Regulatory Sandbox

The Bank's Sandbox provides a testbed for financial technology to explore innovative solutions to financial inclusion challenges. It allows companies to partner with BPNG to assess compliance in a safe testing environment before products are deployed to the market.

The Bank of Papua New Guinea’s Regulatory Sandbox was established in 2021 to drive financial inclusion and the adoption of innovative technologies to better serve the citizens of Papua New Guinea.

The Regulatory Sandbox is a pathway to test new and innovative technologies, typically in partnership with a licensed financial institution. We encourage all applicants to consider whether their solution is a product for adoption by existing service providers and, if it is, to partner with one of PNG’s institutions. A full list of licensed institutions is available at https://www.bankpng.gov.pg/financial-system/licensed-financial-institutions/

To be eligible to enter the Sandbox, the product, service or solution should be innovative with clear potential to:

  • Improve accessibility, customer choices, efficiency, security and quality in the provision of financial services; or
  • Enhance the efficiency and effectiveness of PNG financial institutions’ management of risks; or
  • Address gaps in or open up new opportunities for financial benefits or investments in the PNG economy.
  • Ensure that applicants will provide the proposed project within a limited transaction (value and volume) for better risk management and mitigation. The limits must not be exceeded during the testing period.

Applicants may be one of the following:

  • Authorised financial institutions already active in PNG, already subject to regulatory review by BPNG;
  • Institutions that do not fall under the regulatory purview of BPNG but where the nature of their innovation may deem them to be carrying out activities requiring a license or regulatory approval from BPNG;
  • Non-financial sector entities developing solutions that can accelerate financial inclusion, in recognition of the cross-cutting benefits of financial services with other industries:
  • Local FinTech developers, such as newly created entities in PNG that have developed or are developing solutions/concepts outside traditional business models that may represent new inclusion or financial opportunities;
  • Overseas FinTech developers, such as start-ups and other entities domiciled outside PNG that have developed or are developing solutions outside traditional business models that may represent new possibilities.

Applicants should demonstrate that they have:

  • Conducted adequate and appropriate assessments to demonstrate the usefulness and functionality of the product or service and to understand the associated risks; and
  • Possess the necessary resources (financial and human) to participate in the Sandbox, and to mitigate and reasonably control potential consumer risks and losses from activity within the Sandbox.

To apply, please download and complete this form: BPNG Fintech Sandbox Application Form

For further information please email sandbox@bankpng.gov.pg

Other relevant information:

Regulatory Sandbox Framework

Banks and Financial Institutions Act 2000 and Prudential Standard BPS253: Customer Due Diligence Standards (Issued under Section 27 of The Banks and Financial Institutions Act 2000)

Anti-Money Laundering and Counter Terrorist Financing Act 2015 and Criminal Code (Money Laundering and Terrorist Financing) (Amendment) Act 2015 – certified in 2016

National Payments System Act 2013 (No. 10 of 2013, certified on 19 September 2013)