Provable Compliance: A Protocol for Runtime Compliance Evidence and Transaction-Specific Decisioning

Abstract

Regulated institutions already perform onboarding, screening, monitoring, and review, but compliance evidence ages, and whether it supports a decision depends on the institution, product, subject, counterparty, transaction, jurisdiction, risk tier, and purpose. A relying party therefore often cannot obtain compact, attributable proof of which evidence, policy, authority, and transaction context were current when a decision was made, a gap that grows as authority is delegated to software agents and scheduled workflows. We describe ChainIT Provable Compliance, the compliance-side layer of the ChainIT Authority Protocol. Each sourced or institution-generated fact is represented as a separate Evidence Assertion VDT with provenance, freshness, confidence, permitted purpose, and privacy classification; a versioned Compliance Policy Profile selects the applicable rules; a Business Rules Engine returns deterministic, reason-coded predicate results; and the organization's configured Workflow Engine composes them into a signed, time-bounded Compliance Decision VDT for one reliance event. The decision contributes a single predicate, Compliance Decision Permits, to session-eligibility and transaction-policy decisions. It never independently authorizes payment: only a final Allow together with an exact transaction digest, atomic capacity reservation, and a single-use execution credential can commit value. The paper specifies point-of-reliance freshness, scoped propagation of evidence changes, decision states, evidence domains (AML, sanctions, PEP, background, identity, and licensing), the U.S. and FATF regulatory context as of August 2026, privacy and disclosure controls, and residual risks.