- Project Mandala addresses the significant challenges in maintaining compliance with disparate regulatory and policy frameworks across jurisdictions.
- Project Mandala successfully demonstrates the automation of compliance procedures for cross-border financial transactions.
- Project Mandala is a collaboration between the BIS Innovation Hub, the Reserve Bank of Australia, the Bank of Korea, Bank Negara Malaysia and the Monetary Authority of Singapore.
The Bank for International Settlements (BIS) and its central bank partners have demonstrated with Project Mandala that regulatory compliance can be embedded in cross-border transaction protocols.
This experimental project is a collaboration between the BIS Innovation Hub Singapore Centre, the Reserve Bank of Australia, the Bank of Korea, Bank Negara Malaysia and the Monetary Authority of Singapore.
The project, which has now reached proof of concept stage, aligns with the G20 priority actions for enhancing cross-border payments, as it has the potential to reduce costs and increase transaction speed, while preserving regulatory compliance.
Regulatory frameworks pertaining to cross-border transactions are essential to the safe and secure operation of the global financial system, but complying with disparate jurisdictional regimes presents challenges that have contributed to increased costs and affected the speed of transactions. This current project aims to address key challenges identified during Project Dunbar, which developed an experimental multiple central bank digital currency (mCBDC) platform.
“Mandala is pioneering the compliance-by-design approach to improve cross-border payments without compromising privacy or the integrity of regulatory checks,” said Maha El Dimachki, head of the BIS Innovation Hub Singapore Centre, in a statement.
Project Mandala aims to increase the speed and efficiency of cross-border transactions by automating compliance procedures, enhancing transparency of country-specific policies and providing real-time reporting and monitoring for regulators and supervisors.