# 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.

---

## 🎯 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

---

### 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

---

### 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
```

---

## 📂 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
```

---

## 🔧 Environment Configuration

**File:** `.env`

```ini
# 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
```

---

## 🚀 REST API Endpoints

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

### Endpoint 1: Regulatory Lookup

```http
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

```http
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

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

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

---

## 📋 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

---

## 🧪 Testing the Server

### Start the Server

```powershell
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

```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

```powershell
.\test-endpoints.ps1
```

---

## 🎯 Next Steps for MCP Integration

### Phase 2: MCP Server Implementation

1. **Install MCP SDK**

   ```bash
   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**

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

4. **Testing with MCP Inspector**
   ```bash
   npx @modelcontextprotocol/inspector node dist/mcp-server.js
   ```

---

## ✅ Implementation Checklist

- [x] Create all DTO files with strict TypeScript types
- [x] Add comprehensive JSDoc comments to all DTOs
- [x] Implement ComplianceService with three methods
- [x] Add MCP-compliant documentation to service methods
- [x] Create ComplianceController with REST endpoints
- [x] Document controller endpoints with examples
- [x] Configure environment variables with .env
- [x] Add enhanced logging with port display
- [x] Format all code with Prettier
- [x] 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

---

## 📖 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

---

## 📚 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

---

**Status:** ✅ Ready for MCP Integration (Phase 2)