HAREFin
HAREFin is designed to provide runtime governance for financial AI—intended to support hard fences on money movement, evidence trails for SAR filings, and cross-border data sovereignty.
Sector Disclaimer: Vertical examples illustrate intended application domains. Sector-specific compliance requires independent legal and technical validation.
The Challenge
AML investigators want AI to help analyze patterns and draft SARs. But regulators need proof that AI never made decisions about money movement, account status, or case closure.
Hard Fences
These are not policy settings. These are architectural constraints enforced by the Arbiter. No bypass path exists.
AI cannot modify /txn/amount, /txn/status, or initiate any transfer operation. The Arbiter will DENY with audit trail.
AI cannot freeze, close, or modify account status. Human operators only, through separate controlled paths.
AI cannot mark alerts as "closed" or "no SAR required." Disposition decisions require human EXECUTE with dual control.
AI can draft SAR narratives in PLAN/EVAL mode. Final submission requires human approval with PoA evidence.
AML Workflow
Transactions ingested as Capsules. Legacy AML rules fire. AI (EVAL mode) scans for patterns across customer history.
Alert CreationInvestigator opens alert. AI summarizes: entities, transactions, risk factors, prior SARs. Read-only—no state changes.
PLAN modeInvestigator prompts AI: "Draft SAR narrative explaining structuring behavior." AI produces draft with proposed fields.
EVALUATE modeValidation checks: narrative references real transactions only, no hallucinated account numbers, amounts match ground truth.
Ground Truth CheckInvestigator commits SAR draft. Manager reviews and approves. Both approvals captured in PoA. Status: SAR_SUBMITTED.
Dual ControlCapabilities
Customer KYC as Capsules with risk scores, document references, consent flags. AI can summarize; AI cannot change risk ratings without human approval.
Every transaction or batch as a governed Capsule. Derived features (velocity, geo anomalies) computed and stored. Full lineage.
Alerts as Capsules linking customers and transactions. AI assists with pattern analysis. Disposition always requires human EXECUTE.
Every SAR has full evidence: which transactions, which AI analysis, who drafted, who approved. Regulatory-ready audit bundle.
EU customer data stays in EU. Singapore data stays in Singapore. Jurisdiction routing enforced by Arbiter—not by policy document.
AML records retained for regulatory windows. Can't be deleted early. Revocation only for corrections, with full lineage preserved.
Regulatory Alignment
| Regulation | Requirement | HARE Mechanism |
|---|---|---|
| BSA/AML | SAR filing, record keeping | Evidence-backed SAR workflow, 7-year retention |
| FATF | Risk-based approach | Risk scoring with evidence trail |
| GDPR | Data sovereignty, consent | Jurisdiction routing, consent enforcement |
| MiFID II | Transaction reporting | Transaction Capsules with full lineage |
| SOX | Internal controls | Segregation of duties, dual control evidence |
Use Cases
AI-assisted alert triage and SAR drafting. Pattern detection across customer history. Human-only disposition decisions.
AI summarizes customer profile changes, flags risk factors. Risk rating changes require human approval with evidence.
AI assists with report preparation. Every data point traceable to source transaction Capsules. Audit-ready from day one.
Contact us to discuss pilot programs and integration with your AML and compliance systems.
fin@hareprotocol.ai
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