Featured Product

    CBB Enhances Regulatory Sandbox Framework for Financial Sector

    December 07, 2021

    The Central Bank of Bahrain (CBB) enhanced its regulatory sandbox framework to allow financial technology firms to test and experiment their ideas and solutions more efficiently and effectively. The improved framework enhances the eligibility criteria for participation in the regulatory sandbox, enhances collaborations between start-ups and fintech firms and the sector, and streamlines the sandbox process to ensure a more phased and consistent approach to support testing. Overall, the framework sets out the participation approach in the fintech regulatory sandbox, covering aspects such as the scope of application, eligibility criteria for participation, application and approval process, sandbox duration and extension, and exit process from the sandbox.

    Applicants wishing to enter into the sandbox must apply to CBB through the Regulatory Sandbox online application platform. In cases where two or more fintech firms are jointly involved in an innovative project or where a CBB licensed financial institution wishes to work with a particular fintech firm, a joint application may be made. The duration of the sandbox is up to a period of 12 months from the date of the CBB authorization to participate in the sandbox, though the testing period may be extended subject to certain conditions. The regulatory sandbox has gained significant interest from local, regional, and global start-ups and a number of companies have successfully completed testing their solutions to date. The regulatory sandbox is not suitable where the applicant is unable to comply with the requirements of this framework, in particular, the core requirements such as those related to anti money laundering and combating the financing of terrorism (AML/CFT), handling of volunteer customer or client money and assets, and maintaining the confidentiality of customer information. A participant may choose to discontinue the testing at any time, subject to providing CBB with a one-month notice. CBB may impose conditions in such cases and restrict a participant from the exit until its conditions are met.

    The regulatory sandbox, which is open to the existing CBB licensees and other local and foreign firms, was first introduced in 2017 in an effort to enhance the local fintech ecosystem and is being overseen by the FinTech & Innovation Unit of CBB. The FinTech & Innovation Unit is responsible for the approval process to participate in the regulatory sandbox, the supervision of authorized sandbox companies’ testing progress, and the monitoring technical and regulatory developments in fintech, both regionally and internationally, to lead on strategic fintech initiatives and to work closely with all stakeholders within the fintech ecosystem in the Kingdom. 

     

    Related Links

    Keywords: Middle East and Africa, Bahrain, Regulatory Sandbox, Fintech, Regtech, CBB

    Related Articles
    News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    News

    FASB Proposes Improvements to 2023 GAAP Reporting Taxonomy

    The Financial Accounting Standards Board (FASB) is seeking comments, until November 03, 2022, on the proposed technical and other conforming improvements for the 2023 GAAP Financial Reporting Taxonomy.

    November 03, 2022 WebPage Regulatory News
    News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News
    News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8588