MCP-IMPLEMENTATION.md

MCP-Compliant Implementation Summary

Global Compliance Audit MCP Server - Enhanced Documentation

Overview

This implementation provides MCP (Model Context Protocol) compliant enterprise compliance operations with comprehensive machine-readable documentation. All DTOs and service methods are fully documented to serve as schema definitions for external AI agents.

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🎯 MCP Tools Implemented

1. checkRegulatoryJurisdiction

Purpose: Validates regulatory compliance for business actions across jurisdictions.

When AI Agents Call This:

• Before recommending data processing activities
• To validate cross-border data transfers
• When architecting systems handling regulated data
• To identify required legal agreements (DPAs, BCRs)

Input Schema: RegulatoryLookupInputDto

• jurisdiction: ISO-based region code (e.g., "EU", "US-CA", "CN")
• regulation_type: Framework identifier (e.g., "GDPR", "HIPAA", "SOX")
• action_description: Natural language description of the proposed action

Output Schema: RegulatoryLookupOutputDto

• is_compliant: Boolean compliance determination
• required_mitigations: Ordered array of compliance actions needed

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2. queryAuditTrail

Purpose: Retrieves historical audit logs for forensic analysis and compliance reporting.

When AI Agents Call This:

• To investigate security incidents
• To generate compliance reports (SOC2, ISO 27001)
• To analyze user behavior patterns
• To answer "who accessed what when" questions
• To verify logging and retention compliance

Input Schema: AuditQueryInputDto

• transaction_id (optional): UUID/identifier for specific transaction filtering
• start_date: ISO 8601 datetime (YYYY-MM-DDTHH:mm:ss.sssZ)
• end_date: ISO 8601 datetime (YYYY-MM-DDTHH:mm:ss.sssZ)

Output Schema: AuditQueryOutputDto

• log_entries: Array of AuditLogEntry objects
  • timestamp: ISO 8601 activity timestamp
  • user_id: Actor identifier
  • activity_type: Standardized activity classification (DATA_ACCESS, EXPORT, DELETE, etc.)
• total_records: Integer count of returned entries

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3. calculateRiskScore

Purpose: Performs quantitative risk assessment with actionable mitigation recommendations.

When AI Agents Call This:

• To assess risk before recommending system changes
• To prioritize security investments
• To determine required governance controls
• To evaluate third-party integrations
• To generate risk assessments for compliance frameworks

Input Schema: RiskScoreInputDto

• process_name: Human-readable process identifier
• data_sensitivity_level: Integer 1-5 scale
  • 1 = Public
  • 2 = Internal
  • 3 = Confidential
  • 4 = Restricted
  • 5 = Critical (PII, PHI, financial)
• external_api_dependencies: Integer count of external integrations

Output Schema: RiskScoreOutputDto

• risk_score: Integer 0-100 (quantitative risk)
• risk_rating: Enum ("Low" | "Medium" | "High")
  • Low: 0-30
  • Medium: 31-60
  • High: 61-100
• mitigation_recommendations: Ordered array of specific actions

Risk Algorithm:

risk_score = (data_sensitivity_level × 15) + (external_api_dependencies × 5)
capped at 100

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📂 Project Structure

src/
├── main.ts                          # Enhanced with logger and env config
├── app.module.ts                    # ConfigModule integration
├── compliance/
│   ├── compliance.module.ts         # ComplianceModule definition
│   ├── compliance.service.ts        # MCP-compliant service methods
│   ├── compliance.controller.ts     # REST API endpoints
│   └── dto/
│       ├── regulatory-lookup-input.dto.ts
│       ├── regulatory-lookup-output.dto.ts
│       ├── audit-query-input.dto.ts
│       ├── audit-query-output.dto.ts
│       ├── risk-score-input.dto.ts
│       └── risk-score-output.dto.ts
.env                                 # Environment configuration
.env.example                         # Example configuration template

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🔧 Environment Configuration

File: .env

# Application Configuration
PORT=3000
NODE_ENV=development

# Application Metadata
APP_NAME=Global Compliance Audit MCP Server
APP_VERSION=1.0.0

# API Configuration
API_PREFIX=api/v1

# Logging
LOG_LEVEL=verbose

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🚀 REST API Endpoints

Base URL: http://localhost:3000/api/v1/mcp/compliance

Endpoint 1: Regulatory Lookup

POST /api/v1/mcp/compliance/lookup
Content-Type: application/json

{
  "jurisdiction": "EU",
  "regulation_type": "GDPR",
  "action_description": "Transfer customer PII to US cloud provider"
}

Endpoint 2: Audit Query

POST /api/v1/mcp/compliance/audit/query
Content-Type: application/json

{
  "start_date": "2025-01-01T00:00:00.000Z",
  "end_date": "2025-01-31T23:59:59.999Z",
  "transaction_id": "txn-12345"
}

Endpoint 3: Risk Calculation

POST /api/v1/mcp/compliance/risk/calculate
Content-Type: application/json

{
  "process_name": "Payment Processing System",
  "data_sensitivity_level": 5,
  "external_api_dependencies": 3
}

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📋 Documentation Standards

MCP Compliance Requirements ✅

All DTOs and service methods include:

1. Method/Class Description

   • Clear statement of what the tool does
   • Why an AI agent would invoke it
   • Real-world use cases

2. Parameter Descriptions

   • @param with full type information
   • Purpose and semantic meaning
   • Accepted formats (ISO 8601, patterns, enums)
   • Constraints (min/max, required/optional)
   • Examples for each field

3. Return Descriptions

   • @returns with structured output definition
   • Field-by-field breakdown
   • Data type specifications
   • Semantic interpretation guidelines

4. Examples

   • Multiple realistic examples
   • Success and error scenarios
   • Edge cases covered

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🧪 Testing the Server

Start the Server

npm run start:dev

Expected Output:

[Nest] LOG [Bootstrap] 🚀 Global Compliance Audit MCP Server is running
[Nest] LOG [Bootstrap] 🌍 Environment: development
[Nest] LOG [Bootstrap] 📡 Server listening on: http://localhost:3000
[Nest] LOG [Bootstrap] 📋 Compliance API Base: http://localhost:3000/api/v1/mcp/compliance
[Nest] LOG [Bootstrap] ✅ Health check: http://localhost:3000

Test with PowerShell

# Test 1: Regulatory Lookup
Invoke-RestMethod -Uri "http://localhost:3000/api/v1/mcp/compliance/lookup" `
  -Method Post `
  -Body '{"jurisdiction":"EU","regulation_type":"GDPR","action_description":"Transfer customer data"}' `
  -ContentType "application/json"

# Test 2: Audit Query
Invoke-RestMethod -Uri "http://localhost:3000/api/v1/mcp/compliance/audit/query" `
  -Method Post `
  -Body '{"start_date":"2025-01-01T00:00:00Z","end_date":"2025-12-31T23:59:59Z"}' `
  -ContentType "application/json"

# Test 3: Risk Score
Invoke-RestMethod -Uri "http://localhost:3000/api/v1/mcp/compliance/risk/calculate" `
  -Method Post `
  -Body '{"process_name":"Payment System","data_sensitivity_level":5,"external_api_dependencies":3}' `
  -ContentType "application/json"

Automated Test Script

.\test-endpoints.ps1

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🎯 Next Steps for MCP Integration

Phase 2: MCP Server Implementation

1. Install MCP SDK

   npm install @modelcontextprotocol/sdk
   

2. Create MCP Tool Handlers

   • Map each service method to an MCP tool definition
   • Use JSDoc documentation as tool schema
   • Implement stdio/SSE transport layer

3. Tool Registration

   server.setRequestHandler(ListToolsRequestSchema, async () => ({
     tools: [
       {
         name: 'checkRegulatoryJurisdiction',
         description: '...', // From JSDoc
         inputSchema: {
           /* From DTOs */
         },
       },
       // ... other tools
     ],
   }));
   

4. Testing with MCP Inspector

   npx @modelcontextprotocol/inspector node dist/mcp-server.js
   

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✅ Implementation Checklist

• Create all DTO files with strict TypeScript types
• Add comprehensive JSDoc comments to all DTOs
• Implement ComplianceService with three methods
• Add MCP-compliant documentation to service methods
• Create ComplianceController with REST endpoints
• Document controller endpoints with examples
• Configure environment variables with .env
• Add enhanced logging with port display
• Format all code with Prettier
• Test REST API endpoints
• Implement MCP tool handlers (Phase 2)
• Add input validation decorators (class-validator)
• Integrate with real compliance databases
• Add authentication/authorization
• Deploy as MCP server

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📖 Key Features

✅ Machine-Readable Schema - All JSDoc comments serve as MCP tool definitions
✅ Strict TypeScript Types - Full type safety throughout
✅ REST API for Testing - Easy validation during development
✅ Environment Configuration - Flexible deployment options
✅ Enhanced Logging - Clear visibility into server state
✅ Mock Data Implementation - Validates function signatures
✅ Production-Ready Structure - Easy to integrate real data sources

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📚 Documentation References

• DTOs: All located in src/compliance/dto/ with comprehensive field documentation
• Service: src/compliance/compliance.service.ts with detailed method documentation
• Controller: src/compliance/compliance.controller.ts with HTTP endpoint documentation
• Testing Guide: TESTING.md with complete testing instructions

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Status: ✅ Ready for MCP Integration (Phase 2)