> ## Documentation Index > Fetch the complete documentation index at: https://developers.circle.com/llms.txt > Use this file to discover all available pages before exploring further. # Rule management Your transaction screening rules are the rules against which your screening events (embedded or address) will be evaluated. They will contain the rule criteria that will trigger the rule and the applicable or suggested actions for each rule if triggered. For testnet, there are a number of default rules in place which you can use to test against (see [Testing guide](/wallets/compliance-engine/tx-screening-testing)). Compliance Engine on both testnet and mainnet is only available for eligible customers. Contact Circle through the [Compliance Engine request form](https://www.circle.com/wallets/compliance-engine/#get-in-touch) to get access. ## Default rules On mainnet, there are also default rules in place as a starting point. However, they may not be sufficient to address your company's compliance obligations or risk appetite. You should consult legal counsel when evaluating [compliance requirements](https://6778953.fs1.hubspotusercontent-na1.net/hubfs/6778953/PDFs/Whitepapers/ComplianceEngine_whitepaper.pdf) as they relate to your unique business model and the jurisdictions in which you operate. Once you have done so, you can set up appropriate configurable rules to address your risks. ## Rule configurations There are two types of rules for [Transaction screening](/wallets/compliance-engine/tx-screening) which can be configured: *Restrictive Rules* and *Alert-only Rules*. A rule consists of the following: 1. **Name:** This is auto generated based on the rule criteria and actions. 2. **Description:** This is an optional text field to provide a summary of what the rule is designed to accomplish. 3. **Actions**: What actions should be applied or suggested when a rule is matched. There are two distinct rule types, *Restrictive* and *Alert-only*, for which the following actions are associated:\ a. **Transaction Decision**: this action allows you to prevent outgoing transactions from being broadcast. It is available as a *restrictive* rule only.\ b. **Wallet Freeze**: this action allows you to freeze the funds in the associated Circle Wallet. It is available as a *restrictive* rule only.\ c. **Generate an Alert**: this action will trigger the generation of an alert in your Alerts Table in the [Console](https://console.circle.com/). This is optional on *restrictive* rules but mandatory on *alert-only* rules. 4. **Rule Criteria**: What combination of risk signals should a rule alert on. There are three unique criteria to be set with each rule:\ a. **Risk Category**: general categorization of the risk that has been flagged for the entity in question.\ b. **Risk Score**: representative value for the level of risk associated with the entity.\ c. **Risk Type**: level of exposure for the risk involved. Is the address directly or indirectly associated with the risk? ## Mandatory rules There are a number of rules in place by default that have minimal configuration options, e.g. the ability to toggle the alert action. These rules are as follows: * **Circle's Sanctions Blocklist.** This rule is in line with the mandatory [Compliance requirements](/wallets/compliance-requirements#ofac-sanctions-compliance-in-terms-of-service) you must adhere to when using Circle Wallets. Wallets and transactions will be restricted if they are detected sending or receiving from any OFAC-sanctioned address. * **Your blocklist.** This rule relates to the [Watchlists](/wallets/compliance-engine/tx-screening-rule-management#watchlists) functionality. * **Frozen.** This rule is used to enforce the wallet freeze, which is applied to wallets by other transaction screening rules, or via the developer console. * **Your allowlist.** This rule relates to the [Watchlists](/wallets/compliance-engine/tx-screening-rule-management#watchlists) functionality. ## Configurable rule criteria combinations The table below outlines all possible criteria combinations that can be used to create/configure rules. | Symbol | Meaning | | ------ | -------------------------------------------------------------------------------------------- | | ✅ | Default Combination in place on Mainnet. Configurable. | | 🟡 | Possible Combination that can be utilized in a configurable rule. | | ❌ | Unsupported combination, a screening cannot result in this possible combination of criteria. |
| Risk Category | Risk Type | Risk Score | | | | | ------------------- | ------------ | ---------- | -------- | ---------- | ------- | | | | **Severe** | **High** | **Medium** | **Low** | | Sanctions | Ownership | ✅ | ❌ | ❌ | ❌ | | Sanctions | Counterparty | 🟡 | ❌ | ❌ | ❌ | | Sanctions | Indirect | ❌ | 🟡 | ❌ | ❌ | | Terrorist Financing | Ownership | ✅ | 🟡 | ❌ | ❌ | | Terrorist Financing | Counterparty | 🟡 | 🟡 | ❌ | ❌ | | Terrorist Financing | Indirect | ❌ | 🟡 | 🟡 | ❌ | | CSAM | Ownership | ✅ | ❌ | ❌ | ❌ | | CSAM | Counterparty | 🟡 | ❌ | ❌ | ❌ | | CSAM | Indirect | ❌ | 🟡 | ❌ | ❌ | | PEP | Ownership | ❌ | ❌ | 🟡 | ❌ | | PEP | Counterparty | ❌ | ❌ | 🟡 | ❌ | | PEP | Indirect | ❌ | ❌ | ❌ | 🟡 | | Gambling | Ownership | ❌ | ❌ | ❌ | ❌ | | Gambling | Counterparty | ❌ | ❌ | 🟡 | ❌ | | Gambling | Indirect | ❌ | ❌ | ❌ | 🟡 | | Illicit Behavior | Ownership | 🟡 | 🟡 | 🟡 | ❌ | | Illicit Behavior | Counterparty | 🟡 | 🟡 | 🟡 | ❌ | | Illicit Behavior | Indirect | ❌ | 🟡 | 🟡 | 🟡 | | High Risk Industry | Ownership | ❌ | ❌ | 🟡 | 🟡 | | High Risk Industry | Counterparty | ❌ | ❌ | 🟡 | 🟡 | | High Risk Industry | Indirect | ❌ | ❌ | ❌ | 🟡 | | Other | Ownership | ❌ | 🟡 | ❌ | 🟡 | | Other | Counterparty | ❌ | 🟡 | 🟡 | 🟡 | | Other | Indirect | ❌ | ❌ | 🟡 | 🟡 | ## Rule setup To create or edit a rule, follow these steps: 1. **Access Settings page**: Using your credentials, log in to the Circle [Console](https://console.circle.com/). From there, navigate to the **Compliance Engine > Settings** section, which allows you to manage your screening rules conveniently. 2. **Choose to create or edit a rule**: Select the appropriate rule type *Configurable **restrictive** rules* or *Configurable **alert-only** rules*. To edit an existing rule, select the rule in question and click the `Edit` button. To add a new rule, select `Add Rule`. 3. **Configure the rule**: Set the desired rule (*description*, *actions*, and *criteria*) based on your requirements. Refer to the above [possible configurations](/wallets/compliance-engine/tx-screening-rule-management#configurable-rule-criteria-combinations) for clarity on the available options. 4. **Update or create the rule**: After applying the necessary configurations, select either: * `Save` to modify an existing rule; or * `Create Rule` button (top-right of page) to create a new rule.