Compliance checking in the open payments ecosystem

Abstract

Given the strict legal frameworks which regulate the movements and

management of funds, building financial applications typically proves to be prohibitively expensive for small companies. Not only is it the case that understanding legal requirements and building a framework of compliance checks to ensure

that such legislation is adhered to is a complex process, but also, service providers such as banks require certification and reporting before they are willing to take on

the risks associated with the adoption of applications from small application developers. In this paper, we propose a solution which provides a centralised Open

Payments Ecosystem which supports compliance checking and allows for the

matching of financial applications with service providers and programme managers, automatically providing risk analysis and reporting. The solution proposed

combines static and dynamic verification in a real-life use case, which can shed

new insights on the use of formal methods on large complex systems. We also report on the software engineering challenges encountered when analysing formal

requirements arising from the needs of compliance to applicable legislation.