Global Compliance 200+ Jurisdiction

[IMPACT] Please describe your proposed solution.

The Legal & Financial regulations such as KYC/KYB/AML/OFAC/FINCEN require that professionals make an effort to verify the identity, suitability, and risks involved with maintaining a business relationship.

This project is to provide an Issuer in the Decentralized Identity ecosystem that delivers a Verified Credential as the result of a KYC onboarding process. The result of the KYC process will be delivered by a trusted service provider. In brief, this project involve two main activities, business and technical:

1. Business: Research, negotiate and close a deal with a trusted company to provide the Compliance onboarding resources (API)
2. Technical: Implement an AGENT that act as a REVIEWER that can provide a Regulatory Compliance monitoring process and monitor legal and financial regulations.

[IMPACT] Please describe how your proposed solution will address the Challenge that you have submitted it in.

We are delivering a Compliance-as-a-Service model that helps users to mitigate risks as much as possible while complying with regulations. Users may go through the KYC verification process and receive a credential that can be shown to other parties as a proof of having passed the KYC process. Once approved, there is a list of compliance and monitoring services that are available. This scenario is a real use case of a using RegTech and risk management to prevent or mitigate the concerns around regulation, usability, and adoption.

Optional Compliance Features:

• Transaction Monitoring

• Case Management

• SAR e-Filings

• CTF e-Filings

• 314a & 314b

• AML Monitoring

• Reg-E Monitoring

• Complaints Management – coming soon

• UDAAP Monitoring and management

• Daily OFAC monitoring

Reconciliation Features:

• Program TrueUp

• Roll-forwards (Daily, Weekly, Monthly, Quarterly)

• Network Settlement (Daily, Weekly, Monthly, Quarterly)

• Automated Money Movement

• Transaction Reconciliation (drops and double post)

• Quarterly VISA, Mastercard reports

• Revenue Calculation Reports

• Automated Billing & Invoicing - coming soon

This applies to wallet and treasury ecosystems.

[IMPACT] What are the main risks that could prevent you from delivering the project successfully and please explain how you will mitigate each risk?

The team is aware of the risk involved when dealing with contractual terms with financial related institutions. Base on the experience, we will implement a strategy to look for companies with diverse approach to the service (i.e. more financial vs more technical) and with a variety of position in the market (i.e well established with traditional models vs new and innovative flexible companies)

[FEASIBILITY] Please provide a detailed plan, including timeline and key milestones for delivering your proposal.

Please provide a detailed plan and timeline for delivering the solution.

The project is divided into two main tasks, the first one is related to business matters and the second related to the technological implementation.

BUSINESS TASK: Deal with a Reg and Compliance service provider. Relevant activities in this task are:

• Research potential service provider candidates
• Negotiate a service agreement and close deal
• Sign contract
• Bring marketing and technical information

ESTIMATED DURATION: 4 weeks

TECHNICAL TASK: Implement Compliance Module. Relevant activities in this task are:

• Develop the Agent capable of receiving requests and submitting Credentials
• Develop the connector to the service provider dashboard
• Deploy the system on cloud
• Provide demo and documentation

ESTIMATED DURATION: 10 weeks

TOTAL DURATION: 14 weeks

[FEASIBILITY] Please provide a detailed budget breakdown.

Answer

The budget is composed as follows:

• 60 hours of business work at rate $100/hr: USD 6.000
• 200 development hours at rate $80/hr: USD 16.000
• Purchase of initial licenses for trials and demos: $3.500 (estimated minimum commitment)
• Cloud infrastructure (1 year): USD 2.800

TOTAL BUDGET: $26700

[FEASIBILITY] Please provide details of the people who will work on the project.

The team working on this project is composed by Deryck Lance and Patrick Rivenbank working on the business side of the project and Rodolfo Miranda on the technical side.

Deryck Lance: https://www.linkedin.com/in/deryck-lance-9405898/

Deryck Lance is an Entrepreneur with 18 years experience in the insurance and risk industry, Founder of Quasar Risk Advisors, an independent insurance brokerage and Gig Guard, an insurtech engineering studio specializing in the design of embedded insurance for platform businesses. His journey into blockchain began working with Etherisc, a parametric based smart contract risk protocol in 2017.

Patrick Rivenbank: https://www.linkedin.com/in/privenbark/

Rodolfo Miranda: https://www.linkedin.com/in/rodolfomiranda/

His background includes a MS EE degree at Stanford University and more than 25 years of successful work experience in both large multinational companies and owned startup projects. His main activities involve architecting, developing, and implementing large scale software solutions for the Telecommunication Industry. Lately, he was engaged in blockchain technologies and joined Cardano community where he:

• Submitted and received funding for the following proposals:
• F6: Interoprability as Growth Driver
• F7: Odoo Plugin
• F7: Interoperability Within Atala Prism
• F7: Hyperledger-Prism Interoperability
• F7: Open Source Credential Wallet
• Participate as Community Advisor (from F6) and vCA (from F7), and is involved in many improvement working groups and discussions
• Is part of the Challenge Team for Fund 7 challenge "Grow Latinamerica, Grow Cardano"
• Is part of the Challenge Team for Fun 8 challenge “Self-Sovereign Identity”
• Was part of the first cohort of the Atala Prism Pioneer Program
• Is part of the team that created the LATAM Cardano Community and host a weekly LATAM TownHall

[FEASIBILITY] If you are funded, will you return to Catalyst in a later round for further funding? Please explain why / why not.

If we are funded for this proposal, we should not have to return for future funding as long as the service is incorporated into the community and the business model is successful.

[FEASIBILITY] Are you or any member of your team working on any other proposals in this Fund9?

[FEASIBILITY] Are you or your team working on any other proposals from previous Funds?

[AUDITABILITY] Please describe what you will measure to track your project's progress, and how will you measure these?

This team adopts Agile methodology based on the tools provided by github. Besides progress reports, the advancement will be tracked by github issues, project views (like Kanban board) and commits. Intermediate progress will be reported as Sprint Burndown, a KPI metric that shows the progress as percentage of each development sprint.

[AUDITABILITY] What does success for this project look like?

The success of the project is the release of the Proof of Concept system that will allow us to showcase demos and trials of AML/BSA, FINCEN Reporting, OFAC/PEP/Sanctions along with transaction monitoring, case management, and UDAAP alerts.

[AUDITABILITY] Please provide information on whether this proposal is a continuation of a previously funded project in Catalyst or an entirely new one.

This is a new proposal however it is pulling from this funded proposal focused on KYC.

https://cardano.ideascale.com/c/idea/398768