The Mandala initiative, a collaboration between the Bank for International Settlements Innovation Hub (BISIH) and the Reserve Bank of Australia (RBA), the Bank of Korea (BOK), Bank Negara Malaysia (BNM) and the Monetary Authority of Singapore (MAS), plans to automate compliance processes and provide Reduce policy and regulatory compliance burdens with real-time transaction monitoring and increased transparency and visibility of country-specific policies.
Continuing the Dunbar Project, exploring programming compliance to increase efficiency
BIS’s previous Dunbar Project developed an experimental multi-central bank digital currency (mCBDC) platform with the aim of reducing reliance on intermediaries, thereby reducing the cost and time required to process cross-border transactions. However, when developing the plan, relevant discussions also arose. For example, in cross-border payments, how to solve the regulatory differences in different jurisdictions? And what kind of governance arrangements can give countries enough confidence to share key national infrastructure such as payment systems?
The Mandala Project announced today continues discussions under the Dunbar Project to explore the feasibility of codifying policy and regulatory requirements into a common protocol. The hope is to automate compliance procedures, provide instant transaction monitoring, and increase transparency and visibility of country-specific policies.
The initiative is a collaboration between the Bank for International Settlements Innovation Hub (BISIH) and the Reserve Bank of Australia (RBA), the Bank of Korea (BOK), Bank Negara Malaysia (BNM) and the Monetary Authority of Singapore (MAS).
Relevant measures may include quantifiable and configurable foreign exchange rules, as well as anti-money laundering and combating the financing of terrorism (AML/CFT) measures. and is consistent with the Financial Stability Board’s 2023 priority actions to achieve the G20’s goal of strengthening cross-border payments, which is to promote an efficient legal, regulatory and supervisory environment for cross-border payments while maintaining their security and integrity.
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