This decentralised architecture integrates three core components: a peer-to-peer messaging system, a rules engine and a proof engine.
It ensures all necessary compliance checks are completed before the payment instruction is initiated and once all checks have been completed, the system automatically generates a compliance proof, which can accompany any digital settlement asset or payment instructions across borders.
This project proved its technical feasibility through cross-border lending between Singapore and Malaysia and cross-border financing for capital investments between South Korea and Australia.
Project Mandala successfully integrates with both nascent digital asset settlement systems, such as a wholesale central bank digital currency, and traditional payment messaging systems.
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The project has now reached the proof-of-concept stage.
Sopnendu Mohanty, chief FinTech officer at MAS notes that “This collaboration between Singapore, Australia, Malaysia and South Korea to incorporate programmable compliance into payment flows marks a significant development in advancing seamless cross-border financial transactions.”
“MAS is glad to have contributed to the development of Project Mandala, by extending the architecture of Purpose Bound Money to support capital flow management and sanctions screening,” Mohanty adds.
