Regulatory Sandbox in the Financial System

Application, scope & purpose

Spain’s AI regulatory sandbox is a controlled testing environment that allows innovative technological projects to be implemented in the financial system, fully compliant with the legal and supervisory framework, in order to increase efficiency, service quality, and, particularly, security and protection against new financial technology risks.

MV/VW environment

N/A

Role of sandbox

Provide controlled, supervised spaces for testing innovative solutions with tailored regulatory oversight and data protection guidance.

Results obtained

  • Nine batches of supported pilot projects, mostly in the payment system, risk insurance and social security sectors;
  • The Spanish law 7/2020 establishes reinforced obligations in the following three areas:
    • (i) the protection of personal data,
    • (ii) the prevention of money laundering and terrorist financing, and 
    • (iii) the protection of users of financial services.
       

References