Malaysia's Central Bank Issues Details Of Fintech Sandbox Framework

KUALA LUMPUR, Oct 18 (Bernama) -- Bank Negara Malaysia (BNM or Malaysia's Central Bank) on Tuesday issued the details of the Financial Technology (fintech) Regulatory Sandbox Framework. It follows a one-month consultation on the proposed framework which was released on July 29, 2016. In a statement, the central bank said the regulatory sandbox will enable the experimentation of fintech solution in a "live" environment, subject to appropriate safeguards and regulatory requirements. It said over 60 comments and suggestions were received from various stakeholders including financial institutions, fintech companies, associations and other corporates. Following the comments and suggestions received, BNM said it has expanded the eligibility criteria to clarify the focus of innovations that the sandbox aims to support. "Innovations should have clear potential to improve the accessibility, efficiency, security and quality of financial services. "It should also enhance the efficiency and effectiveness of Malaysian financial institutions’ management of risks, or address gaps in or open up new opportunities for financing or investments in the Malaysian economy," said the bank. The framework will take effect immediately and is now open for application. BNM said applicants to the sandbox should be able to demonstrate that a product, service or solution has been developed to a functional stage and is ready for testing. The central bank will inform applicants of their eligibility to participate in the sandbox within 15 working days of receiving a complete application. This will be followed by preparatory engagements between it and the applicant prior to testing. --BERNAMA