About FTEG

The Financial Technology Enabler Group (FTEG) was established by Bank Negara Malaysia (BNM) in June 2016 to support innovations that will improve the quality, efficiency and accessibility of financial services in Malaysia. Comprising of cross functional group within BNM, the FTEG is responsible for formulating and enhancing regulatory policies to facilitate the adoption of technological innovations in the Malaysian financial services industry. 


Regulatory Sandbox

Bank Negara Malaysia (the Bank) seeks to provide a regulatory environment that is conducive for the deployment of financial technology. this includes reviewing and adapting regulatory requirements or procedures that may unintentionally inhibit inovation ot redeem them non-viable. Hence, Regulatory Sandbox (Sandbox) is introduced to enable innovation of fintech to be deployed and tested in a live environment, which specified parameters and timeframes.


Both financial institutions regulated by the Bank as well as fintech companies intending to carry on –

  • an authorised or registered business as defined in the Financial Services Act 2013 (FSA) and Islamic Financial Services Act 2013 (IFSA); or
  • a money services business as defined in the Money Services Business Act 2011.
Legislation and regulations under the purview of BNM

Eligibility Criteria

  1. Genuinely innovative solutions with clear potential to improve access, efficeincy, security and quality in the offering of financial services, enhance risk management of Malaysian financial services, or adress gaps and open new opportunities for financing or investments in the Malaysian economy;
  2. Adequate and appropriate assessment has been conducted to demonstrate the usefulness and functionality of the solution;
  3. Sufficient resources to support testing in the sandbox;
  4. Realistic business plan to deploy the solution on a commercial scale in Malaysia after exit from the Sandbox;
  5. Solution is incompatible with laws, regulations or standards administered by the Bank; and
  6. Led and managed by persons with credibility and integrity.


Successful applicants will be given an approval to test the solution in live market within a period not exceeding 12 months and certain safeguards and parameters in place. Where necessary, exemptions from relevant guidelines will be granted throughout testing period.

Download Sandbox Guideline
FAQ on Regulatory Sandbox