The Bank for International Settlements (BIS) and a group of central banks have successfully completed Project Mandala demonstrating automated compliance for cross-border transactions.
Project Mandala was carried out in collaboration with the Reserve Bank of Australia, the Bank of Korea, Bank Negara Malaysia, and the Monetary Authority of Singapore.
The initiative showcases how regulatory requirements can be embedded directly into cross-border payment processes, aligning with G20 priorities to make these transactions faster and more cost-effective.
The project reached proof of concept by automating compliance procedures, addressing a critical challenge faced by global financial systems: the need to adhere to multiple regulatory standards across jurisdictions.
By enabling transactions to pass necessary checks before proceeding, Mandala offers a streamlined approach to international payments, ensuring they remain compliant while improving efficiency.
It enhances transparency and provides real-time reporting and monitoring capabilities for regulatory bodies.
The system’s capabilities were demonstrated through two practical use cases.
First, in cross-border lending between Singapore and Malaysia, Mandala facilitated real-time compliance monitoring, specifically for capital flow management measures (CFM) and sanctions screening.
In a separate use case, involving capital investment transactions between South Korea and Australia, it automated sanctions screening and conducted compliance checks for unlisted securities transactions for financial institutions.
These examples highlight Mandala’s ability to support transparency and regulatory oversight without compromising transaction speed.
The project’s system architecture integrates both new digital asset frameworks and traditional financial networks, such as SWIFT, allowing it to function within various financial infrastructures.
This adaptability also positions it to work with central bank digital currencies (CBDCs), reinforcing its role in both current and future payment landscapes.

Maha El Dimachki, Head of the BIS Innovation Hub Singapore Centre, said,
“Mandala is pioneering the compliance-by-design approach to improve cross border payments without compromising privacy or the integrity of regulatory checks.
We are optimistic about the potential of these early results to enhance cross border payments.”

Bank Negara Malaysia Assistant Governor Dr. Norhana Endut said,
“Project Mandala has given us a peek into the future of cross-border payments. We have successfully demonstrated a potential solution to address key challenges with existing compliance processes, unlocking the pathways for faster, more secure, and efficient international transactions.
This project serves as a critical building block for further advancements in cross-border payments. It would also reinforce our collective commitment to fostering greater economic and financial integration while enhancing regulatory oversight capabilities.”