Cross-Border Compliance Solutions

Every Indian fintech faces the same tension. "Can I use global tools and still stay compliant here?" Because on one side, you need global infrastructure. Cloud services. Scalable vendors. Speed. On the other side: • You’ve got RBI. • You’ve got data localization. • You’ve got laws that don’t bend just because AWS is faster in Singapore. That’s the tension every Indian fintech founder faces. Go global too fast -> you risk breaking the law. Play it too safe -> you fall behind competitors. Here’s how this really works: 1// RBI Mandates • All payment-system data (KYC, Aadhaar, PAN, transactions) must be stored in India • Any offshore processing? Data must be deleted abroad + synced back to India within 24 hours • Lending data now also covered under RBI’s 2025 Digital Lending Directions • Non-compliance = frozen services or penalties 2// DPDP Act 2023 • Generally allows cross-border transfers • But explicitly preserves RBI/SEBI/IRDAI sectoral rules • Meaning: RBI’s localization requirements still stand • Transfers abroad require contracts, safeguards, and explicit user consent 3// KYC & AML Compliance • RBI mandates strict KYC/AML under PMLA + Master Directions  • Aadhaar e-KYC (OTP/biometric) + video KYC = valid onboarding • Non-resident clients require certified docs (notary, embassy, bank) • Records must be retained 5+ years + suspicious transactions reported to FIU 4// Cross-Border Payment Aggregators (2023 framework) • RBI license required for import/export payment facilitation • Merchant + buyer due diligence mandatory • Maintain KYC + transaction records for 5 years • Must comply with FEMA + forex reporting rules And the key takeaways are simple: • Localize all Indian-user payment + personal data • Draft robust cross-border data transfer agreements • Use RBI-approved e-KYC methods for onboarding • Outsource carefully - liability stays with you • Monitor RBI circulars + DPDP notifications for blacklists The pattern ultimately is VERY clear:  Fintech in India lets you think global But only if you stay rooted in compliance at home. That’s the only way to scale without gambling your future. --- ✍ Tell me below: What’s the biggest compliance challenge your fintech team faces right now - data, KYC, or cross-border rules?

Trade compliance is nobody’s job-until it’s everyone’s problem. I see this happen all the time with small to medium-sized pharma companies. As they build global supply chains, trade compliance often starts as an afterthought. Then, the questions come flooding in: - What regulations apply? - What documents do we need? - How do we move goods across borders without delays? At this point, the big question emerges: Who owns trade compliance? Without a clear owner, it gets passed around. Supply chain? Maybe. Clinical group? Possibly. Tech ops? Could be. The result is inconsistency, confusion, and-worst of all-bottlenecks at the border. Here’s the truth: Trade compliance needs a home. A single function or person to: → Keep the big picture in focus. → Ensure consistency in documentation and processes. → Serve as a central source of knowledge and guidance. Once you have an owner, the next step is building processes. They don’t need to be complex. They need to be fit for purpose and aligned with your supply chain. The goal is simple: Get goods across borders quickly and compliantly, avoiding customs delays and regulatory headaches. Here’s a quick roadmap: ✅ Identify a trade compliance owner-this could be anyone from supply chain to finance. ✅ Develop their expertise so they can advise on regulations and requirements. ✅ Make their role known across the organization-everyone should know who to turn to. ✅ Build a framework of processes and procedures that ensures compliance and efficiency. Trade compliance isn’t just about avoiding fines. It’s about enabling your supply chain to run smoothly. The sooner you address ownership, the sooner you can prevent problems before they start. What challenges have you faced when establishing trade compliance in your organization? I am Elizabeth Lomax, import/export compliance expert helping pharma and biotech companies create more efficient international supply chains. DM me or visit my LinkedIn profile to learn more. To stay updated, click the notification bell on my profile. 🔔

The transfer of data across borders is essential to the functioning of the cross-border payments system. This final report published by Financial Stability Board (FSB) (https://lnkd.in/gmdSMx_m) sets out final 12 recommendations for promoting alignment and interoperability across data frameworks (i.e. the laws, rules, and regulatory requirements for collecting, storing and managing data) applicable to cross-border payments. These recommendations aim to tackle unintended frictions that hinder improvements in cost, speed, transparency, and accessibility while upholding critical objectives like security, AML/CFT compliance, and privacy protection. The 12 Recommendations at a Glance: 1. Collaborative Policymaking Forum: Create a global forum with international bodies to resolve data frictions. 2. Consistency in Data Requirements: Harmonize frameworks to support AML/CFT and privacy goals. 3. ISO 20022 Adoption: Foster global adoption of ISO 20022 for seamless payments. 4. Clear AML/CFT Guidance: Standardize data compliance requirements using global standards. 5. Sanctions Standardization: Improve sanctions list formats and reduce false positives with better identifiers. 6. Global Identifiers: Encourage Legal Entity Identifiers (LEIs) as a global best practice. 7. Efficient Data Flows: Balance faster, cost-effective data flows with privacy protections. 8. Unified Privacy Standards: Enforce consistent domestic and cross-border privacy regulations. 9. Legal Pathways for Data Sharing: Enable international data sharing for fraud and risk management. 10. Cross-Border Regulatory Access: Facilitate timely and secure data sharing with foreign regulators. 11. Consumer-Centric Policies: Mitigate the impact of restrictive data policies on payment efficiency. 12. Fostering Innovation: Promote public-private partnerships and innovation-friendly regulatory frameworks. Nth Exception #payments #crossborderpayments #aml #banking #regulations #iso20022

“Bank for International Settlements – BIS’ Project Mandala's overarching objective is to increase the efficiency, transparency, and speed of large-value cross-border transactions without compromising the quality and soundness of regulatory checks.” This was achieved by the project as described in the final report, whose key points are: ➡ Compliance by Design Approach: Project Mandala applies a compliance by design model, streamlining cross border compliance for financial institutions and enabling real time monitoring for regulators. ➡ Efficiency Gains: The system reduces transaction failures by performing compliance checks before funds are released, automates compliance processes, and consolidates compliance checks across the transaction chain. It also enhances end-user privacy, removes intermediaries, and allows for programmable compliance on digital assets ➡ Transparency and Privacy: Mandala introduces transparency around policies and regulations, while safeguarding privacy by preventing unencrypted data sharing beyond the banking environment ➡ Seamless Integration: Designed for interoperability with both new digital assets and existing payment systems, Mandala demonstrated integration with Swift and the potential for future integration with other systems, such as central bank digital currencies (CBDCs) ➡ Use Cases: Two use cases of cross-border transactions, designed in collaboration with commercial banks, demonstrate the system’s adaptability to regulatory requirements across four participating jurisdictions ➡ Future Development: Legal liability, enhanced data quality, inclusion of additional regulatory and supervisory nodes, and integration with evolving digital asset systems are identified as areas for further exploration #crossborder #payments #regulatorycompliance #compliance Nafis Alam David Jimenez Maireles Sam Boboev Prasanna Lohar

Why Hasn’t Anyone Solved This Before? We can sequence DNA. We have driverless cars. Our phones can practically run our lives. And yet, until now, no one had ever built software, inside a core banking system, a digital bank platform, a RegTech solution, or any compliance system, that could address the exact problems facing every player in cross-border payments: originating institutions, correspondent banks, central banks, and regulators. Think about that. For decades, the system stayed manual and inefficient. Institutions wrestled with the same operational headaches over and over again, and the technology to fix it simply didn’t exist. We decided that didn’t make sense. So we built it. The first software purpose-built to solve the unique compliance and operational challenges of cross-border payments for financial institutions. Now, instead of relying on manual checks and fragmented processes, banks can execute with speed, accuracy, and confidence, finally bringing cross-border into the modern era. Sometimes the most glaring problems are the ones hiding in plain sight. This was one of them. And we just solved it.