Financial Crime World

Brunei Darussalam’s Fintech Sector Faces Compliance Requirements

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The financial technology sector in Brunei Darussalam has been undergoing significant development with the establishment of the FinTech Office as a one-stop virtual facilitation office for interested parties to contact the Central Bank of Brunei (BDCB) on matters related to fintech.

Regulatory Sandbox Guidelines

In 2017, BDCB introduced its Regulatory Sandbox Guidelines to aid in the development of fintech companies in the country. The guidelines aim to create a regulatory environment that allows qualified companies or businesses to experiment with innovative solutions for a limited period of time and within specific boundaries.

Streamlined Application Process

Following an amendment issued by BDCB in December 2020, the application process for the sandbox has been streamlined, reducing assessment time.

Three-Phase Process for Fintech Regulatory Sandbox

To apply for the fintech Regulatory Sandbox, interested parties must follow a three-phase process:

  • Pre-requisites: Submit a comprehensive application that outlines the proposed solution and its legal and regulatory requirements.
  • Application Evaluation: The application will be evaluated and refined as necessary before approval is granted.
  • Testing Phase: Once approved, the sandbox entity may begin testing under the guidance of BDCB. The agency and the company will maintain constant communication throughout the testing phase.

Approved Fintech Companies

Currently, two fintech companies have been approved to operate in the Regulatory Sandbox:

  • Jana Kapital: Testing a Shariah-based peer-to-peer crowdfunding platform for micro, small, and medium-sized enterprises (MSMEs).
  • MMB Transfer Sdn Bhd: Developing digital remittance and cross-border payments services utilizing blockchain technology.

Education and Awareness

The FinTech Office has emphasized the importance of education and awareness among fintech sandbox consumers. Before participating or engaging in the services offered by a company in the Regulatory Sandbox, consumers should understand their rights, which can be found on the authority’s website.

Contact Information

For more information or inquiries about the fintech regulatory environment in Brunei Darussalam, interested parties may contact the FinTech Office directly.