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BIS and central bank partners to explore protocols for embedding policy and regulatory compliance in cross-border transactions

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BIS and central bank partners to explore protocols for embedding policy and regulatory compliance in cross-border transactions

Project Mandala looks to automate compliance procedures, provide real-time transaction monitoring and increase transparency and visibility around country-specific policies.

The project explores the feasibility of encoding policy and regulatory requirements into a common protocol.

It is a joint collaboration between BIS Innovation Hub (BISIH) Singapore Centre, Reserve Bank of Australia (RBA), Bank of Korea (BOK), Bank Negara Malaysia (BNM), and Monetary Authority of Singapore (MAS), with financial institutions.

...it aims to address key challenges identified during Project Dunbar , which developed an experimental multiple central bank digital currency (mCBDC) platform.

The envisioned compliance-by-design architecture could enable a more efficient cross-border transfer of any digital assets including CBDCs and tokenised deposits. It could also serve as the foundational compliance layer for legacy and nascent wholesale or retail payment systems.

The measures could include quantifiable and configurable foreign exchange rules, as well as anti-money laundering and countering the financing of terrorism (AML/CFT) measures.

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