Compliance Processor

Compliance Processor (CP) stands as the cornerstone of the sendme Protocol. It is a smart contract deployed on a chain that serves as an automation layer of compliance execution related to any transactions of regulated digital currency. Procedures and rules that the Compliance Processor executes may be created by such parties as a user, an entity, or an issuer of the digital currency. The Compliance Processor approves a transaction or fails it when conditions are not met automatically, meaning no intermediaries are required.

Compliance Processor

All the policies associated with digital currency or wallets related to the transaction will be executed by the Compliance Processor. For example, when a user attempts to transfer a certain amount of digital currency abroad, the Compliance Processor will execute the policies related to the regulations of both countries required for this transaction.

The Compliance Processor is flexible and capable of working both with static data (e.g., OFAC-listed wallets or KYC approval) and dynamic rules (e.g., transaction limits over a period of time).

Depending on the rules defined within a policy, the Compliance Processor can either fail or commit a transaction. Some parties may find it useful to have rules that may emit a warning. The transaction is not entirely blocked in such cases, yet the event is emitted for further investigation/analytics.

Apart from the policies deployed on a chain, the Compliance Processor relies on user Properties that may be emitted by Validators (see more on the roles below). Regular users or entities also have the ability to create their policies and manage this way, for instance, blacklists or whitelists.