February 2025
In late 2024, the Bank for International Settlements (BIS) and central bank partners concluded an experimental project, Project Mandala, which aimed to show that regulatory compliance can be embedded within cross-border payments. In particular, the project demonstrated that programmable compliance can be incorporated into cross-border payments, reducing costs and increasing transaction speed while automating compliance procedures.
At the GFTN Insights Forum, the BIS Innovation Hub hosted a roundtable on programmable compliance. The roundtable convened experts from the public and private sectors and academia to discuss existing challenges related to cross-border payments compliance and the potential of programmable compliance for streamlining cross-border financial transactions.
Key areas of discussion included existing challenges for compliance issues, the role of privacy-enhancing technologies and smart contracts in the automation of compliance processes, and the need for collaboration across sectors to address evolving regulatory demands.
Key insights highlighted the need for programmable compliance solutions that are adaptable, interoperable, and privacy preserving as well as the need for knowledge exchange between stakeholders.
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