9. Regulatory Compliance and Privacy

9.1 Regulatory Dashboard Overview

The SurferMonkey SDK includes a Regulatory Dashboard for institutions to access and manage compliance-related features effectively. The Regulatory Dashboard provides institutions with the ability to:

• Monitor Transactions: Review all activities performed by their users to ensure compliance.
• Oversee User Actions: Gain insight into user activities, helping institutions fulfill their regulatory responsibilities.
• Compliance Reporting: Generate necessary reports for regulatory bodies if a user engages in malicious behavior.

This dashboard provides the tools needed for institutions to ensure their interactions remain compliant with both national and international AML (Anti-Money Laundering) regulations, while maintaining oversight of user activity.

9.2 Privacy Protocol Layers

The SurferMonkey SDK is designed to offer strong privacy guarantees while ensuring compliance. Here are the two primary mechanisms in place:

• Sanction Blacklist at Smart Contract Level:
  The system has a sanction blacklist implemented directly in the smart contract. This blacklist prevents blacklisted addresses from interacting with the protocol, effectively blocking unwanted activity. The design is scalable, allowing for up to hundreds of millions of blacklisted addresses, which ensures scalability and maintains the integrity of the network.

• Accountability Proofs for User Oversight:
  Institutions can generate accountability proofs that enable them to oversee their users' actions. If a user acts maliciously, these proofs give the institution full visibility of that user's actions. This level of accountability allows institutions to enforce appropriate measures, such as reporting violations to regulatory bodies.

By incorporating both a blacklist mechanism and accountability proofs, SurferMonkey is able to strike a balance between privacy and compliance—giving users a private transaction environment while maintaining regulatory oversight.