Innovation Sandbox Programme

• Trust is one of the fundamental cornerstones of a well-functioning, resilient financial system. Financial crime erodes this trust for those who rely on its integrity.
  
  
• The fight against financial crime diverts resources away from economically and socially productive uses, and can undermine a country's financial stability.
  
  
• The pace of innovation and new technologies has meant companies are vulnerable to criminals as they introduce innovations.
  
  
• Globally, scams drove over $1 trillion in financial losses in 2023, while losses from Authorised Push Payment scams was valued at €9.9 million in Ireland in 2022, according to FraudSmart.
  
  
• Financial crime is not just an issue for the financial sector, but for other sectors too. One of the key factors in successfully reducing financial crime is for firms and wider partners to work collaboratively by sharing data and intelligence.

1. Overall: What technological solutions can help to deliver positive outcomes for consumers and firms by supporting them in combatting financial crime and fraud?
   
   
2. Collaboration: Can collaboration and information-sharing between and within the financial system, technology providers and other stakeholders enhance the effectiveness of anti-money laundering and counter terrorism financing efforts?
   
   
3. Firm obligations: How can innovative technology, including AI, be deployed to support firms to effectively meet their regulatory obligations?
   
   
4. Patterns: How can technology be better deployed to detect patterns or other indicators of consumer behaviour that may indicate financial crime is taking place?
   
   
5. Consumer protection: How can efforts to combat financial crime ensure that the solutions do not comprise privacy, data, security or consumer protection?
   
   
6. Regulatory adaptability: What are the impacts of the changing trends and emerging technologies in financial crime on the regulatory frameworks? To what extent do the current regulatory frameworks enable or hinder the use of technology to combat financial crime?

No. The programme does not provide any derogation or waivers from regulation to participants to engage in any testing of products with consumers, nor does it provide endorsements of any product, service or solution. However, when providing regulatory advice and support within the programme, we will seek to adopt a proportionate, outcome-focused and risk-based approach.

The provision of regulatory advice and support will provide participants with an understanding of the regulatory frameworks applicable to their specific innovation, covering a broad range of domestic and European regulations, standards, guidelines and supervisory expectations. 

The provision of regulatory advice and support within the programme is not legal advice and is not a substitute for risk and compliance resources. It remains for each participant to determine how it will ensure compliance with relevant regulations as applicable and to demonstrate how it will meet regulatory standards and expectations.

Central Bank of Ireland can only give advice and support on the obligations within its mandate.

It is for participants to be mindful of the legal obligations applicable to them.

The programme is open to applications from all sectors of the financial system such as authorised incumbent firms, start-ups scaling innovation, fintechs seeking authorisation, technology businesses providing services to financial firms, and academic commercialisation projects.

The programme is open to applications from standalone entities and from partnerships.

It is not suitable for an innovation that is at a very early stage of development where, for example, a model has not yet been built. If in doubt, please contact us at [email protected] to discuss the programme in further detail. We can also discuss whether our Innovation Hub may be more suited to your needs.

Applicants do not have to be Irish domiciled. We do, however, expect that applicants are selling, or intend to sell, their service or product in the Irish market.

Applications are sought from research projects that are focussed on the commercialisation of research. Commercialisation is the process of turning research into an innovative commercial product or service. Ideally, applicants should be able to demonstrate that they have developed their solution in line with trial partners/customers.

Applicants that have been selected to participate in the programme will be listed on the Central Bank of Ireland’s website. Once a participant’s name is published, it may reference that it is taking part in the Innovation Sandbox Programme as long as it is made clear in all references that the Central Bank does not endorse the participant or its innovation. The use by participants of any crest, logo or mark of the Central Bank is prohibited.

By asking applicants to align with one of the six Problem Statements, we bring focus to specific areas of the theme. This allows us to categorise and group participants so that we can better tailor the Programme modules to participants’ needs. In the application form, each applicant should explain how its innovation is aligned with at least one of the six listed Problem Statements. If an applicant feels its innovation is not aligned with at least one of the problem statements but still falls under the theme, please set out an alternate problem statement in the application form.

The Data Platform provides a range of resources, including pre-loaded datasets and integrated developer environments. Data resources related to the Combatting Financial Crime theme will he made available to enable participants to explore, innovate, and build solutions for a diverse set of challenges. The Data Platform will also provide participants with access to relevant technical documentation/tutorials.

We do not help participants to find partners to participate in the programme, nor do we match participants together for projects. It is for each applicant to consider whether it needs to partner with another party in order to participate in the programme.

We expect participants to dedicate sufficient time and resources to engage with the Central Bank in a meaningful and timely manner throughout the full six months of the programme. We recommend that participants attend each of the workshops.  We expect a sufficient level of subject matter expertise of the participants for information sharing and mutual learning purposes.

Applications will be assessed based on the following selection criteria:

• Alignment
  The innovation should support consumers and/or the financial system and be clearly aligned with the Innovation Sandbox Programme theme of Combatting Financial Crime.
  
  
• Value of Innovation
  Applicants should demonstrate how the innovation is at a stage of development to benefit the public good.
  
  
• Viability of Innovation
  Applicants should demonstrate how the appropriate conditions are in place for the innovation to have a viable and sustainable impact on consumers and/or the financial system.
  
  
• Need of Innovation
  Applicants should demonstrate a need to participate in the Innovation Sandbox Programme.

We will endeavour to take all necessary steps to protect IP and confidentiality for participants as required. Further detail on IP and confidentiality will be provided in the Terms and Conditions.

Yes. At the end of each programme, the Central Bank will publish a report sharing key learnings from the programme. The report will include anonymised information on the regulatory advice and support provided to participants and on the operation of the programme. In this way, the programme will not only benefit the participants, but the whole innovation ecosystem.

The closing date for applications to the Innovation Sandbox Programme is 31 October 2024.

A selection panel will be made up of senior staff from Central Bank of Ireland and a national competent authority of an EU member state will make the final selection decision.

Applicants who are selected will be required to sign the Terms and Conditions before commencing the programme.

Applicants who are not selected to participate will be informed of the Central Bank’s decision and provided with relevant feedback, including details of the Innovation Hub, which may be more a suitable channel to consider their innovation.

Once selected, each participant will work with a designated Sandbox Relationship Manager to agree on objectives and liaise on workshop modules, the Data Platform and any questions the participant has.

The Innovation Sandbox Programme for the theme of “Combatting Financial Crime” will commence in December 2024.

We do not provide funding to participants.

There is no charge to apply to the programme. The overall cost of the resources deployed on the Sandbox activities are funded by the financial services industry as a whole. In line with the Central Bank’s overall Industry Levy approach, the cost of the programme is achieved in a proportionate and appropriate way across sectors and regulated entities.