additional documents
  await requestAdditionalDocuments('CUST-001');
}
```

---

## Appendix A: Change Log

| Version | Date | Changes |
|---------|------|---------|
| 1.0.0 | 2025-01 | Initial release |

---

## Appendix B: Contributors

This specification was developed by the WIA Standards Committee with contributions from:

- Financial institutions
- RegTech solution providers
- Regulatory authorities
- Compliance professionals
- Technology experts

---

**© 2025 SmileStory Inc. / WIA (World Certification Industry Association)**
**弘益人間 (홍익인간) · Benefit All Humanity**

For questions or feedback: standards@wia.org