The Bank for International Settlements (BIS) made progress in automating compliance for cross-border transactions through Project Mandala.
The BIS officials updated the page for Project Mandala, which is exploring automated compliance for cross-border transactions. According to the update, the project moved into the proof-of-concept phase.
Project Mandala is a joint initiative between the BIS and a number of central banks and is part of the G20 program to improve cross-border payments. Project Mandala participants include the Monetary Authority of Singapore (MAS), the Reserve Bank of Australia (RBA), the Bank of Korea (BOK), the Central Bank of Malaysia (BNM), the BIS Innovation Hub Centre of Singapore, and several commercial financial institutions.
Project Mandala participants demonstrated through system testing that regulatory compliance can be built into a P2P protocol for processing cross-border transactions. The system automatically transmits the necessary data to generate proof of compliance and manage any other information required for compliance checks. The transfer of information is done privately using zero-knowledge proof ( ZKP ) technology, allowing transaction participants to maintain a high level of confidentiality.
Project Mandala was on the Bank for International Settlements’ list of key projects for 2024. Its aim is to focus on tokenization, central bank digital currencies (CBDC), cybersecurity, and sustainable finance.
