Privacy Preserving Cross-border Compliance

Ensuring anonymity of transacting parties and private lists while performing compliance checks

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CHALLENGES

Compliance in cross-border transactions is tough

Requires movement of data outside a bank

Simple name search in private sanctions list yields lot of false positives

Reliance on third parties increases attack surface & risk of single point of failure

Friction in cross border transfers due to manual intervention and delays

Industry innovation powered by
Privacy Enhancing Technologies

Streamlining cross-border transaction compliance

BIS' Project Mandala aims to improve efficiency & automate cross-border compliance. It utilizes MPC for privacy preserving sanction screening & capital flow management.
READ REPORTTECHNICAL EXPLAINER
WHY MPC?
Functionality provided by the Private Sanctions List check, in which the originating bank provides the beneficiary name y while beneficiary bank or the third party provides private list of sanctioned entities L. The MPC securely returns a bit that indicates the presence/absence of y in the list Y

No exposure of private inputs (customer details, private sanctions list) to any party

Improved accuracy of fraud detection & Reduction in false positive

Higher efficiency of cross-border payments

ROUNDTABLE DISCUSSION

International collaboration b/w financial institutions

Frequently Asked Questions

Does Privacy Compute Engine  have access to data?

The privacy compute engine provider has no access to the inputs, queries or the outputs of computation. Data is encrypted in use.

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How can the Privacy Compute Engine be deployed?

The solution can be deployed on prem with the banks, or can be offered in a SaaS model.

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What check can be run using the PCE?

Scripts can be defined for various checks like sanctions, screening, capital flow management, & transaction monitoring among others.

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What if I want to collaborate with more than one party?

The checks are not limited to just two parties, any number of parties can collaborate to perform compliance checks.

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What is the key benefit for me?

The solution not only enables privacy friendly collaborations, but also improves check accuracy by unlocking additional datapoints such as PIls.

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