CBSI Launched the regulatory sandbox framework
Left to right: Linda Folia – Manager Financial Inclusion Unit, Dr Luke Forau – Governor, Denson Deni – Manager Financial Systems Regulations, Mary Maggie Loea – Senior Analyst Financial Systems Regulations.
The Central Bank of Solomon Islands successfully launched the Regulatory Sandbox (RSB) Framework
last month on Thursday 14th April 2022 at the CBSI Board room.
The RSB is a guideline or framework through which a controlled testing environment is open and is
available for interested genuine innovators of Financial Technologies (Fintech) and its eco-system to test
their financial product.
The emergence of fintech and digitalization covers key areas such as; payment service providers,
innovative solution providers, Micro Small and Medium Enterprise financing, agriculture, insurance,
savings, credit, investment and wealth generation, sustainable and renewable power generation, mobile
money, remittances, payments transfers, tourism and any other key priority areas.
Following the launching of the Pacific Regional Regulatory Sandbox Guidelines in March 2020, CBSI,
with the technical support provided by the Alliance for Financial Inclusion (AFI), developed a Regulatory
Sandbox Guideline and Standard Operating Procedures (SOP) specific to Solomon Islands context.
The purpose of the sandbox is to provide and facilitate innovative regulatory approaches that
over time should see the ease of doing business in the country, with special emphasis on
providing access to and use of high-quality financial services to the unbanked and underserved
segment of our society.
Working together with AFI and its members across the Pacific region, CBSI was able to use peer
learning and knowledge sharing to develop regulatory and policy interventions which balance
innovations and oversight in inclusive FinTech.
Presenting the official remarks during the launching of the RSB, CBSI Governor, Dr Luke Forau said “it
is envisioned that this RSB framework is an enabler to the already transformative role that Fintech plays
(and will continue to play) in Solomon Islands; particularly in broadening financial access and providing
the opportunity to the unbanked and underserved segment of our society.”
“The regulatory sandbox should enable applicants to test their financial service as easily and efficiently as
possible without placing undue risk on customers and the financial system” Manager for Financial
Inclusion Unit, Linda Folia also explained in her opening remarks during the launch.
RSB supports the financial sector development exploring responsible innovative solutions that provide
opportunity for all Solomon Islanders including the informal sector to access and use a range of financial
services that will assist them to achieve greater financial security and financial opportunity.
It is also seen as a vehicle for transitioning our informal sector into the formal sector and, the digital
economy through digital financial services.
CBSI’s approach is to balance the need for innovation, broadening, and deepening of the financial sector
with the requirements of financial stability and integrity that will foster responsible innovative financial
services through creating an enabling environment.
This environment is where potential solution providers and innovators can experiment and test their
prototype innovative financial services but with clear guidelines and a criterion which enables
proportionate regulation and supervision by the Central Bank.
Governor Dr Luke acknowledged the challenges induced by these new and innovative financial services
and products as well as the sophisticated risks they do bring in but hopes to remain positive with the RSB
“However, we remain positive and open minded that this Guideline will continue to recognize our need
and will develop regulations that supports genuine and useful innovation and that it is already designed
with appropriate principles that requires applicants to embed adequate risk management, customer
protection and redressal mechanisms that enables appropriate mitigation and response to the new risks,”
The launching of the RSB is a key milestone for the Bank and was witnessed by the Management of the
Central Bank of Solomon Islands.
For more information, please contact:
Central Bank of Solomon Islands | P.O. BOX 634 | Honiara | Ph: (677) 21791 | Email:
firstname.lastname@example.org | Website: www.cbsi.com.sb