InvoiceX-Ray — TBML Detection MCP Server

Trade-Based Money Laundering (TBML) Detection Agent for Indian AD-Bank Trade Finance under FEMA 2026
Built with Nitrostack SDK · Model Context Protocol (MCP) · TypeScript · PostgreSQL / Supabase

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🌟 Overview & Problem Statement

InvoiceX-Ray is a specialized Model Context Protocol (MCP) server that empowers AI agents and compliance officers to detect Trade-Based Money Laundering (TBML) in Letter of Credit (LC) and Export-Import finance.

What It Does

Unlike simple document OCR or basic text summarizers, InvoiceX-Ray is a multi-layered cross-referencing engine. It identifies the structural manipulation gap in trade transactions — over/under-invoicing, phantom shipments, duplicate billing, and illegal offshore capital flight — by cross-analyzing declared invoice valuations against independent commodity benchmarks, customs records, and regulatory timelines simultaneously.

The FEMA 2026 Regulatory Environment

Under India's Foreign Exchange Management (Export and Import) Regulations, 2026 (effective October 1, 2026):

• Tightened Realization Windows: Strict timelines for export proceed realizations monitored via RBI's EDPMS/IDPMS networks.
• Severe Financial Exposure: Section 13 mandates penalties up to 300% of transaction value for unauthorized delays or valuation manipulation.
• Bank Liability: Authorized Dealer (AD) Category-I banks carry direct regulatory liability for every unflagged trade transaction.

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🚀 Key Features & Innovations

1. Counterfactual Valuation Engine Instead of presenting abstract percentages, InvoiceX-Ray generates a concrete Counterfactual View:

   "This shipment declares $1,475,000 for 500 oz of Gold Bullion ($2,950/oz). At the current market spot benchmark of $2,200/oz, the shipment should cost $1,100,000. The $375,000 gap is the suspected illicit capital flight transfer."

2. Dynamic AI Commodity Benchmarking

   • World Bank API Integration: Live macroeconomic inflation scaling (FP.CPI.TOTL.ZG) dynamically adjusts commodity benchmark baselines.
   • On-the-Fly Benchmark Generation: If a commodity benchmark is missing from the database, the server queries Groq AI (llama-3.3-70b-versatile) to calculate realistic spot prices and 90-day distribution statistics, automatically saving and caching them to PostgreSQL.

3. Multi-Verification Toolset (11 MCP Tools)

   • DGFT IEC Validation: Verifies Importer-Exporter Code caution-listing status via registrar records.
   • ICEGATE Customs Verification: Detects weight discrepancies between invoice declarations and port container weights.
   • OpenSanctions PEP/Sanction Check: Live API screening against global watchlists (OFAC, UN, EU).
   • Maritime Route Feasibility: Evaluates geospatial routing anomalies (e.g. vessel shipments to landlocked destinations like Zurich).
   • Double-Financing Detection: Cross-checks shipping bills across different AD Bank IFSC codes to prevent duplicate loan filings.

4. Automated Regulatory Document Generation

   • FIU-IND Suspicious Transaction Report (STR): Full narrative drafting powered by Groq LLM.
   • RBI Form ETX: Automated drafting of extension/write-off applications for overdue bills.
   • HTML Audit Reports: Print-ready, executive-level counterfactual valuation reports.

5. Dual MCP Transport

   • Standard stdio transport for direct CLI/IDE integration.
   • Express sse (Server-Sent Events) transport for web dashboard connections.

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🏗 System Architecture

┌──────────────────────────────────────────────────────────┐
│          Trade Finance Dashboard (Next.js + Recharts)    │
│          Counterfactual View: Declared vs Benchmark      │
│                        [Member 4]                        │
└──────────────────────┬───────────────────────────────────┘
                       │ MCP Client (Stdio / SSE)
                       ▼
┌──────────────────────────────────────────────────────────┐
│              Nitrostack MCP Server  [Member 1]           │
│                                                          │
│  RESOURCES                TOOLS              PROMPTS     │
│  ┌─────────────────┐  ┌─────────────────┐  ┌──────────┐ │
│  │ Invoice Feed    │  │ Price Deviation │  │ STR Gen  │ │
│  │ (txns + shipping│  │ (z-score, IQR,  │  │ Template │ │
│  │  docs)          │  │  counterfactual)│  │          │ │
│  │                 │  │                 │  │ Red Flag │ │
│  │ Benchmark Feed  │  │ Timeline Risk   │  │ Summary  │ │
│  │ (spot + 90d     │  │ (FEMA 300%      │  └──────────┘ │
│  │  stats + IQR)   │  │  penalty)       │                │
│  │                 │  │                 │                │
│  │ EDPMS Status    │  │ Counterparty    │                │
│  │ (realization    │  │ Pattern Scanner │                │
│  │  + FETERS)      │  │                 │                │
│  └─────────────────┘  │ Sanctions, DGFT,│                │
│                       │ ICEGATE, FormETX│                │
│                       └─────────────────┘                │
│                   DbDataProvider Interface                │
└─────────────┬──────────────────────┬─────────────────────┘
              │                      │
              ▼                      ▼
┌─────────────────────┐  ┌─────────────────────────────────┐
│   Groq / World Bank │  │   PostgreSQL / Supabase         │
│  (AI Reasoning &    │  │  (Trade txns, HS benchmarks,    │
│   Inflation Data)   │  │   EDPMS records)                │
│    [Member 3]       │  │    [Member 2]                   │
└─────────────────────┘  └─────────────────────────────────┘

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🛠 MCP Primitives Reference

Resources (Data Streams)

URI	Description
trade-invoice-feed://all	Returns all LC/Export trade transaction records with shipping documentation
trade-invoice-feed://{invoice_id}	Templated resource to retrieve individual transaction details
commodity-benchmark://all	Global commodity market price reference table by HS Code
edpms-realization-status://all	RBI EDPMS realization records with countdown timelines and realization status

Tools (Detection Logic & Actions)

Tool Name	Input Arguments	Description
list_all_transactions	{}	Retrieves all stored trade transactions
check_price_deviation	invoice_id	Cross-references unit price against benchmark z-score & IQR; returns counterfactual gap
check_timeline_risk	exporter_id	Checks EDPMS realization deadlines; calculates 300% FEMA penalty exposure
check_counterparty_pattern	entity_id	Scans for identical value repeats, rapid succession, and round-trip invoicing
verify_dgft_iec	iec, pan	Verifies DGFT registration and caution-listing status
verify_icegate_customs	shipping_bill_no, port_of_loading, declared_weight	Cross-checks declared cargo weight against customs records
check_sanctions	entity_name, country_code	Screens entities against OpenSanctions PEP/OFAC watchlists
check_routing_risk	port_of_loading, port_of_discharge	Evaluates maritime shipping feasibility and landlocked port risks
check_double_financing	shipping_bill_no, ad_bank_code	Detects duplicate shipping bill filings across AD banks
generate_counterfactual_report	invoice_id	Generates a print-ready HTML audit report
generate_rbi_filing	invoice_id	Generates an official RBI Form ETX draft for overdue bills
draft_str	flags_list, transaction_details, counterfactual	Synthesizes accumulated flags into an FIU-IND compliant STR narrative

Prompts (LLM Templates)

Prompt	Description
str_generation_template	AML Compliance Officer prompt for formal STR drafting under FEMA 2026
red_flag_summary_template	Executive summary prompt for relationship managers and credit committees

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👥 Team Responsibilities & Handoff

Role	Member	Responsibilities	Artifact Link
MCP Architect	Member 1	Nitrostack setup, MCP schemas, detection tools, transport routing	[walkthrough.md](file:///home/devang/.gemini/antigravity/brain/125af709-ec63-4b47-b71a-92a5a3c073b2/walkthrough.md)
Data Synthesizer	Member 2	Supabase DDL schema, PostgreSQL provider, synthetic data seeder	[member2_handoff.md](file:///home/devang/.gemini/antigravity/brain/125af709-ec63-4b47-b71a-92a5a3c073b2/member2_handoff.md)
AI Engineer	Member 3	Groq/Claude API integration, prompt templates, STR narrative generation	[mcp_integration_guide.md](file:///home/devang/.gemini/antigravity/brain/125af709-ec63-4b47-b71a-92a5a3c073b2/mcp_integration_guide.md)
UI/UX Specialist	Member 4	React/Next.js dashboard, Recharts counterfactual view, STR editor	[member4_handoff.md](file:///home/devang/.gemini/antigravity/brain/125af709-ec63-4b47-b71a-92a5a3c073b2/member4_handoff.md)

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💻 Quick Start & Installation

Prerequisites

• Node.js 18+
• PostgreSQL or Supabase Database

Setup Instructions

1. Clone & Install Dependencies:

   git clone https://github.com/DevNarayanU/MCP-Nitro.git
   cd nitrostack
   npm install
   

2. Configure Environment Variables: Create a .env file in the root directory:

   # Server Configuration
   SERVER_NAME=invoicex-ray
   SERVER_VERSION=1.0.0
   MCP_TRANSPORT=stdio # "stdio" or "sse"
   PORT=3000
   
   # Database Connection
   DATABASE_URL="postgresql://postgres:[PASSWORD]@db.[PROJECT-ID].supabase.co:5432/postgres"
   
   # AI & External APIs (Optional for live LLM features)
   GROQ_API_KEY="your-groq-api-key"
   GROQ_MODEL="llama-3.3-70b-versatile"
   OPENSANCTIONS_API_KEY="your-opensanctions-api-key"
   
   # Thresholds
   PRICE_DEVIATION_THRESHOLD=20
   TIMELINE_RISK_DAYS=15
   

3. Database Migration & Seeding: Run the seeding script to create PostgreSQL tables and populate clean + planted TBML transactions:

   npm run seed
   

4. Run Server:

   # Development mode with hot-reload
   npm run dev
   
   # Production build & start
   npm run build
   npm run start:prod
   

MCP Client Configuration (stdio)

Add this configuration to your Claude Desktop or MCP Client settings (mcpServers):

{
  "mcpServers": {
    "invoicex-ray": {
      "command": "node",
      "args": ["/path/to/nitrostack/dist/index.js"]
    }
  }
}

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📜 Regulatory Reference Framework

• FEMA 2026: Foreign Exchange Management (Export and Import Regulations), 2026 (Section 13 Penalties).
• RBI Master Direction on KYC/AML: Master Direction - Know Your Customer (KYC) Direction, 2016 (updated 2026).
• FIU-IND Reporting Format: Financial Intelligence Unit - India Suspicious Transaction Report guidelines.
• FATF TBML Typologies: Financial Action Task Force Guidance on Trade-Based Money Laundering.

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📄 License

Distributed under the MIT License.