Bank Negara Malaysia (BNM) has released details of the framework for Malaysia’s regulatory sandbox. The finalisation of the framework follows a consultation which began in July.
Under the sandbox framework BNM may consider granting regulatory exemptions to applicants for the purpose of testing an innovative product, service or solution for a period of up to 12 months.
Applicants wishing to apply for the sandbox should have innovations which are ready for testing and have the potential to:
- improve the accessibility, efficiency, security and quality of financial services;
- 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.