diff --git a/src/ONYXKEYS.ts b/src/ONYXKEYS.ts
index a5a969adb833..414570cafe5c 100755
--- a/src/ONYXKEYS.ts
+++ b/src/ONYXKEYS.ts
@@ -261,6 +261,7 @@ const ONYXKEYS = {
         REPORT_USER_IS_LEAVING_ROOM: 'reportUserIsLeavingRoom_',
         SECURITY_GROUP: 'securityGroup_',
         TRANSACTION: 'transactions_',
+        TRANSACTION_VIOLATIONS: 'transactionViolations_',
         SPLIT_TRANSACTION_DRAFT: 'splitTransactionDraft_',
         PRIVATE_NOTES_DRAFT: 'privateNotesDraft_',
         NEXT_STEP: 'reportNextStep_',
diff --git a/src/libs/Violations/ViolationsUtils.ts b/src/libs/Violations/ViolationsUtils.ts
new file mode 100644
index 000000000000..28f5aedf10b9
--- /dev/null
+++ b/src/libs/Violations/ViolationsUtils.ts
@@ -0,0 +1,69 @@
+import reject from 'lodash/reject';
+import Onyx from 'react-native-onyx';
+import ONYXKEYS from '@src/ONYXKEYS';
+import {PolicyCategories, PolicyTags, Transaction, TransactionViolation} from '@src/types/onyx';
+import possibleViolationsByField, {ViolationField} from './possibleViolationsByField';
+
+const ViolationsUtils = {
+    getViolationForField(transactionViolations: TransactionViolation[], field: ViolationField, translate: (key: string) => string): string[] {
+        return transactionViolations.filter((violation) => possibleViolationsByField[field]?.includes(violation.name)).map((violation) => translate(violation.name));
+    },
+
+    getViolationsOnyxData(
+        /** The transaction to check for policy violations. */
+        transaction: Transaction,
+        /** An array of existing transaction violations. */
+        transactionViolations: TransactionViolation[],
+        /** Indicates if the policy requires tags. */
+        policyRequiresTags: boolean,
+        /** Collection of policy tags and their enabled states. */
+        policyTags: PolicyTags,
+        /** Indicates if the policy requires categories. */
+        policyRequiresCategories: boolean,
+        /** Collection of policy categories and their enabled states. */
+        policyCategories: PolicyCategories,
+    ): {
+        onyxMethod: string;
+        key: string;
+        value: TransactionViolation[];
+    } {
+        let newTransactionViolations = [...transactionViolations];
+
+        if (policyRequiresCategories) {
+            const categoryViolationExists = transactionViolations.some((violation) => violation.name === 'categoryOutOfPolicy');
+            const categoryIsInPolicy = policyCategories[transaction.category]?.enabled;
+
+            // Add 'categoryOutOfPolicy' violation if category is not in policy
+            if (!categoryViolationExists && transaction.category && !categoryIsInPolicy) {
+                newTransactionViolations.push({name: 'categoryOutOfPolicy', type: 'violation', userMessage: ''});
+            }
+
+            // Remove 'missingCategory' violation if category is valid according to policy
+            if (categoryIsInPolicy) {
+                newTransactionViolations = reject(newTransactionViolations, {name: 'missingCategory'});
+            }
+        }
+
+        if (policyRequiresTags) {
+            // Add 'tagOutOfPolicy' violation if tag is not in policy
+            const tagViolationExists = transactionViolations.some((violation) => violation.name === 'tagOutOfPolicy');
+            const tagInPolicy = policyTags[transaction.tag]?.enabled;
+            if (!tagViolationExists && transaction.tag && !tagInPolicy) {
+                newTransactionViolations.push({name: 'tagOutOfPolicy', type: 'violation', userMessage: ''});
+            }
+
+            // Remove 'missingTag' violation if tag is valid according to policy
+            if (tagInPolicy) {
+                newTransactionViolations = reject(newTransactionViolations, {name: 'missingTag'});
+            }
+        }
+
+        return {
+            onyxMethod: Onyx.METHOD.SET,
+            key: `${ONYXKEYS.COLLECTION.TRANSACTION_VIOLATIONS}${transaction.transactionID}`,
+            value: newTransactionViolations,
+        };
+    },
+};
+
+export default ViolationsUtils;
diff --git a/src/libs/Violations/index.ts b/src/libs/Violations/index.ts
new file mode 100644
index 000000000000..3ee08a4000d0
--- /dev/null
+++ b/src/libs/Violations/index.ts
@@ -0,0 +1,3 @@
+import * as ViolationsUtils from './ViolationsUtils';
+
+export default ViolationsUtils;
diff --git a/src/libs/Violations/possibleViolationsByField.ts b/src/libs/Violations/possibleViolationsByField.ts
new file mode 100644
index 000000000000..4dfc1c22b054
--- /dev/null
+++ b/src/libs/Violations/possibleViolationsByField.ts
@@ -0,0 +1,41 @@
+import invertBy from 'lodash/invertBy';
+import {ViolationName} from '@src/types/onyx';
+
+/**
+ * Map from Violation Names to the field where that violation can occur
+ */
+const violationFields: Record<ViolationName, ViolationField> = {
+    perDayLimit: 'amount',
+    maxAge: 'date',
+    overLimit: 'amount',
+    overLimitAttendee: 'amount',
+    overCategoryLimit: 'amount',
+    receiptRequired: 'receipt',
+    missingCategory: 'category',
+    categoryOutOfPolicy: 'category',
+    missingTag: 'tag',
+    tagOutOfPolicy: 'tag',
+    missingComment: 'comment',
+    taxRequired: 'tax',
+    taxOutOfPolicy: 'tax',
+    billableExpense: 'billable',
+};
+
+/**
+ * Names of Fields where violations can occur
+ */
+type ViolationField = 'merchant' | 'amount' | 'category' | 'date' | 'tag' | 'comment' | 'billable' | 'receipt' | 'tax';
+
+/**
+ * Map from field name to array of violation types that can occur on that field.
+ * @example
+ * {
+ *   // ...
+ *   category: ['missingCategory', 'categoryOutOfPolicy']
+ *   // ...
+ * }
+ */
+const possibleViolationsByField = invertBy(violationFields, (value) => value) as Record<ViolationField, ViolationName[]>;
+
+export default possibleViolationsByField;
+export type {ViolationField};
diff --git a/src/types/onyx/PolicyCategory.ts b/src/types/onyx/PolicyCategory.ts
index adaf16e1acec..b6dfb7bbab9a 100644
--- a/src/types/onyx/PolicyCategory.ts
+++ b/src/types/onyx/PolicyCategory.ts
@@ -19,4 +19,6 @@ type PolicyCategory = {
     origin: string;
 };
 
+type PolicyCategories = Record<string, PolicyCategory>;
 export default PolicyCategory;
+export type {PolicyCategories};
diff --git a/src/types/onyx/TransactionViolation.ts b/src/types/onyx/TransactionViolation.ts
new file mode 100644
index 000000000000..eb0e67cc1e14
--- /dev/null
+++ b/src/types/onyx/TransactionViolation.ts
@@ -0,0 +1,34 @@
+/**
+ * @module TransactionViolation
+ * @description Transaction Violation
+ */
+
+/**
+ * Names of the various Transaction Violation types
+ */
+type ViolationName =
+    | 'perDayLimit'
+    | 'maxAge'
+    | 'overLimit'
+    | 'overLimitAttendee'
+    | 'overCategoryLimit'
+    | 'receiptRequired'
+    | 'missingCategory'
+    | 'categoryOutOfPolicy'
+    | 'missingTag'
+    | 'tagOutOfPolicy'
+    | 'missingComment'
+    | 'taxRequired'
+    | 'taxOutOfPolicy'
+    | 'billableExpense';
+
+type ViolationType = string;
+
+type TransactionViolation = {
+    type: ViolationType;
+    name: ViolationName;
+    userMessage: string;
+    data?: Record<string, string>;
+};
+
+export type {TransactionViolation, ViolationName, ViolationType};
diff --git a/src/types/onyx/index.ts b/src/types/onyx/index.ts
index 87cf24d6dec7..adeba62b08c6 100644
--- a/src/types/onyx/index.ts
+++ b/src/types/onyx/index.ts
@@ -21,7 +21,7 @@ import PersonalBankAccount from './PersonalBankAccount';
 import PersonalDetails from './PersonalDetails';
 import PlaidData from './PlaidData';
 import Policy from './Policy';
-import PolicyCategory from './PolicyCategory';
+import PolicyCategory, {PolicyCategories} from './PolicyCategory';
 import PolicyMember, {PolicyMembers} from './PolicyMember';
 import PolicyTag, {PolicyTags} from './PolicyTag';
 import PrivatePersonalDetails from './PrivatePersonalDetails';
@@ -42,6 +42,7 @@ import SecurityGroup from './SecurityGroup';
 import Session from './Session';
 import Task from './Task';
 import Transaction from './Transaction';
+import {TransactionViolation, ViolationName, ViolationType} from './TransactionViolation';
 import User from './User';
 import UserWallet from './UserWallet';
 import WalletAdditionalDetails from './WalletAdditionalDetails';
@@ -78,6 +79,7 @@ export type {
     PlaidData,
     Policy,
     PolicyCategory,
+    PolicyCategories,
     PolicyMember,
     PolicyMembers,
     PolicyTag,
@@ -101,8 +103,11 @@ export type {
     Session,
     Task,
     Transaction,
+    TransactionViolation,
     User,
     UserWallet,
+    ViolationName,
+    ViolationType,
     WalletAdditionalDetails,
     WalletOnfido,
     WalletStatement,