Nabilah S
The Central Bank of Samoa(CBS) has introduced the CBS Regulatory Sandbox as a key initiative in its broader strategy to advance the development of Samoa’s financial sector.
The Regulatory Sandbox is an integral component of the CBS regulatory framework, enabling legal entities to pilot innovative and eligible financial products and services in a secure, controlled environment before they are launched to the market.
Legal clarity is essential for financial innovators and FinTech companies looking to introduce products and services that may not yet be fully regulated in Samoa. These innovations have the potential to drive significant progress in financial inclusion and support the country’s economic development.
CBS will be able to balance innovation and risk management through the Regulatory Sandbox, allowing new products and services to be tested within set terms and conditions while protecting the financial system from unnecessary risks. However, it cannot serve as a means to circumvent existing regulatory and legislative requirements.
The Regulatory Sandbox will assist CBS in maintaining the stability of Samoa’s financial system while promoting financial inclusion, as outlined in the Central Bank of Samoa Act 2015. Additionally, it is aligned with the goals of the National Financial Inclusion Strategy for 2022/2023 – 2025/2026.
Following the official launch of the CBS Regulatory Sandbox, interested applicants can now submit their applications through the process outlined in the CBS Regulatory Sandbox Framework.
However, it is strongly encouraged and recommended that applicants consult with CBS prior to submitting their application.
The Regulatory Sandbox was created with in-country implementation support from the Alliance for Financial Inclusion (AFI), a policy leadership alliance of financial regulators and policymakers dedicated to advancing financial inclusion at the national, regional, and international levels.
“AFI remains a crucial policy partner for the CBS in its financial inclusion efforts, and we deeply appreciate the support from AFI, which enabled the technical assistance to develop our regulatory sandbox. This marks a major achievement for the CBS and a significant milestone in advancing developments in the financial sector. We look forward to collaborating with eligible entities through the Sandbox program,” said CBS Governor Maiava Atalina Ainuu-Enari.
The CBS Regulatory Sandbox will also connect with regional initiatives to establish a Pacific Regional Regulatory Sandbox. AFI continues to offer support for this initiative across the Pacific.
