Regulatory Sandbox

The Regulatory Sandbox is a live environment that enables financial institutions and fintech companies to test an innovative financial product and service with real consumers within a defined period and controls.

This framework, established by the Central Bank, aims to accelerate market adoption, enhance competitiveness, identify and address challenges to ensure the sustainable growth of cutting-edge financial solutions.

Number of applicants

Innovators and visionaries who have submitted their applications

21

Number of participants

Participants contributed in building more innovative financial ecosystem

0

Journey through Regulatory Sandbox

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1. Application

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2. Evaluation
20 working days

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3. Testing
12 months

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4. Exit

Applications for the regulatory sandbox will be accepted within the timeframe specified by the Central Bank

Regulatory Sandbox is open to:

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FinTech
companies

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Payment Service
Providers

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Financial market
participants

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Tech companies involved in FinTech operations

Who?

Fintechs and Financial
institutions

How?

The company conducts tests under the regulator's supervision within the agreed-upon parameters

When?

During the given by Central Bank windows for a cohort application

Innovative Product Eligibility Criteria

This section outlines the main evaluation criteria which will be used by CBAR to assess the application submitted by the applicant:

  • An innovative product should be more accessible, safe, and affordable for consumers
  • It should be ready to be tested in real mode
  • It should not be fully regulated by current legislation
  • It should be deployed and ready for implementation in Azerbaijan
  • It should not create potential systemic risks in financial markets
  • It should have sufficient financial, human and infrastructure resources

Documentation

FAQ

The Regulatory Sandbox is a live environment that enables financial institutions and fintech companies to test an innovative financial product and service with real consumers within a defined period and controls.

Financial institutions, fintech companies cooperating with financial institutions, legal entities engaged in fintech activities, as well as fintech companies cooperating with international fintech companies can apply for participation.

Applicants have the option to submit applications either directly through the website or in writing.

The applicant can submit an application online by visiting the regulatory sandbox website (sandbox.cbar.az).

For a written application, applicants should submit the documents and information outlined in paragraph 4 of the 'Rules on the special regulation regime' to the Central Bank. This submission should be made in the form of an official letter.

There are no fees associated with participation in the regulatory sandbox.

According to Article 3.2.1 of the “Rules on the special regulation regime”, the activities of a participant are exempt from licensing or permitting requirements.

In case of a positive test result, the applicant must have the intention to use the innovative product in the Republic of Azerbaijan. At the next stages, the operation of the innovative product outside the Republic of Azerbaijan may be considered.

If the Central Bank identifies errors or shortcomings in the submitted documents, the applicant will receive a written notification within 10 working days. The applicant is required to eliminate these issues and resubmit the corrected documents to the Central Bank within 20 working days from the date of receiving the notification.

After receiving a response to the denial of an application, the applicant may reapply with the same application to the Central Bank no sooner than 2 months, having eliminated the detected errors and shortcomings. In such cases, the reapplication is treated as a new application, following the guidelines outlined in Part 5 of the Rules.

Address

90 Rashid Behbudov str.,
AZ1014 Baku, Azerbaijan

Contact number

(+994 12) 497 2235