A knowledge based system, program, and method for regulatory knowledge representation, utilization, and maintenance is presented. The system, program, and method support advanced reasoning concerning entities and events in order to determine their adherence to regulations and policies, with the specific ability to identify violations of regulations that govern industries such as the financial services industry. Advanced approaches and methods that allow for efficient representation of regulatory knowledge, its utilization and maintenance are specifically defined. Events and actions like, for instance, financial transactions or regulatory compliance violations can be evaluated on an automated basis by applying various approaches and methods using the regulatory knowledge system.