On 25 September 2024, the Central Bank of Ireland (Central Bank) announced that its first Innovation Sandbox Programme (Programme), which is themed combatting financial crime, is open for applications.
The Programme commences in December 2024 and will run for six months. The Central Bank is calling for applications from firms developing a product or service that uses innovative technology to foster and develop solutions that minimise fraud, enhance Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) frameworks and improve day-to-day transaction security for consumers.
The Deputy Governor of the Central Bank, Derville Rowland, recently remarked that the new EU Authority for AML and CFT (AMLA) and national authorities must collaborate to raise standards and facilitate innovative solutions in the fight against money laundering and terrorist financing.
One example of this is the Central Bank’s establishment of the Programme to inform the early-stage development of selected innovative initiatives that are consistent with public policy objectives such as combatting financial crime.
The Programme aims to facilitate the development of new ventures and new business models that solve challenges identified in this sandbox theme and facilitate the faster and safer deployment of substantially new technologies, products, or services.
At the end of the Programme, the Central Bank will publish a report sharing key learnings.
Sandbox Programme framework
- Programme of workshops
Each month participants will engage in workshops on specific topics relevant to the theme of Combatting Financial Crime.
- Engagement with dedicated Sandbox Relationship Managers
Each participant will engage regularly with their dedicated Sandbox Relationship Manager, who will act as their point of contact to oversee and coordinate participation throughout the programme. The Sandbox Relationship Manager will also liaise with a broad range of Central Bank teams – from across the pillars of Consumer and Investor Protection, Financial Regulation and Monetary and Financial Stability – to provide regulatory advice and support as required.
- Access to Data Platform
Each participant can access a data platform offering data sets and tools relevant to the theme of combatting financial crime to test and develop their innovations.
Challenges and Problem Statements
Financial crime presents challenges, including the erosion of trust, the diversion of resources, the pace of innovation and new technologies, and financial loss. One key factor in successfully reducing financial crime is for firms and wider partners to work collaboratively by sharing data and intelligence.
To bring focus to specific areas of the combatting financial crime theme, applicants are asked to align with one of six Problem Statements set by the Central Bank.
read more at https://www.centralbank.ie/regulation/innovation-hub/innovation-sandbox-programme