195 Today, the Bank for International Settlements (BIS) and its central bank partners have initiated Project Mandala, aiming to assess the practicality of integrating jurisdiction-specific policy and regulatory requirements into a unified protocol for various cross-border applications, including foreign direct investment, borrowing, and payments. The existence of differing policy and regulatory frameworks across jurisdictions poses significant challenges to seamless and efficient cross-border transactions. These differences contribute to a heavier regulatory compliance burden, elongate the duration of cross-border transfers, and create uncertainties among stakeholders. Led by BISIH Singapore Centre and in collaboration with RBA, BOK, BNM, and MAS, Project Mandala is designed to simplify the policy and regulatory compliance process by automating compliance procedures, facilitating real-time transaction oversight, and enhancing transparency regarding country-specific policies. The project aims to tackle the key challenges identified during Project Dunbar, which focused on the development of multiple central bank digital currency (mCBDC) platforms. The envisioned compliance-by-design architecture has the potential to streamline the cross-border transfer of any digital assets, including central bank digital currencies (CBDCs) and tokenized deposits. It could also serve as the fundamental compliance layer for existing and emerging wholesale or retail payment systems. These measures may incorporate quantifiable and adaptable foreign exchange regulations, as well as anti-money laundering and countering the financing of terrorism (AML/CFT) measures. Project Mandala’s objectives align with the Financial Stability Board’s 2023 priority actions for achieving the G20 targets in enhancing cross-border payments. It particularly focuses on promoting an effective legal, regulatory, and supervisory environment for cross-border payments while upholding their safety, security, and integrity. You Might Be Interested In WFM International Establishes New Benchmarks for Online Financial Platforms Leveraging Singapore Fintech for Sustainable Impact Peso weakens anew vs dollar ahead of US inflation report Cameroon’s Lessons in Digital Cash Transfers BEA China Envisions a Digital-First Future for Global Cross-Boundary Financial Services USAA Offers Financial Assistance to Members Affected by Potential Government Shutdown