Compliance & Governance Tools

Overview

The Compliance & Governance tools enable agents to perform regulatory validation and approval workflows across multiple compliance frameworks. These tools ensure all high-risk operations maintain audit trails, segregation of duties, and regulatory compliance. Supported regulatory frameworks:

SOX (Sarbanes-Oxley): Segregation of duties requirements
ASIC RG94: NAV tolerance and valuation frequency requirements
AIFMD: Alternative Investment Fund Managers Directive compliance

Regulatory Frameworks

SOX Compliance (Sarbanes-Oxley)

Enforces segregation of duties to prevent conflicts of interest. Key rules:

Same user cannot initiate and approve transactions
Risk-based approval chains required
All actions logged with immutable audit trails
Enforcement through role-based access control

ASIC RG94

Australian Securities and Investments Commission guidance for fund managers. Validates:

Net Asset Value (NAV) tolerance within acceptable ranges
Valuation frequency requirements (daily/weekly based on fund type)
Consistent valuation methodologies
Timely disclosure of pricing discrepancies

AIFMD

European Union regulatory framework for Alternative Investment Fund Managers. Ensures:

Proper valuation procedures documented
Fair pricing of fund assets
Risk management compliance
Regular compliance reporting

Quick Start

Basic Compliance Check

# Check if action complies with all regulations
response = agent.invoke({
    "messages": [{
        "role": "user",
        "content": "Check if this transaction is compliant",
        "tool_call": {
            "tool": "check_compliance",
            "args": {
                "action_type": "transaction",
                "action_data": {
                    "amount": 50000,
                    "counterparty": "vendor_123",
                    "transaction_type": "payment"
                },
                "user_id": "user_456"
            }
        }
    }]
})

Approval Workflow

# Step 1: Request approval for high-risk action
approval_request = agent.invoke({
    "tool": "request_approval",
    "args": {
        "action_type": "override",
        "action_data": {"reason_code": "market_exception"},
        "requested_by": "user_123",
        "reason": "Market volatility exceeds normal parameters"
    }
})

# Step 2: Review pending approvals
pending = agent.invoke({
    "tool": "get_pending_approvals",
    "args": {"approver_id": "manager_789"}
})

# Step 3: Submit approval decision
decision = agent.invoke({
    "tool": "submit_approval",
    "args": {
        "request_id": approval_request["request_id"],
        "approver_id": "manager_789",
        "approved": True,
        "comments": "Exception approved due to market conditions"
    }
})

Tool Reference

check_compliance

Validates actions against regulatory requirements before execution. Input Schema:

{
    "action_type": "string (approval|validation|transaction|override|etc)",
    "action_data": "dict (action-specific details)",
    "user_id": "string (optional, user performing action)"
}

Response:

{
    "success": "boolean",
    "compliant": "boolean",
    "can_proceed": "boolean",
    "rules_checked": "number",
    "requires_approval": "boolean",
    "violations": "string (formatted violations)",
    "details": "array (detailed violation objects)",
    "message": "string"
}

Action Types:

approval: Multi-level approval requests
validation: Data validation operations
transaction: Financial transactions
override: Regulatory override requests
report: Compliance reporting

Returns:

compliant=true: Action passes all checks, safe to proceed
compliant=false, requires_approval=true: Use request_approval tool
compliant=false, requires_approval=false: Action violates mandatory rules

Example - Transaction Compliance Check:

result = check_compliance(
    action_type="transaction",
    action_data={
        "amount": 100000,
        "recipient": "counterparty_001",
        "fund_id": "fund_123",
        "valuation_date": "2025-10-29"
    },
    user_id="trader_456"
)

# Response:
{
    "success": True,
    "compliant": True,
    "can_proceed": True,
    "rules_checked": 12,
    "message": "Action complies with all 12 applicable rules"
}

Example - Compliance Violation:

result = check_compliance(
    action_type="transaction",
    action_data={
        "amount": 50000000,  # Exceeds SOD limits
        "recipient": "user_123",  # Same user as initiator
        "fund_id": "fund_123"
    },
    user_id="user_123"
)

# Response:
{
    "success": True,
    "compliant": False,
    "requires_approval": True,
    "can_proceed": False,
    "violations": "- SOX (SOD-001): Cannot approve own transaction\n- SOX (SOD-003): Amount exceeds daily limit",
    "details": [
        {
            "regulation": "SOX",
            "rule_code": "SOD-001",
            "description": "Cannot approve own transaction"
        },
        {
            "regulation": "SOX",
            "rule_code": "SOD-003",
            "description": "Amount exceeds daily limit"
        }
    ]
}

request_approval

Creates an approval request for high-risk actions or compliance overrides. Input Schema:

{
    "action_type": "string (required)",
    "action_data": "dict (required)",
    "requested_by": "string (required, user ID)",
    "reason": "string (optional)"
}

Response:

{
    "success": "boolean",
    "approval_requested": "boolean",
    "request_id": "string (UUID)",
    "required_role": "string (role needed to approve)",
    "expires_at": "ISO timestamp",
    "message": "string"
}

Required Roles by Action Type:

override: Manager or Compliance Officer
validation: Compliance Officer
transaction (high-value): Director or Officer
approval: Next approval level up

Example - Request Override Approval:

result = request_approval(
    action_type="override",
    action_data={
        "nav_variance": 0.15,  # 0.15% above tolerance
        "fund_id": "fund_123",
        "resolution": "accept_variance"
    },
    requested_by="portfolio_mgr_001",
    reason="Market volatility caused NAV variance outside normal range"
)

# Response:
{
    "success": True,
    "approval_requested": True,
    "request_id": "req_f8d2a9c1-e4b5-4c3e-9f2a-1b3d5e7f9a1c",
    "required_role": "Compliance Officer",
    "expires_at": "2025-10-31T10:29:00Z",
    "message": "Approval request created. Requires approval from user with role: Compliance Officer"
}

submit_approval

Submits an approval or rejection decision for a pending request. Enforces segregation of duties. Input Schema:

{
    "request_id": "string (required, UUID)",
    "approver_id": "string (required, user ID)",
    "approved": "boolean (required)",
    "comments": "string (optional)"
}

Response:

{
    "success": "boolean",
    "request_id": "string",
    "status": "string (approved|rejected|expired)",
    "message": "string"
}

Constraints:

Approver must have required role
Cannot approve request initiated by same user (SOX segregation)
Request must not be expired
Comments required for rejections

Example - Approve Request:

result = submit_approval(
    request_id="req_f8d2a9c1-e4b5-4c3e-9f2a-1b3d5e7f9a1c",
    approver_id="compliance_officer_002",
    approved=True,
    comments="Variance approved. Market conditions support NAV deviation."
)

# Response:
{
    "success": True,
    "request_id": "req_f8d2a9c1-e4b5-4c3e-9f2a-1b3d5e7f9a1c",
    "status": "approved",
    "message": "Request approved successfully"
}

Example - Reject Request:

result = submit_approval(
    request_id="req_abc123",
    approver_id="compliance_officer_002",
    approved=False,
    comments="NAV variance exceeds acceptable threshold. Requires revaluation."
)

get_pending_approvals

Retrieves pending approval requests for a specific user based on their role. Input Schema:

{
    "approver_id": "string (required, user ID)"
}

Response:

{
    "success": "boolean",
    "pending_count": "number",
    "message": "string",
    "requests": [
        {
            "request_id": "string (UUID)",
            "action_type": "string",
            "requested_by": "string (user ID)",
            "required_role": "string",
            "risk_level": "string (low|medium|high|critical)",
            "expires_at": "ISO timestamp"
        }
    ]
}

Risk Levels:

low: Routine validations
medium: Standard transactions
high: High-value or sensitive operations
critical: Multi-level approvals or regulatory overrides

Example - Check Pending Approvals:

result = get_pending_approvals(
    approver_id="manager_789"
)

# Response:
{
    "success": True,
    "pending_count": 3,
    "message": "Found 3 pending approval request(s)",
    "requests": [
        {
            "request_id": "req_f8d2a9c1-e4b5-4c3e-9f2a-1b3d5e7f9a1c",
            "action_type": "override",
            "requested_by": "portfolio_mgr_001",
            "required_role": "Manager",
            "risk_level": "high",
            "expires_at": "2025-10-31T10:29:00Z"
        },
        {
            "request_id": "req_2b4c5d6e-7f8g-9h0i-1j2k-3l4m5n6o7p8q",
            "action_type": "validation",
            "requested_by": "analyst_555",
            "required_role": "Manager",
            "risk_level": "medium",
            "expires_at": "2025-10-30T15:45:00Z"
        }
    ]
}

generate_compliance_report

Generates regulatory compliance reports for audit and governance purposes. Input Schema:

{
    "report_type": "string (sox_audit|rg94_validation|aifmd|agent_activity|approval_workflow)",
    "period_days": "number (default: 30)",
    "user_id": "string (optional, user generating report)"
}

Response:

{
    "success": "boolean",
    "report_id": "string (UUID)",
    "report_type": "string",
    "period": "string",
    "generated_at": "ISO timestamp",
    "summary": "object (framework-specific)",
    "message": "string"
}

Report Types:

sox_audit: SOX compliance audit
- Segregation of duty violations
- Approval chain completeness
- User access changes
- High-risk transaction approvals
rg94_validation: ASIC RG94 validation
- NAV variance by fund
- Valuation frequency compliance
- Pricing discrepancies
- Fund-specific metrics
aifmd: AIFMD compliance
- Valuation procedure adherence
- Risk management compliance
- Fee disclosure accuracy
- Leverage limits
agent_activity: Agent action summary
- Tool usage statistics
- Approval rates
- Error counts
- User activity summary
approval_workflow: Approval process audit
- Pending request count
- Approval time metrics
- Rejection rates
- Role-based distribution

Example - Generate SOX Audit Report:

result = generate_compliance_report(
    report_type="sox_audit",
    period_days=30,
    user_id="audit_user_123"
)

# Response:
{
    "success": True,
    "report_id": "rpt_8f3c2a1e-9d4b-4c7f-8e9a-2b3d5f7c8e9f",
    "report_type": "sox_audit",
    "period": "30 days",
    "generated_at": "2025-10-29T14:30:00Z",
    "summary": {
        "total_transactions": 1250,
        "approvals_required": 156,
        "approvals_obtained": 156,
        "violations_found": 0,
        "average_approval_time": "4.2 hours",
        "segregation_compliance": "100%"
    },
    "message": "Generated sox_audit report for 30 day period"
}

Example - Generate RG94 Report:

result = generate_compliance_report(
    report_type="rg94_validation",
    period_days=7
)

# Response:
{
    "success": True,
    "report_id": "rpt_abc123def456",
    "report_type": "rg94_validation",
    "period": "7 days",
    "generated_at": "2025-10-29T14:30:00Z",
    "summary": {
        "funds_analyzed": 12,
        "nav_variance_events": 2,
        "max_variance": 0.12,
        "valuation_frequency_compliance": 98.5,
        "pricing_discrepancies": 1,
        "compliant_funds": 11
    }
}

verify_audit_integrity

Verifies the integrity of the audit trail using cryptographic hashing to detect tampering. Input Schema:

{}

Response:

{
    "success": "boolean",
    "integrity_verified": "boolean",
    "events_verified": "number",
    "last_event_hash": "string (SHA-256 hex)",
    "error": "string (if verification fails)",
    "event_id": "string (failing event UUID, if applicable)",
    "message": "string"
}

Technical Details:

Uses SHA-256 blockchain-inspired hash chaining
Each event contains hash of previous event
Verifies entire chain integrity
Returns error at first tampering detection
Prevents retroactive audit manipulation

Example - Successful Verification:

result = verify_audit_integrity()

# Response:
{
    "success": True,
    "integrity_verified": True,
    "events_verified": 4823,
    "last_event_hash": "a3f5c8d2e9b1f4c7a9d5e2b8f1c4a7d9e2b5f8a1c4d7a0e3f6b9c2d5e8f1a4",
    "message": "Audit trail integrity verified. 4823 events checked."
}

Example - Integrity Failure (Critical):

result = verify_audit_integrity()

# Response:
{
    "success": True,
    "integrity_verified": False,
    "error": "Hash chain broken at event 2847",
    "event_id": "evt_2847",
    "message": "CRITICAL: Audit trail integrity FAILED - Hash chain broken at event 2847"
}

Approval Workflow Details

Request Lifecycle

Create: request_approval initiates request with required_role
Pending: Request appears in approver’s queue via get_pending_approvals
Approve/Reject: submit_approval with decision
Expire: Requests expire after 48 hours if not processed
Log: All transitions recorded in audit trail

Role-Based Access

Approval routing based on risk level and action type:

Action Type	Risk Level	Required Role	Approval Time
validation	low	Analyst	4 hours
validation	medium	Manager	4 hours
transaction	low	Manager	2 hours
transaction	high	Director	1 hour
override	any	Compliance Officer	2 hours
approval	critical	Officer+	30 min

Segregation of Duties

Initiator cannot approve own requests
Same role cannot form full approval chain
Director approval bypasses Manager approval
All decisions require documented justification

Error Handling

Common Errors

Compliance Check Fails:

{
    "success": False,
    "error": "Database connection failed",
    "message": "Compliance check failed: Unable to reach database"
}

Approval Permission Denied:

{
    "success": False,
    "error": "User role insufficient for approval",
    "message": "Approval failed: User role insufficient for approval"
}

Request Expired:

{
    "success": False,
    "error": "Approval request expired",
    "message": "Approval submission failed: Approval request expired"
}

Best Practices

Always Check Compliance First: Call check_compliance before executing high-risk operations
Include Context: Provide detailed action_data and reason for approval requests
Monitor Expiry: Check expires_at on approval requests before submitting
Segregate Duties: Ensure approvers differ from requesters
Audit Regularly: Generate compliance reports weekly for governance oversight
Verify Integrity: Run verify_audit_integrity monthly to detect tampering

Configuration

All tools authenticate via JWT token in RunnableConfig:

config = {
    "configurable": {
        "jwtToken": "eyJhbGciOiJIUzI1NiIs..."
    }
}

Tokens required for:

Supabase authentication
User role verification
Audit trail access
Report generation

Agent System Overview

Available Agents

Integration Patterns

Agent Tools & Capabilities

Compliance & Governance Tools

Overview

Regulatory Frameworks

SOX Compliance (Sarbanes-Oxley)

ASIC RG94

AIFMD

Quick Start

Basic Compliance Check

Approval Workflow

Tool Reference

check_compliance

request_approval

submit_approval

get_pending_approvals

generate_compliance_report

verify_audit_integrity

Approval Workflow Details

Request Lifecycle

Role-Based Access

Segregation of Duties

Error Handling

Common Errors

Best Practices

Configuration

Agent System Overview

Available Agents

Integration Patterns

Agent Tools & Capabilities

​Overview

​Regulatory Frameworks

​SOX Compliance (Sarbanes-Oxley)

​ASIC RG94

​AIFMD

​Quick Start

​Basic Compliance Check

​Approval Workflow

​Tool Reference

​check_compliance

​request_approval

​submit_approval

​get_pending_approvals

​generate_compliance_report

​verify_audit_integrity

​Approval Workflow Details

​Request Lifecycle

​Role-Based Access

​Segregation of Duties

​Error Handling

​Common Errors

​Best Practices

​Configuration

​Related Tools

Overview

Regulatory Frameworks

SOX Compliance (Sarbanes-Oxley)

ASIC RG94

AIFMD

Quick Start

Basic Compliance Check

Approval Workflow

Tool Reference

check_compliance

request_approval

submit_approval

get_pending_approvals

generate_compliance_report

verify_audit_integrity

Approval Workflow Details

Request Lifecycle

Role-Based Access

Segregation of Duties

Error Handling

Common Errors

Best Practices

Configuration

Related Tools